Choosing the best accountant | PayStream

Look for an accountancy service that suits your requirements

When you decide to set up your own limited company, you become a director of a company and have statutory obligations and responsibilities. Some directors prefer to have a more comprehensive accountancy service, whereby a dedicated team of accountants are on hand to prepare your company returns and bookkeeping. Others prefer to have a lighter touch and do some of the accountancy themselves. Whichever route you choose, ultimately you are responsible for managing your company and meeting your tax and accounting obligations.

Ask yourself what is important to you? Would you benefit from having a dedicated accounts team who provide a safe pair of hands to help with limited company accountancy along with advice on tax related issues? Or are you happy with less support and do more of the accountancy and book-keeping yourself? Once you’ve answered those questions, you can begin to narrow your search and identify the ideal accountancy service for you. At PayStream, we offer a range of accountancy services which could be of real benefit to you. 

Ask your network for recommendations

A recommendation from someone you trust can be invaluable. If any of your contacts are running a business, ask them who their accountant is and whether or not they are happy with the service they receive. You’re more likely to receive an honest and unbiased review by doing this. According to a Nielsen study, 92% of consumers believe suggestions from friends and family more than they do any paid advertising.

As well as that, sometimes getting a recommendation from a friend can be financially rewarding. Many accountants offer incentives for referring people to their services, whether that be in the form of a voucher or cash bonus. Here at PayStream, you can earn a member referral reward each time you recommend someone to any of our services. Click here for more info and T&Cs. We'll also ensure the service is right for your friend or family and tailored to their individual circumstances.

Choose a provider that has a range of services so that they can fully support you 

You may have heard of IR35 or the Off-Payroll working legislation. Both pieces of legislation refer to recent changes whereby the responsibility for determining a contractor's IR35 status has moved to the end client, with the person paying the limited company (usually the agency) being responsible for deducting the necessary tax, if IR35 applies.

The impact of this shift in responsibility is that agencies and end clients are now more cautious of working with off-payroll workers, outside IR35. So you may find yourself working on a contract that falls inside IR35. If that does happen then choosing to work through an umbrella company is probably the best option for you. That’s because it’s one of the most hassle free ways to work. You can be set up in a matter of minutes and there are no unexpected tax bills as the umbrella company takes care of all of the necessary PAYE and NI deductions for HMRC. They also provide you with a record of continuous employment which can be great for mortgage or loan applications. For a full list of pros and cons, click here to view our benefits of working through an umbrella company guide.

Choosing a provider that offers both accountancy and umbrella company services means that they’ll be able to support you regardless of your IR35 status.

Compliance and accreditations

It may be tempting to choose the cheapest option, or one that is promising substantially higher take home pay than another. However, there is usually a reason why this is the case. Over recent years HMRC have been cracking down on tax avoidance schemes and those who engage with them, so we can’t recommend enough that you only consider accountants that operate compliantly. As appealing as it sounds to save a extra few pounds here and there, it’s really not worth the potential risk of an HMRC investigation and any subsequent fines. If it looks too good to be true, it probably is!

In order to pick a reputable accountant look out for those who are run by chartered accountants, we also recommend that you look at the company’s professional accreditations, such as the FCSA. They are the UK's leading professional membership body dedicated to raising standards and promoting supply chain compliance for the temporary labour market. In order to obtain FCSA membership, the provider needs to be independently audited by top industry experts in order to demonstrate the highest standard of compliance.

If you’re unhappy, don’t be afraid to switch accountants

You don’t have to put up with a mediocre service. If you’re receiving slow responses or are worried that your accountant is giving you inaccurate advice, then request to leave them and search for a new accountant. Some directors are under the impression that it’s time consuming and difficult to switch accountants but here at PayStream, changing accountants is easy. We'll facilitate the transfer and ensure that all of your company records are kept up to date.

So in summary, it’s really important that you do your research before deciding which contractor accountant to use. Once you’ve narrowed down your list, remember that compliance is key, as well as excellent customer service, value for money and their reputation within the industry. Good luck!