Contractor accountants - things to look out for

Starting out as a contractor can be a daunting process. Most new contractors will not have had any experience of working via their own limited company in the past, so it is essential to hire an accountant who is not only familiar with how contractors work, but also provides the reassurance and expertise needed to minimise the uncertainties of starting that first contract.

Price

Price is normally a key factor for many contractors, who are looking to maximise their return from their new career path. As in life, you will typically receive the service you pay for. Over the past decade, with increased competition within the contracting accountancy marketplace, prices have become evermore competitive.

As a general guide, monthly fees of around £100 normally represent reasonable value for a genuinely comprehensive contractor accountancy service.

Experience / expertise

There are a large number of dedicated accountancy services available to today’s freelancer, and a number of them have been providing high quality service to freelancers over a number of years. However many others have jumped on the bandwagon and claim a level of expertise that simply doesn’t exist. Try to check this out before making your selection.

Range of services

Before hiring a contractor accountant, you should be told exactly what the monthly fee includes. Ask if there are any "hidden" fees, or extra charges for additional services which might be included for free elsewhere. Also ensure you are advised of the minimum fee payable should your contract come to an end during the year. Ideally, your accountant should take care of every aspect of your limited company accounting and tax responsibilities, including all dealings with Companies House and HMRC. They should also complete your personal tax return without charging an additional fee.

Personal Service

Personal service is something you should usually expect to be offered. Make sure you have access to a dedicated accounts manager, as, especially when first starting out as a contractor, it is reassuring to know that someone is responsible for ‘holding your hand’ through what may seem like a bureaucratic minefield, and can answer any questions you may have in a timely manner.

Online services

Given the importance of the web these days, most leading specialist accountants will provide you with online accounting and communication systems. Ideally, you should be able to look up your accounts and transactions online at a time and a place that suits your busy lifestyle, (always of course presuming you have submitted the required information to the accountant)!

Bottom line

Before choosing an accountant, ask for a personal tax illustration - what you'd expect to take home after all taxes have been deducted. Don't be afraid to call them up, or email any questions you have, and only commit once you feel assured by your the initial impressions of the firm.

You can also visit specialist contracting site, Contract Eye, for more tips on choosing a contractor accountant.