Bizstartup.ie - Start Up Kit

All too often small businesses when seeking out the services of an accountant:

• don’t keep their records properly, and don’t respond to requests for information;
• have to be chased to meet deadlines and insist work is done at the last minute;
• don’t pay their bills on time;
• don’t listen or respond to the advice that is given.

Too often, small businesses are paying professional hourly rates simply for someone to file their paperwork or make a list of transactions.

The biggest thing you can do to reduce their accountancy fee is to do the bookkeeping yourself – if you do it, you don’t have to pay your accountant significant amounts of money to do it for you.

Be aware of the deadlines that apply and let your accountant have your paperwork within two to three months of your year end.

Leaving things to the last minute may be natural, but it will certainly mean that you pay more and it leaves no room for an unexpected delay or to deal with issues arising from the work done.

It also means that such things as tax planning can’t be done properly, and the need for advice cannot properly be addressed.

The truth is that most deadlines are generous enough to give sufficient time to complete everything, and your accountant won’t be impressed if you turn up at the last minute with your records to sort out and your tax return to do.

You might believe the accountant has the time to complete the work, but the accountant will be focusing on all those clients in the queue before you.

What information does your accountant need?

Make sure you know what your accountant needs from you, so he doesn’t have to keep asking for missing information. Ask your accountant for a list of what is needed.

As a guide in addition to your bookkeeping records you should also provide:

• all bank statements for all bank accounts filed in order
• details of new business loans;
• HP and leasing agreements;
• business credit card statements;
• interest on savings;
• confirmation of pension contributions.

Make sure you understand what is included in the fee your accountant has quoted, and what isn’t.

Advice

How much tax planning is done and what about a review of PAYE and VAT?

If you need advice on a complex area, make sure your accountant is aware of all the circumstances, but expect to pay a fee for it.

How much should I pay?

It is not possible to generalise about how much you should pay your accountant. It depends on your own circumstances. However, most accountants will give a fee estimate in advance.

Gahan & Co Chartered Accountants is based in Dublin and Paddy Gahan has set up a series of free networking events for small businesses.