Large accountants vs. smaller ones?

[Forbes Young]

Hi all,

I am looking for an accountant as I start IT contracting. A lot of the recommendations on here seem to be for larger accountant firms. Looking at these, they seem to be heavier on having "client managers" rather than accountants. Also, although they provide an online portal, these seem to be proprietary, so I'd be locked in if I ever wanted to switch.

I've come across Freeagent but there don't really seem to be many recommendations on here for smaller accountants who use Freeagent. Does anyone have any recommendations for accountants who use Freeagent? Also, is there really an advantage to using these bigger firms?

Two main things to look for in my view are:
1. how much net income do you have after using the accountant (eg if you pay an accountant £500 more a year than a competitor but by taking their advice you save £1000 more than you would have done with the competitor then its worthwhile paying more).
2. the method of operation eg online software vs spreadsheet vs accountant doing all of the bookkeeping: some clients prefer one to the other and find one easier to operate than the other - an accountant who gives you regular advice and can communicate effectively will make whichever method better.
Its best to go on recommendation if you are able to do so - many contractors make the wrong choice and need to switch accountants sooner or later. We have many clients coming across to us from other firms who are dissatisfied with how the previous accountancy firm operates.
So long as the service is consistently top class and reliable then going with a smaller accountancy firm or a main market player shouldn't make any difference.

[Dan@OrangeGenie]

Surely an accountant is as expensive as you make them?

You need to ensure you can have regular communication (at no extra charge) with your accountant and that you have a good understanding of the decisions you make.

[Alan @ BroomeAffinity]

You pays your money you takes your choice. After doing a bit of research obviously.

There are a lot of accountants (my firm included and many others who post in here) who are contractor specialists and therefore have the expertise you need, but are small enough to be able to provide the extremely personal service you crave.

[philip@wellwoodhoyle]

You can't generalise. Some big firms are good, some are poor. Some one man bands are good, some are poor. Either may or may not know enough about the contractor/freelancer market and IR35.

I've taken on clients from big and small firms. Accounts/returns prepared by some of the larger firms were truly shocking. Likewise those provided by other large firms were absolutely spot on.

At the end of the day, you have to take recommendations from people you actually know and who already use a particular firm. Don't take advice from strangers on an internet forum and don't take advice from people who get a kick-back or referral discount as they'll be biased.

What matters are people - The person who'll be doing the work and your point of contact. Doesn't matter how good the firm is if you get given the hopeless "client manager" who hasn't a clue.

[zazou]

Like I said in the other thread mentioned I chose a small one (PaperRocket) when I started out exactly because of the personal touch and have had nothing but good experience.
All my queries have been answered very timely and the information been of quality. To add to that Sarah is very proactive when it comes to all things related to accounting - which is important when you're still 'wet behind your ears' ;-)

Home - PaperRocket Accounting

[northernladuk]

No disrespect to the 'big' accountancy firms on here but I wouldnt touch them. Its a fallacy that only these know the contractor market.

Im still using the same accountant as when I was contracting. They are a relatively small firm, not cheap (but I did negotiate a 10% reduction of costs this year). Ive always been happy with the services they provide.

It maybe be a fallacy that ONLY these guys know the contractor market but it's certainly not completely true as a lot of small one man bands don't have a clue so that comment is only true up to a certain point. I had a one man local band and he left me in a right royal mess. I switched to a large company (SJD) and haven't had one complaint in over 7 years.

There are big companies with a few crap individuals and smalls one with amazing people running them. You have to do your homework. You might get a more personal service from a small company but a big one does have SLA's on call backs etc where small one could be a bit frustrating.

I'm pretty confident about my knowledge of my accounts so am happy to be churned as part of a big company but saying that they get back to me in a day on any issue I have.

Up to you to think about what's important to you and make a decision based on that IMO.

[JoeyD]

No disrespect to the 'big' accountancy firms on here but I wouldnt touch them. Its a fallacy that only these know the contractor market.

Im still using the same accountant as when I was contracting. They are a relatively small firm, not cheap (but I did negotiate a 10% reduction of costs this year). Ive always been happy with the services they provide.

^^ This.

I've used a 'small' family firm of accountants for 20 years. They were doing one or two man Ltd's long before IT contracting was popular. 'Specialist' contracting accountants seem, from the fees I've seen, to be a right royal rip off.

[BolshieBastard]

Hi all,

I am looking for an accountant as I start IT contracting. A lot of the recommendations on here seem to be for larger accountant firms. Looking at these, they seem to be heavier on having "client managers" rather than accountants. Also, although they provide an online portal, these seem to be proprietary, so I'd be locked in if I ever wanted to switch.

I've come across Freeagent but there don't really seem to be many recommendations on here for smaller accountants who use Freeagent. Does anyone have any recommendations for accountants who use Freeagent? Also, is there really an advantage to using these bigger firms?

No disrespect to the 'big' accountancy firms on here but I wouldnt touch them. Its a fallacy that only these know the contractor market.

Im still using the same accountant as when I was contracting. They are a relatively small firm, not cheap (but I did negotiate a 10% reduction of costs this year). Ive always been happy with the services they provide.

[Dan@OrangeGenie]

Hi all,

I am looking for an accountant as I start IT contracting. A lot of the recommendations on here seem to be for larger accountant firms. Looking at these, they seem to be heavier on having "client managers" rather than accountants. Also, although they provide an online portal, these seem to be proprietary, so I'd be locked in if I ever wanted to switch.

I've come across Freeagent but there don't really seem to be many recommendations on here for smaller accountants who use Freeagent. Does anyone have any recommendations for accountants who use Freeagent? Also, is there really an advantage to using these bigger firms?

We use FreeAgent

[Maslins]

Hi all,

I am looking for an accountant as I start IT contracting. A lot of the recommendations on here seem to be for larger accountant firms. Looking at these, they seem to be heavier on having "client managers" rather than accountants. Also, although they provide an online portal, these seem to be proprietary, so I'd be locked in if I ever wanted to switch.

I've come across Freeagent but there don't really seem to be many recommendations on here for smaller accountants who use Freeagent. Does anyone have any recommendations for accountants who use Freeagent? Also, is there really an advantage to using these bigger firms?

It makes sense that a firm with 10k+ clients gets more recommendations than one with 100...they'll also likely have more unsatisfied clients. Hard to tell whether they're better or worse from this in isolation.

At the risk of getting a slapped wrist for self promotion, we seem to fit the bill for you. We pretty much exclusively use FreeAgent. Relative the SJDs of this world we're a mere peon, but we're in the process of recruiting our 5th staff member so hardly a risky start up. Have been on CUK a while but tend to get recommended more for our sister company MVLO than Maslins.

[tractor]

.....

I've spoken to one and used the old 'P35' trick question on him.

He passed the test.

That won't work soon when you file your FLC accounts - it will be obvious

[cojak]

I've spoken to one and used the old 'P35' trick question on him.

He passed the test.

[Jeremiah@RHJAccountants]

Speak to a few accountants and see who you get on with best and don't just go on price alone. You want a service that is tailored towards your business and make sure there are no extra fees for things like payroll, self assessment or even reference letters.

Remember a good accountant will more than justify there fee in terms of you being tax efficient and the service they offer.

Welcome to contracting.

[jamesbrown]

I assume you've seen this thread?

The most important thing is that they're familiar with contractors (very important). Otherwise, just call a few and see what vibe you get. Generally speaking, you want to avoid a generalist in the local area. There's very little advantage in your accountant being local, as you can do everything online or via phone/e-mail.

[tl97]

Hi all,

I am looking for an accountant as I start IT contracting. A lot of the recommendations on here seem to be for larger accountant firms. Looking at these, they seem to be heavier on having "client managers" rather than accountants. Also, although they provide an online portal, these seem to be proprietary, so I'd be locked in if I ever wanted to switch.

I've come across Freeagent but there don't really seem to be many recommendations on here for smaller accountants who use Freeagent. Does anyone have any recommendations for accountants who use Freeagent? Also, is there really an advantage to using these bigger firms?