The Top 3 Mistakes Contractors Make When Choosing an Accountant
As a contractor, choosing an accountant is a crucial decision that can significantly impact your business’s financial success. While hiring an accountant may seem like a simple task, making the wrong choice can lead to costly mistakes that can put your business in jeopardy. In this article, we will discuss the top three mistakes contractors make when choosing an accountant and provide practical tips to help you avoid them.
Not Considering the Accountant’s Expertise in Contractor Accounting
One of the most common mistakes contractors make when choosing an accountant is not considering the accountant’s expertise in contractor accounting. Contractor accounting is a unique field that requires specialized knowledge and experience. Unfortunately, not all accountants are familiar with the ins and outs of contractor accounting, and hiring an inexperienced accountant can lead to costly mistakes.
For example, an accountant who is not familiar with contractor accounting may not be aware of the tax deductions available to contractors, resulting in missed opportunities to reduce your tax bill. Additionally, an inexperienced accountant may not be familiar with the unique invoicing and payment structures used by contractors, which can lead to incorrect financial statements.
To avoid this mistake, it is essential to choose an accountant who has experience working with contractors. Look for an accountant who has a track record of successfully managing the financial affairs of contractors and who is up-to-date with the latest tax laws and regulations.
Choosing an Accountant Based Solely on Price
Another common mistake contractors make when choosing an accountant is basing their decision solely on price. While it is understandable to want to keep costs down, choosing an accountant based solely on price can be a costly mistake.
When it comes to accounting, you get what you pay for. A cheap accountant may not have the expertise or experience necessary to handle your financial affairs correctly. Additionally, an accountant who charges low fees may not provide the level of service you need to ensure your financial success.
Instead of choosing an accountant based solely on price, look for an accountant who offers a fair price for their services and who provides value for money. Remember, the cost of hiring an accountant is an investment in your business’s financial success, and it is worth paying for quality service.
Failing to Check References and Credentials
The third mistake contractors make when choosing an accountant is failing to check references and credentials. Hiring an accountant is a significant decision, and it is essential to ensure that the accountant you choose has the necessary qualifications and experience.
Before hiring an accountant, be sure to ask for references and check them thoroughly. Speak with other contractors who have worked with the accountant and ask about their experience. Additionally, check the accountant’s credentials to ensure that they are licensed and have the necessary qualifications to handle your financial affairs.
Tips for Choosing the Right Accountant
Now that we have discussed the top three mistakes contractors make when choosing an accountant let’s look at some tips for choosing the right accountant:
- Look for an accountant with experience working with contractors.
- Choose an accountant who offers a fair price for their services.
- Check references and credentials before hiring an accountant.
- Look for an accountant who is up-to-date with the latest tax laws and regulations.
- Choose an accountant who provides personalized service and is responsive to your needs.
Choosing the right accountant is crucial for the success of your contracting business. By avoiding the top three mistakes contractors make when choosing an accountant and following the tips we have provided, you can find an accountant who has apropriate expertise and experience to handle your financial affairs and help you achieve your financial goals.
Should I Hire A Contractor Accountant?
Our specialist team of expert and highly qualified contractor accountants are here to deliver everything you need to set up, operate and grow your business. Operating your own contracting business is highly rewarding, but it can also be financially beneficial to undertake.
However, amongst managing projects, staffing, organising premises and developing your service offering you will also have to deal with the daunting and difficult task of managing your company’s finances. Make running your business easier with MJ Kane & Co Accountants.
Learn more about our Contractor Accountants Service
Contractor Accounts FAQs
What are the benefits of hiring an accountant for my contracting business?
Hiring an accountant can provide many benefits for your contracting business, including accurate financial statements, tax planning and preparation, and the ability to focus on your core business activities.
How can I find an accountant with expertise in contractor accounting?
You can find an accountant with expertise in contractor accounting by conducting research online, asking for referrals from other contractors, or consulting with professional associations for accountants.
What questions should I ask when checking references for an accountant?
When checking references for an accountant, you should ask about their experience working with contractors, the quality of their service, their responsiveness to client needs, and their ability to provide value for money.
How much should I expect to pay for accounting services as a contractor?
The cost of accounting services for contractors varies depending on the complexity of your financial affairs and the level of service you require. It is important to find an accountant who offers a fair price for their services and provides value for money.
How often should I meet with my accountant?
The frequency of meetings with your accountant depends on your business’s needs and the level of service you require. However, it is recommended to meet with your accountant at least once a quarter to review your financial statements and discuss any tax planning opportunities.
