Larger corporations and established businesses will always require professional support from an accredited chartered accountant or accountancy team. While some entities will have in-house finance colleagues, the norm is to consult an independent adviser to assist with regulatory compliance, risk analytics, growth strategies and aspects like audits and tax efficiency measures.
However, picking a suitable accountant is just as complex for bigger firms as for new start-ups and smaller businesses, and the consequences of depending on poor-quality or generic advice can be significant.
James Todd & Co, a well-regarded West Sussex accountancy service provider with 30+ years of experience, shares some of the aspects to look at when determining whether one accountant or firm is the right fit, and insights into why growing businesses should select an accountant with care.
1. Evaluate Your Needs as a Business and the Level of Support You Want From Your Accountancy Team
Our first advice, especially if your company has grown rapidly and you’ve outpaced the previous accountant or bookkeeper you’ve been working with, is to take a step back to consider exactly what you want your accountancy firm to do.
We often talk about why expert accountants go beyond the basics of tax filings and year-end accounts. If you’re looking for these fairly simple tasks and don’t necessarily want or need any further input or oversight, your decision-making might be a lot easier.
That said, this is often a mistake because chartered accountants offer a wealth of experience, in many cases specific to your sector or industry. This can make a substantial difference to your growth prospects and the way in which you approach new opportunities or expansions.
Of course, you should only ever consult an accountant or team who holds recognised accreditations – but an accountant who is highly qualified yet doesn’t play any active role in your operations, or isn’t preparing regular management accounts, forecasts and cash flow analyses, won’t be in a position to bring all of their expertise to the table.
James Todd & Co might, for instance, advise on cloud-based software upgrades as part of a controlled digital transition, welcome a client into our Goals to Growth mentoring and growth-focused support programme, or conduct a comprehensive accounting clean-up to ensure all accounts, records, and filings are accurate, up to date and compliant.
All of these services are separate from accounts filings and tax returns, but can prove just as valuable, if not more.
2. Verify the Expertise and Sector Specialisms Your Shortlisted Accountants Offer
Onto specialisms, which we’ve mentioned, and we’d suggest that larger businesses and companies reaching new revenue thresholds think about the relevance of the advice they’re able to access.
Having a chartered accountant on standby is beneficial if you have a question about tax reliefs or audit requirements. Still, an accountant who doesn’t have a background in your industry and doesn’t understand the pressures you may be facing isn’t the ideal professional to help you achieve your commercial objectives.
Within our seasoned advisory and accounting teams, we have specialists in certain areas of regulatory reform and taxation, as well as highly experienced accountants with first-hand expertise in construction, consultancy, property, hospitality, tech, retail, non-profit, and healthcare sectors.
For larger businesses looking for a chartered accountant, we strongly advise looking at those who can offer direct advice on any financial decisions you make, the regulations you need to comply with, and changes having an impact on your industry.
3. Contrast the Pros and Cons of Global Accountancy Teams and Smaller Specialist Accountancy Providers
It’s common to speak with larger firms or enterprises that assume that the best solution is to talk with a ‘big four’ accountant – and, in some circumstances, this may be a good call if the services and value for money on offer align with your expectations.
Indeed, the largest accountancy firms have considerable resources and a global presence, which can be a positive for companies with complex global operations or that require cross-border accountancy assistance.
However, the personalised attention, ongoing monitoring of business operations, and one-to-one consultations we offer as a smaller, specialist firm may be far more commercially advantageous.
Our role is to get to know each client’s business in depth, which ensures we understand their trading structure and primary goals or targets, and can proactively identify opportunities for growth or potential risks on the horizon to ensure these are planned for and managed well in advance.
If in doubt, the best suggestion is to revert to step one, consider what you want from your accountant, and use those criteria to make an informed decision about the right solutions for your business.
4. Review Areas in Which Accountancy Firms Can Add Tangible Value
We’ve spoken about sector specialisms and the importance of, as a larger company, having an accountant who can offer much more than straightforward filings and tax calculations.
Depending on your growth cycle and what may have changed within your corporation for you to be looking for a new accountant, the areas where we can bring additional value to the conversation may vary.
General accountancy covers areas like tax planning, auditing, accounts, reporting, and business advice, but it is the added attention to detail that makes the biggest impact on stability and scalability.
For some clients, that means pre-emptive risk assessments and ongoing reviews of the company’s financial health; for others, it could be focused on technology integrations, all of which can be vital for businesses that have already seen success and want to capitalise on their momentum.
