Why You Should Be Wary of Cheap Accountants
Everyone loves a bargain. It's basic human nature. However, when running your business, you should focus on investments rather than bargains - especially when it's time to hire an accountant.
There are plenty of cheap accountants, but choosing their services based on price alone is a dangerous game. Of course, it's tempting to hire a low-cost accountancy service; no one likes shelling out large amounts of cash. However, there are many pitfalls of hiring a cheap accountant, and you might see little ROI on your hard-earned money.
Did you know that anyone can call themselves an accountant? Legally, accountants don't have to have any qualifications to set up their practice. Anyone can do it at the drop of a hat - and it happens more often than you'd think. Therefore, when an accountant quotes you at a very cheap price, the likelihood is that they are not adequately qualified. If something seems too good to be true, it probably is.
Cheap accountancy firms tend to attract unqualified accountants since qualified professionals flock to reputable companies willing to pay them what they're worth.
It’s always best to hire a chartered accountant with an ACA, ACCA or CIMA qualification. Chartered accountants undergo stringent exams, are regulated by professional bodies and have plenty of experience, so you can be confident that your accounts are in safe hands.
Budget accountancy firms tend to take on a very high volume of clients, which means they cannot provide top-quality service. As a result, you're unlikely to enjoy the personalised service you'd receive from a more expensive firm or the same level of financial advice and insight.
Remember that mistakes on your tax return can prove very costly to your business. Accountancy mistakes cause more damage the longer they go unnoticed, so it's worth investing in a firm that will look closely at your accounts and catch any errors before they cost you a fortune.
Higher Tax Bill
Generally speaking, cheaper firms are not committed to customer retention. Their low prices continue to attract business owners, so they see you as replaceable and are not dedicated to saving you money in the same way as a higher-quality firm would be. Therefore although you pay less upfront, you might find yourself forking over a lot more in taxes and missing out on lucrative loopholes.
In addition to the quality of the service you receive, it's also essential to think about the quantity. Often, cheaper accounting firms offer limited services, and you'll pay more than you expected, thanks to sneaky hidden fees. If a firm is offering an all-inclusive service, it's important to investigate and find out precisely what that means. Cheap services can often prove expensive.
Moreover, a higher-quality accounting firm is likelier to go the extra mile. They'll pick up on your mistakes, help you to get everything in order and provide advice. A firm that goes above and beyond is of enormous value to your business. Although you pay more upfront, you'll be much better off in the long run.
Whilst cheap accountants may be attractive in the short term, they can cost you much more money overall. More expensive firms with qualified and chartered accounts provide much better value for money and can save you a significant sum on your tax return. It's worth remembering that cheap accountants attract clients through low pricing, while more expensive firms get clients by providing excellent service. They garner a good reputation through proven results and are willing to go above and beyond to ensure the financial health of your business. Hiring an accountancy service is an investment in your business, and it's one that you need to carefully consider before diving in.