Who are tax accountants?
Tax accountants are accountants that specialise in interpreting and adhering to taxation rules and regulations in accordance with HMRC guidelines. During tax season, tax accountants can assist you by timely filing your taxes and guiding you on how to lower your tax bills. They must stay up-to-date with the recent changes in tax regulations to ensure that you pay the correct amount of tax and avoid fines.
They can help you save money by allowing you to make most of the available tax deductions and reliefs. Tax accountants can also help you understand the complex tax system and prepare an annual tax plan to ensure that you stay on track to meet your financial goals.
Tax advisors can prepare accurate tax reports and suggest solutions that can help you to defer or minimise your tax liabilities while boosting your profits.
Tax accountants have a thorough understanding of tax standards and can assist you in assessing whether your financial records comply with the relevant tax laws and regulations. They can also help you with audited financial statements.
Qualifications of a tax accountant:-
Anyone can start a tax advisory or accounting, even if they lack professional qualifications or experience. However, appointing a tax advisor should be done with caution.
Although it is not required by law for an accountant to have any credentials, you should ensure that yours has been certified by one of the recognised UK bodies (like ICAS, CIMA, ICAEW, or ACCA). Accountants who have completed necessary credentials and are professionally qualified will be supervised by their professional organisation and will maintain their knowledge and skills up to date.
Things to consider while hiring a tax accountant:-
Tax accountants can use their knowledge of tax law to devise strategies and techniques that will result in you paying less tax than you would otherwise. They will assist you in utilising applicable allowances, relief schemes, tax-free rates, and other options to ensure that you only pay what is legally required.
To find tax accountants who are suited for your needs and requirements, you should ask the following questions:-
- What are their fees?
The fees charged by all tax accountants are not the same. Thus, it is critical to weigh their charges against their services and how those services add value to your company.
- Do they have prior experience in the same industry as your business?
Knowing whether the accountants have experience in the same industry as you can help in determining their effectiveness. It can assist you in evaluating the accountants’ industry knowledge and experience and whether they are capable of dealing with the risks and opportunities that your business encounters.
If the accountants have relevant experience, they are more likely to be aware of any regulatory or allowance changes that may affect your business.
- What services do they provide as part of their fees? Are there any additional services that they offer?
You should inquire about the service they provide to verify that they can satisfy your requirements. You can determine how the accountants will bring value to your business daily and whether the services they give are worth the costs they charge.
You may want to broaden the scope of services provided by your tax accountants as your business scales up. Finding out whether or not your tax accountants have the necessary expertise can save you from changing accountants as your business grows and expands.
- How will they communicate with you?
It’s critical to hire accountants that can communicate effectively with you over the phone, via video conferencing, or in face-to-face meetings.
When it comes to interacting with clients and responding on time, tax accountants should be meticulous and rigorous.
- Have they been suggested to you by someone you know?
When you hire an accountant who has been recommended by someone in your network, it is much easier to trust that accountant with your financial data.
- Are they members of a professional organisation that requires professional indemnity insurance?
Some accountants don’t even have indemnity insurance. If your accountant provides you wrong advice or doesn’t manage your accounts properly, you could end up losing a lot of money.
Thus, it’s crucial to check whether the accountant is covered by professional indemnity insurance for situations like misuse of data, a breach of confidence, or the loss of documents, among other things. You’ll be safer if you know what kind of protection your tax accountant has.
- What is their location?
It doesn’t matter where your accountant is located because much of their work can be done remotely. But regular face-to-face meetings can be far more fruitful in gaining additional value from your accountant because you can discuss your business in greater depth and benefit from general business advice from your tax accountant.
If you want more than essential accounting services, it is best to hire an accountant within travelling distance.