Choosing the right accountancy service is one of the most important decisions you’ll make as a small or medium-sized business owner. Whether you’re in construction, engineering or the tech sector, having the right financial support can mean the difference between thriving and just surviving.
With the 2024/25 tax year upon us, it’s vital to have an accountancy service that not only understands the current tax rules but also aligns with your business goals and industry needs.
Understanding your business needs
Before selecting an accountancy service, take a step back to understand what you really need from them. Are you simply looking for someone to handle your tax returns, or do you need a more comprehensive service that includes bookkeeping, payroll management, financial planning and business advisory?
For businesses in construction, engineering and tech, there are unique challenges. For instance, construction businesses often deal with complex subcontractor arrangements and need guidance on VAT implications under the Construction Industry Scheme (CIS). Engineering firms may face issues related to capital allowances on significant investments in equipment, while tech businesses often require advice on research and development (R&D) tax credits. An accountancy firm that has experience in these sectors will be invaluable, offering tailored advice and support.
The importance of industry experience
When choosing an accountancy service, industry experience is key. A firm that understands the specific challenges and opportunities within your sector will be better equipped to offer relevant advice. For example, our practice has extensive experience working with construction companies, engineers and tech businesses, giving us a deep understanding of the financial intricacies within these industries.
For instance, in 2024/25, the R&D tax credit scheme continues to be a significant opportunity for tech businesses. However, navigating these claims can be tricky if your accountant is not familiar with the specifics. Similarly, understanding the intricacies of the CIS can make a considerable difference in the cashflow management of a construction business. An accountant with sector-specific knowledge can help ensure that you’re taking full advantage of these opportunities while remaining compliant with the latest regulations.
Services offered: More than just numbers
It’s easy to think of accountancy as just “number crunching”, but the right accountancy service should offer far more. Look for a practice that provides a comprehensive range of services that can grow with your business. This includes bookkeeping, management accounting, tax planning, payroll and compliance services.
Moreover, consider what additional support they can provide. For example, if you’re a growing tech business, will they assist with financial forecasting and fundraising efforts? If you’re in construction, do they offer advice on project-based accounting and managing CIS deductions? A good accountant should act as a partner to your business, helping you plan for the future and navigate any challenges that arise.
Technology and modern accountancy practices
In today’s business environment, embracing technology is no longer optional – it’s a necessity. When choosing an accountancy service, consider whether they utilise modern technology to streamline processes and improve accuracy. Cloud accounting software, for example, allows you to have real-time access to your financial data, making it easier to manage cashflow and make informed decisions.
For the 2024/25 tax year, businesses are expected to comply with the latest Making Tax Digital (MTD) requirements, which mandate the use of compatible software to maintain digital records and submit VAT returns. Choosing an accountant who is adept at using cloud-based solutions can ensure that you’re fully compliant with MTD and can help automate many of the routine tasks that take up your time.
Transparent pricing and value for money
Cost is always a consideration when choosing an accountancy service, but it’s important to look beyond the headline figures. Transparent pricing structures are crucial. Ask potential accountants whether they offer fixed fees or if you’ll be billed by the hour. Understand what’s included in their service package and whether there are any additional charges for services such as tax planning or advice.
Remember, the cheapest option isn’t always the best. Value for money is about getting the right level of service for your business at a fair price. An accountant who provides proactive advice, helps you save on tax, and supports your business growth is worth the investment. For example, effective tax planning for the 2024/25 tax year could save your business a significant amount, easily offsetting the cost of hiring a professional accountant.
Client testimonials and reviews
Finally, don’t underestimate the power of word of mouth. Look for testimonials and reviews from businesses similar to yours. Hearing about the experiences of other business owners can give you a clearer picture of what it’s like to work with a particular accountancy firm. This is particularly important if you’re in a specialised industry like construction or tech, where specific expertise is crucial.
Ask potential accountants if they can provide references or case studies. A reputable firm will have plenty of satisfied clients who are willing to share their experiences. Positive feedback from similar businesses in your industry can be a strong indicator that you’re making the right choice.
Wrapping up
Choosing the right accountancy service is about finding a firm that understands your industry, offers the right range of services, and provides value for money. As we head into the 2024/25 tax year, it’s crucial to have an accountant who is not only experienced and knowledgeable but also aligned with your business goals.
By taking the time to evaluate your options and considering the factors outlined above, you can find an accountancy service that will support your business now and in the future.
Looking to switch accountants? Contact PBA Accountants today.