Amanda Morrall talks to Bryan Simpson about how to go about finding a reputable accountant that meets your small business needs and goals

By Amanda Morrall

What should you look for in an accountant and what should you expect to get out of the relationship?

Bryan Simpson, of Boutique Financial NZ , suggests you go about your search as carefully as you would finding a doctor.

Your small business is your baby so you shouldn't trust just anyone with its financial end of year well-being.

With the emergence of new do-it-yourself software systems, and franchises offering accountancy services with little or no expertise to back it up, Simpson encourages small business owners to do their research before rocking up the nearest accountant with a shoebox full of receipts.

"It's tricking finding an accountant because you don't know being a non-accountant whether they are good or bad.''

As a starting point, Simpson suggests getting a good referral by someone reliable who has used their services in the past. 

Secondly, pick an accountant with the expertise for your type of business. So for example, choosing a small business specialist, if you're running a small business, versus, someone with international financial reporting expertise.

"Definitely go with someone who suits the size and style of business you're in.''

So what can you expect to get out of a chartered accountant versus a regular accountant?

Chartered accountants are pricier because they have minimum professional standards.

"They have seven years of training, they are university qualified, and then they are required to do at least 40 hours of continued professional training a year."

There are no formal training requirements for run of the mill accountants which can be a hazard of using one whose experience and background you haven't researched.

"So you're taking a risk unless you know they have the skills but it's hard to know if they have the skills if you don't have the ability to judge those skills.''

With recent break-through technologies and accounting software, one might question whether it's really all that necessary to have an accountant.

Simpson is a fan of smart technology but argues a well qualified accountant will prove their value by putting in place checks and balances that a small business owner might not otherwise implement and also offering guidance along the way.

"Good technology will save you a lot of money and it frees up the accountant to give you proper advice."

Simpson said he encourages year-around communication with his clients.

"We'd like to have more of a relationship then just 'Hi: sign your tax return, this is your refund or the tax you have to pay, goodbye.'"

Simpson said open lines of communication are critical.

"Talking to your accountant makes a big difference so you know what's coming up and so you can budget for it and all those sort of things which make a big difference to stress levels around tax payments."

"Look for an accountant who will understand your business. There are only so many tax questions you need answered and there are only so many financial reporting issues you may have. You want to look for an accountant who understands your business and then you want to have regular communication."

Simpson said a trend in accounting right now is for accountants to form part of an advisory board to help small businesses see the bigger picture. He says this can be more economical than having a full-time accountant.

"Think about having them together with your marketing expert, with your HR person, to sit down and talk about your business on a bigger scale than just about year end accounts."