Why your reasons for sticking with your bad accountant aren’t good for business
January is as good a time as any to re-evaluate your accountant. It’s the time of year most people do. Whatever your reason may be – whether they’ve been slacking recently or have made too many mistakes for your liking – you’re well within your right to make a change. After all, it’s your business – your livelihood.
Yet there are some who stick with the same accountant despite the poor service. Why? HMRC has already issued over 100,000 warnings to businesses who have missed the VAT deadlines in 2019. If it’s happened to you, the blame can likely be placed at the feet of your accountants. Don’t let your business be next.
If you’ve found an accountant you can afford, that’s excellent news. Small businesses often have so many overheads, especially during the early years, we can be reluctant to spend money on ‘luxuries’ like accountants.
But, obviously, sometimes for a low price you get low quality. It might be fine in the beginning, but as your accounts grow and change, you need an accountant who can keep up. This might mean paying a little more. Otherwise, you might end up paying it to HMRC anyway when you don’t get your tax return in on time.
You think you can’t afford anyone better
You might be willing to put up with constant blunders, poor communication, and late accountants because these are just small blips. Even if you wanted to find someone better, would you be able to afford it?
The answer is probably yes. Say you get stuck with a £10,000 tax bill you didn’t see coming because your accountant didn’t tell you in advance. You scramble around for the money, dredging savings accounts, dipping into personal savings, and draining your business dry to pay it. Wouldn’t it have been easier to spend this money on an accountant who completed your tax return months in advance and gave you ample time to prepare for the looming bill?
You like your accountant
It’s hard to let nice people down. But, it’s even harder to run a business. Being nice doesn’t pay the tax bill. You hire an accountant because you need something done. We can all be empathetic and like people for who they are. But if they are a detriment to your business, it is your responsibility as a leader to make the right choices. Even if they’re hard choices. You need to do it for your life outside of work, and for your staff too.
It’s hard to leave an accountant you like. But making continual exceptions for poor quality work may help your accountant, but it won’t help your business in the long-run. You’ll be putting yourself at risk of penalties and debt. So, this January, maybe it’s a new year for a new accountant.
Big Hand take care of our client’s accounting needs, offering ongoing support and emergency tax return services, keeping you in the clear when things go wrong. Don’t wait until it’s too late, get in touch on 0161 327 2911.