Ask these six questions to every small business accountant you are considering.

When it comes to boosting growth and productivity, technology is a vital tool that SMEs need to make the most of.

While the benefits of technology for businesses are obvious, many SMEs are slightly slower on the uptake of new developments in tech, perhaps because they lack some of the confidence and funding that larger corporations have at their disposal.

If you’re an SME owner, read on to find out how embracing different types of technology can help your business flourish.

Boosting collaboration and creativity

As a small company, idea sharing and working in a communal way is one the best things that you can do in terms of coming up with new and dynamic ideas for your business. Luckily, there are a number of software tools you can use that make this a lot easier.

Programs such as Basecamp and Zoho allow you to discuss and share tasks amongst your employees in one place, meaning that you can upload work or ideas and everyone can get stuck into them at once. These types of software tools also make project management much easier as you can assign and delegate work, create to dos and tick of tasks once they have been completed.

Improving your digital marketing

Ensuring that your digital marketing campaigns are up- to scratch and pertinent to your audience is vitally important as an SME. They will ensure that consumers continue to engage with you because they are excited by the content that you are putting out there for them to enjoy.

A survey by Animoto revealed that 64% of consumers said that watching a marketing video on Facebook influenced their purchasing decisions, so why not consider using technology to create your own video content that can be used to promote your brand or a new product and service that you are offering?

If you don’t have any experience doing this, don’t worry. You could always just start small and use free video editing apps on your phone to play around with effects are visuals. Once you find your feet you can move on to using more advanced software tools, such as Adobe Premiere. 

Helping with bookkeeping and accounting

It may seem like a dull part of what is involved in running a small business, but how can you expect to grow if you don’t have your finances in order?

Make use of software tools such as QuickBooks and Freshbooks, which will ensure that your accounts are in order and helps with invoicing and payroll. 

When it comes to managing your finances as an SME, hiring the right accountant is imperative to your success.

An effective accountant will give you insights into how you can improve your bottom line and will be able to recognise risks that could potentially harm your industry.

Sometimes though, professional relationships with accountants can turn sour and it is necessary to look for someone else to handle your finances.

But how do you know when it times to turn your back on the old and start looking for a new accountant? Read on to find out.

You’re paying too much for their services

As an SME, especially one that is in its early stages, you will always be looking for ways that you can reduce your outgoings to save money. While having a good account is necessary, you want to make sure that you aren’t paying over the odds for their services. If you feel as though you are, consider shopping around and looking for an accountant that can offer a number of packages that can fit in your businesses needs.

Deadlines are frequently missed

With regards to your finances, especially in terms of tax implications, it’s crucial that deadlines are consistently met. Whether it is an internal deadline between you and your accountant or a tax return deadline, these need to be met to avoid any fines from HMRC. If you are finding that deadlines are consistently not met, it’s time to look for a new accountant.

Your accountant lacks the relevant experience

If your finances are going to run smoothly, it’s important to work with an accountant that has a lot of experience working with clients that are similar to yours. This will mean that they have the relevant knowledge to make informed decisions about your business and will also be able to forecast changes that might affect you.

Your accountant charges by the hour

Traditionally, this was the payment method used by accountants as opposed to agreeing on a fixed term rate. The only problem with this is, it may encourage your accountant to spend more time handling your finances and subsequently charge you more for the services. If you are choosing an accountant that charges in this way, ensure that you receive a predicted timescale for each job as this will help you to avoid being charged more than you should. 

When you go about hiring a new accountant, it is imperative that you ask them the right questions to gauge their experience and how well they will be able to get to grips with the way that your business works.

While some may think that all accountants work in the same way, smart SME owners know that this simply isn’t the case at all.

Read on to find out about the 6 questions you need to be asking your accountant now.

How long have you been in business?

Coherent finances can make all the difference to your SME, so an accountant that has been in business for a number of years and has relevant experience is going to be much better for you than one that is just starting out. Ensure that their portfolio aligns with your business- if they have worked with companies of a similar size and industry to your own, even better.

How do you communicate with your clients?

When it comes to managing money, communication is key and you need to make sure that you are on the same page as your accountant from the get-go. Do you want to hold regular face to face meetings with them or would you prefer everything to be handled electronically? Whatever your preference is, be sure to have this conversation early on so you can establish what works best for both parties.

How are you going to go about improving my bottom line?

The role of an accountant is to use all the means at their disposable to minimise your tax exposure. Be sure to provide the accountant with information regarding your current financial situation. They will then need to study this and present you with plausible ways that you can go about retaining more of your money each month.

Will my account be handled by one person?

Ensuring that your account is only managed by one person is going to result in more consistent reporting and will mean that you develop a better relationship with your accountant. A good firm will know the importance of this, so be sure to ask this question during your initial meeting.

Do you have references?

Would you ever hire a new member of staff without first checking their references? The answer to this is hopefully no, and the same should be true when you are shopping for a new accountant. You need to hear from other businesses about their experiences of working with a particular accountant. If they have developed a good relationship and experienced financial success, it’s likely that you may as well.

What do you think are the most significant risks to my industry?

This is a really important question as it will help you to determine how proactive an accounting firm is. If they are able to recognise potential risks, it’s likely that they are in the know and will be able to steer your firm in the right direction.