If you are starting out as a contractor for a limited company, your most important advisor in your contractor career may be your accountant. Here's a look at the top things to consider when choosing the right contractor accountant for your business.

1. Make sure your accountant is an expert in contractors. Only an accountant firm that is familiar with how the contractor business works will understand how they go about their work. Specialists understand how the payment cycle works and the ins and outs of certain tax laws such as IR35, Managed Service Companies and Agency Workers Regulations.

2. How much does an accountant charge? In most cases, a fixed monthly fee will cover all of your accounting and correspondence with HMRC and Companies House. Prices vary greatly from one firm to the next, so be sure to compare their fees with similar ones.

3. Is there a set up fee? There may be an initial setup fee that includes registration with Companies House and initial administrative tasks. Some companies may include these setup fees in the regular monthly fee.

4. check if the company is recognised by a UK professional accountancy body such as ICAEW (Chartered Accountants), ACCA (Certified Accountants) or ICAS (Scotland).

5. Does the accountant offer online capabilities? Online accountancy is rapidly gaining traction, so make sure you know exactly how online capable your candidate accountant is. Do they offer full online access and allow you to view your accounts 24/7, or do they simply allow you to submit expenses and documents online?

6. How knowledgeable is the accountant about tax laws that may affect this industry? Most importantly, is their knowledge of the Intermediaries Act (IR35) - there is a big difference in take-home pay between those who are caught by the IR35 regulations and those who are not.

7. Choosing the right company according to your business requirements can be a daunting task. The cyberspace is filled with different types of contractor accountants who offer reasonable services to both large and small businesses. You need to choose a reputable and well known company as per your business needs and requirements. Stay assured that you will not be disappointed.

8. When it comes to hiring a contractor accountant, prior experience with the relevant company matters a lot. Check out the list of major clients of a particular firm. In fact, you can refer to the testimonials of those clients to make a well-informed decision.

8. The services of companies that offer bolt-on equipment hosting are very expensive. It embodies professional indemnity and business liability insurance cover, IR35 contract review. Check the cost of the service before buying extra features.

However, what you should do is to thoroughly research the market scenario beforehand. It will enhance your chances of getting the best and most functional services.
Disclaimer: Information on this site is in no way meant to replace the advice of a professional. Please ensure to fact check and acquire professional help regarding all information on this website.