Nobody wants to pay their accountant more than they need to. However, is using a cheap accountant a false economy? My answer to that is, very possibly.
At Michael Paul Accountants we have two priorities
- To make sure our clients are operating in the most tax efficient manner possible.
- To keep them out of trouble. In other words, if HMRC come knocking, there isn’t anything that’s going to come back to bite them.
If you are paying your accountant a very low price, the chances are that they are just putting the figures together without much thought.
A more thorough accountant however should be taking matters a step or two further and reviewing the figures in detail. They will be looking at factors such as the following
- Do the figures in the accounts look accurate. Does the bank balance agree to the bank statement, does the wages paid figure agree to the wage records, etc.
- Are there any old customer or supplier invoices outstanding for payment. If so, why? Have they been duplicated or is the client owed money that they aren’t aware of.
- Are there any costs which could be claimed for but aren’t. Examples of these include business use of home or a mileage claim for using a personal vehicle for business travel.
- Are there any costs being claimed which shouldn’t be because they don’t fit the criteria for business expenses. This is important, as in the event of a HMRC investigation an assessment for underpaid tax, penalties and interest can be quite significant.
- Is there anything the client could do to operate their business in a more tax efficient manner.
However, all this takes time, often longer than putting the accounts together in the first place. So, if this is the sort of service you want from your accountant, then you need to be prepared to pay a little more for it.
If you are looking for an accountant for the first time or feel you aren’t getting the service from your current account that you should, why not get in touch with us for a chat.