Thinking of a new accountant service that will have a service more in-line with your needs? Why not switch contractor accountants? We examine five key reasons why contractors change their accounting provider.
Having an accounting provider in place is vital in ensuring that a business can operate sufficiently. Having the right accountant that works for you is very important in ensuring that you utilise your company income correctly. We speak to numerous contractors every day who are looking at switching their accounts away from their accounting provider. Most we talk to have had bad experiences or require more from their current accountant, so we have decided to look at 5 of the most common reasons contractors look at switching.
Not receiving a personal service
Most contractor accountants provide a remote online service, meaning that clients will rarely sit with their accountant face-to-face. Because of the busy lifestyle of an independent contractor, the old-fashioned accounting model no longer fits the profession, and having an online provider using online technology is very common. Regardless of whether you speak with your accountant via email or on the phone, the importance of good customer service should never be forgotten. A common reason for clients looking to switch is because of poor customer service and a lack of that personal touch. Having a dedicated point of contact is vital and having a clear line of communication with your accounting provider should be the very least that a client should expect from their accountant.
Paying too much
Keeping a tab on outgoings and costs is essential in maintaining a healthy bottom line for your Ltd company. A common reason for clients switching accountants is because they feel that they are paying too much for the service that they are receiving. In the accounting world, Ltd company accounts for one-man band contractors are not overly complicated, so contractor accountants should not be charging extortionate fees for the service they are providing. It is often beneficial to look at the market prices and ensure that the cost that you are paying is competitive.
Not having access to an accountant
One of the perils of using an online accounting provider can be having access to trained professionals. When discussing important accounting factors such as tax planning, salary/dividend strategy and company structure, having direct access to an accountant is invaluable. Many contractors have expressed regret that they never asked whether they would have access to an accountant before signing up with their contractor accounting provider.
The accountant isn’t a contractor specialist
When choosing a contractor accountant, it is advised that you make sure that the accounting provider you are considering understands the nature of your business. Being a Ltd company contractor makes your needs unique to someone operating via an SME or more substantial business. Many contractors we liaise with switch over from high street or local accountants because they do not fully understand a contractor’s needs. Expertise in contractor specific areas such as IR35 is vital when choosing the right accountant.
Their processes are too complicated
When appointing an accountant, you are putting your trust in someone to assist you in the set-up, taxation, bookkeeping and accounting support for your Ltd company. As you will not be an accountant yourself, you need to ensure that whoever you choose to support you, has not only the knowledge and expertise but the right systems in place to make running a Ltd company as seamless and straightforward as possible. Many clients switch contractor accountants based on their systems being either too complicated or too simplistic. Several accountants provide third-party online software that requires extensive manual intervention to update and input data into, and some still use outdated spreadsheets. Most contractors seek a simple system where the accountant takes care of the administrative burden while still giving the contractor full control and full visibility.
How to Switch Accountants
QAccounting welcomes any contractor looking to switch from their current accountant and can provide a complete switching service as part of our monthly packages. Our accountants will liaise with a contractor’s previous accountant on their behalf and ensure that their accounts are transferred over swiftly and seamlessly.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )
Accounting for Limited Company Property Investments
It can be a complex decision for clients when it comes to determining how best to utilise existing Contractor Limited Company funds in a Property Investment Company