SMEs and one man band companies need to make sure that their financial affairs are being dealt with by expert accountants. This kind of scenario is also applicable to all IT contractors and freelancers. Like all other businesses, they must also sign up with a reputable, specialist accountant that will handle their financial and accounting needs.
Dealing with numbers and vat and payroll issues is not the job for an IT contractor and it is not part of their expertise. They may have the depth of knowledge to deal with financial issues and paper work but instead of dealing with it, it is better to hire a reputable accountant to do all this for them.
Here are some of the tips that contractors can consider in looking for an accountant.
First of all, make sure to hire specialists. Before looking at anything else, you need to look for a team of specialist contractor accountants. Of course, you will most definitely want to hire an accountant that understands tax issues involved in a contracting business. You should look for firms who dealing with the contractor /freelance market.
Second, look for additional services that they offer. Like any other businesses, accountants for contractors also offer packages to their clients. This may include things such as completion of your annual self assessment return and IR35 contractual advice. If you are just about to begin your contract, your accountant can also help you with some issues in setting up your own company. They can help you register for VAT and any other services that will require their expertise.
Third, check the fees they are charging. Usually, contractor accountants may provide a complete accountancy service for a fixed monthly fee. However, you must fully research the services that the packages includes. Make sure that the amount that you will pay will be equal to value of the service that they will provide. Usually, the monthly packages include dealings with the tax authorities, PAYE and NI calculations, completion of TAX returns and year-end accounts.
Fourth, you must give some thought to their knowledge of tax legislation. They must be knowledgeable of IR35, managed service companies and income shifting since each of these issues has a big effect on the majority of contractors.
Fifth, you must consider the services that they provide. Like what is mentioned earlier, you must be aware of the services that they provide. You can contact several contractor accountants and find out about the services that they provide. You can compare the services that they provide including the fees that they incur and select the best contractor that will suit your needs.
Sixth, give some thought to personal recommendations. Among the other tips, this is the best way to look for a good firm of contractor accountants. With the help of other contractor colleagues, you can find the best accountants that can help you. They already have experience in dealing with them and you can be sure that they can provide the services that you need based on the testimonials of your colleagues.