Following on from my post two days ago [Cash flow, Financial Forecast, NPV, CAPM, Risk Analysis %$£* I just want to run a business! - 10th June 2008], I had a few meetings with some Accountants today. As my Innovation and Business Enterprise company is a start-up I thought it best to get an accountant on board at a very early stage. Every business needs a good professional team behind them to help support the business. My way of choosing a firm I think is reasonably sensible, meet with four firms and make a decision as to who I think I can work best with and who could be beneficial to realising the vision.

You see in my opinion a lot of business people forget this, an accountant isn’t just the person who prepares your annual accounts every year and keeps the tax man or woman off your back, but they are really an integral part of your business from an organisational perspective. And if you are a small business, you need to ensure you pick the right one more than ever. Before you start looking make sure you have a selection, I like the number four, so I chose 4 different firms, 2 I researched locally, 1 I got as a referral and the other, well I saw their signage and just walked into their office (nothing like some off the street potential business right). I also made sure they were all local, this is a personal thing for me as I want to feel like I am giving business to the local community. I have a simple and logical five point check list for accountant selection (Please note this is a list based on my opinion please consult professional advice before you make a decision abillionaire will not be held responsible for any losses – lol- there I go again with my “health warnings”):

1. Rule no. 1 when picking an accountant – make sure they have some sort of track record, but are not the sort of firm that have remained stagnant over time. You want a dynamic proactive firm.
2. Leading on from these dynamic and proactive characteristics, you need a firm that is really on the ball. Tax & Company Laws change very regularly, I am talking annually in some cases, so you need a firm that is grasping this information quick enough and relaying it to you in a manner you understand.
3. Keep it professional boys and girls. Sleeping with your accountant can be detrimental to your business. Remember the old rule “never mix business with pleasure”!
4. Trust. Big big big rule! You have to trust your accountant, they have the power to get the tax man or woman to investigate you and the power to make you bankrupt.
5. Make sure your accountant is well connected and creative (well from a financial perspective). Remember your network = your net worth, we all know that. So a well networked accountant, who looks after other high net worth individuals could possibly mean investors or clients for your business through referral. And the creativity part is simple, there is a reason multi millionaires, billionaires and corporations pay less tax in relation to what they actually earn, its called creative financing / accounting. Nothing illegal about it by the way.
6. The last sentence above is very very important. I cannot stress this enough, never ever go with a dodgy accountant, and if you do for whatever reason chose an accountant that turns out to be dodgy or unethical, severe ties with them as quick as possible and ensure there is a huge gulf between you. Because sooner or later he or she will get caught and when he or she does that tax man or woman will start investigating every single one of their clients, and that includes you.

So we got the accountants blog post done and dusted. Tomorrow, my blog will be one week old, so happy birthday to me.

I still haven’t chosen an accountant yet by the way, now I am going to digest everything they have said and let them stew for bit, also it will be interesting if any of them try and follow up with you, that is always a sign that they want ou business. But then again accountants are accountants not sales people, but the truth is they are still in business and every business needs to be able to sell itself!

I wish you wealth, good health, peace and happiness.

abillionaire