So you\u2019ve come a long way from keeping a hodge podge of receipts in a box under your desk. You know that you need to take your accounting to the next level by working with an accountant, but do you need a sole practitioner or a practice? Or maybe a bookkeeper \u2014 but you\u2019re not quite sure, because don\u2019t bookkeepers just provide the same services as accountants? If the whole process of finding an accountant has got you overwhelmed, we\u2019re here to help.<\/p>\n
Here\u2019s our guide to the three main types of accounting options for your small business:<\/p>\n
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A sole practitioner is an accountant who works by themselves, handling potentially all the financial needs of their clients. They can do loads of different things for your business, including compliance work (such as filing your statutory accounts, VAT, and other tax returns), give you tax advice, answer any questions you might have about your finances or your financial future, ensure that you claim all your allowable costs, and even give you advice about your business structure.<\/p>\n
Pros:<\/strong><\/p>\n You may get much more personalised service from a smaller firm, and some smaller firms are very specialised, which can be good if you only need one specific service. Also, a solo practitioner may be able to provide you with service that\u2019s more tailored to your business which you might not get with a bigger firm.<\/p>\n Cons:<\/strong><\/p>\n A solo accountant might not be able to handle all of your accounting needs, especially if they only specialise in one type of service. And while all accountants must be certified, there\u2019s no absolute guarantee of service with a sole practitioner, whereas a larger practice has specific hiring standards. Finally, if it turns out that you and your sole practitioner accountant aren\u2019t a good fit, you\u2019ll have to start all over with another accountant, whereas in a bigger firm you could usually just switch accountants.<\/p>\n <\/p>\n There are also larger accounting practices made up of teams of accountants and sometimes other professionals too. They can generally provide any service that a sole practitioner can, and may be able to provide more specialised or large scale services, like international financial management. Many larger firms also have auxiliary services, such as business process outsourcing, logistics, or even human resources management.<\/p>\n Pros:<\/strong><\/p>\n Whatever your accounting needs, chances are there will be someone at a larger practice who can take care of them. Bigger firms may also have experience working with different types of clients, which can mean they\u2019re better suited to meet specific needs.<\/p>\n Cons:<\/strong><\/p>\n You may get less personalised attention at a bigger firm, and you may pay more. Additionally, you may have to work around pre-specified packages or services, which means you might end up paying for things that you don\u2019t really need.<\/p>\n <\/p>\n A lot of people think that accountants and bookkeepers provide the same services, but actually, they focus on different areas of your finances. While an accountant can analyse what\u2019s going on with your finances and give you advice about what to do (among many other things), a bookkeeper focuses more on the day to day finances of your business. This includes things like processing invoices and similar transactions, maintaining payroll, and reconciling accounts.<\/p>\nLarge practices<\/h2>\n
Bookkeepers<\/h2>\n