Checking the credentials is as vital as any major recruitment decision, says financial consultant Adrian Goodman.
FOR SMALL and medium-sized enterprises, the role of an accountant can be crucial. A good accountant does more than merely balance the books; they can provide insights that drive business growth, ensure compliance with regulations and help manage risks.
However, not all accountants are created equal.
Accountants come with varying levels of experience. Some might be newly qualified or not yet qualified while others have decades of industry-specific experience.
An accountant with extensive experience in your particular sector can understand the unique challenges your business faces. Conversely, a less experienced accountant might be more affordable but may not provide the same depth of insight.
Credentials can also be a misleading metric for those who do not understand them. There are various educational routes available to aspiring finance professionals and the array of acronyms used to denote levels of qualification can be daunting to those unfamiliar with them.
Here is a breakdown of just a few of the common qualifications and what they signify:
- AATQB (Association of Accounting Technicians Qualified Bookkeeper) Indicates proficiency in bookkeeping but not necessarily experienced in the finer points of accounting.
- ACA/ACCA (Associate Chartered Accountant/Chartered Certified Accountant) These are rigorous qualifications denoting expertise in all aspects of accounting, auditing, taxation and financial.
- CIMA (Chartered Institute of Management Accountants) Focuses on management accounting, making these accountants ideal for businesses needing detailed financial planning.
- FCMA (Fellow Chartered Management Accountant) A senior-level qualification within the Chartered Institute of Management Accountants, indicating extensive experience and expertise in management.
It is not just a case of finding a qualified accountant either. You need to think about the type of accountant your business needs.
Just as solicitors tend to gravitate towards certain areas of law, accountants often specialise in different areas and some savvy businesses will even change accountants according to the evolving goals of the business.
At PPX Consulting, we recommend approaching the appointment of an external accountant in the same way as you would manage the recruitment of an internal employee. After all, a good accountant may be with you for many years and become an integral part of your business.
I suggest the following steps to ensure you make the right choice:
Interview multiple potential accountants Ask about their experience, qualifications and areas of Give examples of challenges your business is likely to face and see how they would manage them.
Ask for references Just as you would check references for a new hire, ask for references from existing Most accountants will be happy to offer this.
Seek a second opinion If possible, draft in another finance professional to give their opinion on your shortlist of
Do not be driven by price Too many business owners view their accountant in the same way as many of us view car insurance, focusing on the premium rather than the A good accountant could end up saving you money as opposed to being a net cost so focus on value rather than price.
The importance of vetting an accountant cannot be overstated. The right accountant can be a strategic partner, providing optimal support and driving your business forward.
Treat this process with the same care and consideration as any key recruitment decision, and your business will be well-positioned for success.
Adrian Goodman is managing director of PPX Consulting.