getting accountant anything i need to know?

[SLEE]

Right im taking the next step and getting an accountant but is there anything i need to know before choosing one?
I've had a recommend from a friend so hopefully they will be fine but it would be good know if  there is anything i should be asking

thanks

[sarahA]

Find out how much they cost, what that cost will cover eg. can you phone/email them with questions etc. What will they do for you etc. You're still only sole trading (I presume) so will they be doing your self assessment for you? How will they want your figures eg. spreadsheet. Some accountants will want you to use software that they use so if that's the case find out how much that will cost too.

Then you need to decide if the cost of the accountant is worth it. As a sole trader it's not hard to do your own accounts and if you do it right then the accountant isn't going to save you any extra money as they can't magic expenses out of nothing (besides their own).

[SLEE]

my main reasoning for considering using an accountant is not knowing what i can and should be claiming like computer equipment, travel expenses and some other things and i cant find anywhere online that explicitly states how and what you can claim

[sarahA]

I've sent you a nice long email on all of this, but at present you have an annual investment allowance of £50k with which you can claim up to 100% of your first year purchase of computers, furniture, equipment etc. providing the total doesn't go over this. Then in subsequent years you can claim 20% of the cost as a capital allowance as a writing down allowance (some reading)

This is set to change in April 2011. I think it was brought in during the recession to help businesses a bit. I'm guessing it'll go back to how it was before ie. 50% of the cost in the first year, 40% in the second year.

For travelling, train fares, bus fares, hotels and food purchased, if all in the name of the business are then expenses. For cars, note your mileage and you can claim 40p a mile. If you have a passenger in the car you can claim an extra 5p a mile per passenger.

[SLEE]

thanks Sarah!!

[Shirker]

I chose one once on the basis of he wore a dickie bow when I met him. He turned out to be an bum. This is not a good selection tool for accountants.

[Matt]

thanks Sarah!!

get one who does KashFlow - and then they can use the info in that.

[Stealth]

Depending on your profits and money-you-want-to-hide, it might be worth ALSO speaking to someone different who deals with taxation, who will be in a better position to advise on tax avoidance (not evasion!). Accountants will always want to do things the cleanest way as their name goes on the accounts along with your own, but a tax advisor will be able to tell you so much more ... not that I'm condoning anything illegal/dodgy/grey etc.

I sometimes speak with a tax advisor who is an ex HMRC inspector, he's good at advising how to get the best value for money when withdrawing salary, paying personal bills, writing off tax for whatever reason and also tells how not to do it.