Contractor accountants - finding the right freelance accountant
As a contractor, or freelancer, possibly the most important professional person you will deal with on a regular basis is likely to be your accountant. For limited company contractors, or sole traders, choosing the right accountant is an essential task when starting out, as you need to be sure that your finances are up-to-date, and your affairs are dealt with accurately and in a timely manner.
Aside from the obvious consideration of cost, there are a number of things you need to bear in mind when choosing a contractor accountant. Using our experience of the contracting industry over the last decade, here are Bytestart's tips to help you on your way.
Choosing a contractor accountant
Specialists - we recommend you always employ an accountancy firm who specialise in the needs of contractors or freelancers. They will have in-depth knowledge of targeted tax legislation such as IR35, as well as the way contractors' businesses operate.
Monthly Fees - most specialist accountants quote monthly fees. Make sure you know what this fee includes, as you may find that some services are not included. Some of the more well-known firms charge in the region of £75-£100 per month for an 'all inclusive' service.
Company Formation - if you are starting out as a contractor, many contractor accountants will form your limited company on your behalf, as well as registering your company for VAT, and other initial tasks. Again, this service may be included in your monthly fee, or may be charged as an extra service.
Service - the last thing you want is to end up chasing your accountant for everyday tasks to be done (many contractors have found this to be the case). Some firms offer a service or reply guarantee which should provide you with added confidence that your accounts are being dealt with efficiently. Before you sign up, ask if you will have a dedicated accounts manager, and how communications are managed.
Online Accounting - more and more specialist accountants are using online systems as part of their service offering (or integrating with third party software like FreeAgentCentral). This can only be a good thing as it enables contractors to view their accounts online at any time, and also to record communications. Worth looking out for.
Recommendations - you simply can't beat a recommendation from a fellow contractor or freelancer who has been in the business for a while. Some aspects will be down to personal preference, but find out if any of your colleagues have good words to say about their own accountant.
In summary, as a contractor, you're looking for good value, good service, and timely and accurate accounting from your chosen service provider. Once you have several providers in mind, make sure you call up each one with any questions you may have before making your choice.
Also, take a look at Contract Eye's list of contractor accountants for some initial suggestions.
Posted February 14, 2010
- Comprehensive, expert contractor accountancy service for £95/month with no hidden extras - try Clarity Contracting, Chartered Accountants.
