that can be done by professional contractor accountants. Mostly, to avoid mistakes in calculation it
is better to let them do this. Yes, it is true that you will have to pay some
extra penny for that, but trust me it is worth.
Contractors are employed especially for this task as
managing accounts, profits, losses and many other things is quite tedious.
Also, to maintain this tedious paper work and then recollecting them for reuse
is more tedious. If you own a business then how many tasks will you be doing on
your own? At the end you might feel the frustration of doing all these things
and so will hand it over to the contractor
If you are looking for a reliable accountant that
specializes in contractor accounting, then there are a few things you must
consider before you finally choose which one to use.
Whether you are new, or highly experienced to operating via
your own Limited Company, you must carry out due carefulness when selecting
your specialist contractor accountant. We have created 5 top tips for you to
1. Choose a
Make sure the accountant specialises in contractor affairs
and understands key issues relating to contracting, such as IR35. This
requirement is crucial, and will rule out most high street accountants.
2. Check their
Find out whether the accountant is registered with a
professional accountancy body, such as the Association of Chartered Certified
Accountants (ACCA), or the Institute of Chartered Accountants in England and
Wales. If they are not, then move on.
3. How big are they?
Accountancy firms vary in size enormously, and you should
choose one that suits your purposes. A larger practice might have thousands of
contractor clients, but may deliver a rather impersonal service. A smaller one
may deliver a more tailored service, but perhaps at a price. A one-person
practice might have all the key contractor accountant skills you require, but
might not be able to concentrate on your needs at busy times, such as in the
weeks before tax return deadlines.
4. Get references
Contractors should chat to fellow contractors and ask about
their experiences with different accountancy firms. References are usually one
of the best methods of judging which accountant is the right one.
5. Make sure they
A specialist contractor accountant will have a thorough
understanding of IR35 and how to tax plan and budget around the IR35 tax
legislation. Make sure the accountant genuinely knows all about IR35, and
hasn’t just added it to their list of services in the hope of attracting extra
business. Some accountants also offer contract reviews, but contractors should
ideally consult a legal specialist to assess their IR35 status.