We all know that in business we need accounts to sort out the dreaded tax man which means a once a year visit to 'the accountant'  so he can let you know the bad news.

If your usual experience with your accountant is a letter to request your books for a 'year end' a couple of years ago, more letters to chase you, a dig around to find bank statements and business papers, together with letters every now and again asking you to pay 'estimated tax' then you're not getting the best value for the fees you pay to your accountant, and so you should read more....

__We all know that in business we need accounts to sort out the dreaded tax man which means a once a year visit to 'the accountant'  so he can let you know the bad news.

If your usual experience with your accountant is a letter to request your books for a 'year end' a couple of years ago, more letters to chase you, a dig around to find bank statements and business papers, together with letters every now and again asking you to pay 'estimated tax' then you're not getting the best value for the fees you pay to your accountant, and so you should read more....Lets face it, we all know from dealing with our own customers that if we get the job done, when we say we are going to do it, with no unexpected 'extras' then we have happy customers and we make some profit.

Tip 1 - Get your records in on time
We all have that job that's never ready when the customer says it is, and so its phone call after phone call, re-scheduling other jobs to fit it in and generally messing your business around.

Its the same for your accountant, when they ask for your books they are working to a schedule, so if you don't get your books in on time, they spend time rearranging their work load and writing you letters to chase. This is wasted time that you pay for.

Tip 2 - Agree in advance what records you are providing
We have all been there, unexpected added extra's on services provided by plumbers, builders and all other trades. Its the same with your accountant, if you have agreed to provide 'fully reconciled and analysed ledgers which only require accounting adjustments for accruals, prepayments and depreciation' then you need to provided just that. Unfortunately along the lines of the well know saying about pregnant woman ' you can't reconcile a bit', its either reconciled and posted properly or not.

If you are unsure of what is needed then its always best to ask up front ............. it will cost you less in the long run.

Tip 3 - Provide what you agreed
It sounds the wrong way around but you want to do as much for your accountant as you can to get the best for your fees. At the end of the day whether its a fixed fee or charge by the hour, its all based on time spent. So if you can do more of the straightforward bits for your accountant, they have more time to spend giving you advice.

But, remember Tip 2 and make sure that you check what you are providing is what they need. Again, if unsure ask.

Tip 4 - Start at the end and work back
Have a look through your paperwork for the last set of accounts that your accountant sent (or hopefully search for the pdf copy) and look for expenses. You will find a maximum of 10 to 15 different types in the 'Proft and Loss Account',  so why do your records need 2 or 3 times as many expenses headings ?

The golden rule is to keep it as simple as possible, and find out about every number in your accounts. Even more importaant, if someone 'does the books for you', then its even more important to make sure that they know how the numbers in your records tie to the numbers in the 'year end accounts' . If they don't understand, then your paying them to to analyse your books one way, and your accountant to change them. (Remember Tip 2 ?)

Tip 5 - Speak to your Accountant
Now that they are spending less time 'bashing out your year end accounts for the taxman' use the time saved to get the advice that you really need for your business, and then you will get the most for your accounting fees.

Let us know if you have any other Tips and we will be happy to share them here.