You might run multiple businesses that benefit from specialist expertise, want to keep your bookkeeping and accountancy separate, or simply be in the process of transitioning from one firm to another.

That said, there are also good reasons why keeping everything under one roof can work better.

This article weighs up both sides to help you decide what’s right for your business.

What are the advantages of using more than one accountant?

Why might a business owner choose to work with more than one accountancy firm at the same time? There are lots of reasons, such as needing specialist support in one area of the business, or to keep different businesses separate.

Tap into specific skillsets where you need them

Perhaps you operate one business as a sole trader, and also own and operate a limited company. You might want to delegate each of your accounts to experts in these areas.

For some businesses it can be more complicated than that. For example, you might need an accountant who deals with Capital Gains Tax to help you with one particular income stream, or someone who specialises in R&D claims.

Keeping your accounting and bookkeeping separate

Accountants and bookkeepers carry out different roles – some business owners prefer to assign these responsibilities to multiple firms or contractors.

Making the transition

Some business owners will overlap the firms they work with for a period of time, as they transition from one to another.

The benefits of sticking to one accounting firm

Looking at the situation from the other side of the fence, let’s now explore why using one accounting firm at a time might be the preferred option. These are only general points though. Every business is different so your needs might not fit neatly into any of these!

More well-rounded knowledge of your business

When an accountant has full access to every part of your businesses, they have a much more comprehensive picture. This, in turn, allows them to advise you on ways to be more tax efficient across the board, and help you make more savvy decisions around things like spending, cost-saving, investments and recruitment.

You can avoid paying double fees

When you only work with one firm at a time, you only have one invoice to worry about paying. Your accountant might charge you for each business (because they’re doing more than one set of accounts), but may also offer discounts if you sign up multiple businesses for their services. Accountancy fees can vary, so do your research!

A more streamlined process

As with most processes in life, when everything is all in one place, things seem to run a whole lot more smoothly. Sticking to one accountancy firm at a time will lighten both your cognitive and admin-based loads.

Stronger relationship-building

Investing all your time and energy into one accountancy firm or accountant will bolster your professional bond with them. That’s not to say, of course, that you can’t have great relationships with multiple service providers.

How to find the right accountant for your business

Whether you’re looking to use multiple accountancy firms or put all your eggs in one basket, it’s essential to do your homework before making any final decisions.

Here are just a few of our top tips for finding the right accountant for you and your business:

• Read plenty of reviews online: There’s nothing quite like reading through client-generated reviews (rather than company-created case studies) to see real opinions.
• Set up an intro meeting: If you come across a firm or accountant that you like the sound of, set up a call to get a better idea of whether you’re going to get along.
• Check out their client base: Investigating which customers a firm or accountant typically works with will give you more insight as to whether they’re the right fit for you. If they work with other businesses in your sector, for example, you’ll know they have plenty of relevant experience and transferable knowledge.

 
Compare accountancy packages, or ask a tax question for free!

The post Can I Use More Than One Accounting Firm at a Time? appeared first on The Cheap Accountants.

Still, a breakup is never nice, and so you’ll want to be 100% sure you’re making the right decision before you go through with it. Here are 5 telling signs to look out for.

You’re paying too much overall

Having an accountant shouldn’t break the proverbial bank. If you find yourself struggling to stay afloat, there’s a good chance you’re being taken advantage of and/or overcharged.

You want to try and find an accountant that offers a variety of packages, ideally at a fixed monthly subscription with no extended tie-ins. Much like a significant other (to continue with the metaphor), your accountant should feel like a partner of sorts, someone who’s on your side and has your best interests at heart.

Read our guide to finding a cheap accountant.

Your accountant charges you for every piece of advice

Again, you ideally want your accountant to have your back, and this includes being willing to offer help or advice at no additional cost.

Access to ongoing advice from an expert in the field is one of the main perks of having an accountant (if not the main perk), and so it can be frustrating if yours seems happy to advise on an ad hoc basis but then springs an invoice on you for the extra work.

This type of relationship is simply not conducive to long-term success, as you don’t want to be second-guessing yourself about reaching out if you have a burning question that relates to your business.

Your accountant confuses you

The world of accounting is full of complicated terminology. As such, your accountant has a responsibility to simplify everything for you and put it in layman’s terms. This enables you to make informed decisions about your money (which is always nice).

Be warned, though: some accountants might try and keep you in the dark, leveraging their superior knowledge in an attempt to get you to blindly pay whatever they charge. This is plain wrong, and you shouldn’t put up with it.

Essentially, if you notice that your accountant isn’t trying to help with all the accounting jargon, that’s a major red flag.

Poor communication

In today’s fast-paced, increasingly online world, clear and swift communication is key. You shouldn’t have to chase for updates. In fact, your accountant should be actively working to anticipate your needs – as opposed to just waiting for you to ask questions. If this isn’t the case, it might be time to switch.

Outdated technology

Up-to-date accounting software is crucial for efficiency and accuracy. If your accountant is still relying on antiquated methods or isn’t familiar with cloud-based accounting systems, they could be holding your business back.

The solution is simple: switch to an accountant who moves with the times and can get you set up on the most current software on the market. This will streamline the whole process, making your life easier.

 
Visit our accounting support hub for more help, or to ask a free tax question!

The post 5 Signs It’s Time to Switch Accountants appeared first on The Cheap Accountants.