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IT Contractor Accountants - How to choose one  

Of all the advisers you are likely to encounter as an IT contractor, a good accountant is perhaps the most valuable one to have. If your accounts are in order and you are up-to-date with payments, you are far likely to be more able to concentrate on your contact work. There is nothing more stressful than feeling behind or not in a position of trust with your accountant, so here are some basic tips on choosing an accountant.

1) Investigate, and if possible, choose an accountant before you start contracting. The contracting world is a small one, so listen to recommendations from contractors who have been in the game for a while.

2) Make sure your accountant is fully qualified - either as a certified or chartered accountant. Most likely, these qualifications will be displayed on any promotional material or the company's website, otherwise make sure you ask. Key accountancy bodies in the UK include The ACCA, ICAEW, CCAB, and ICAS (Scotland).

3) It is essential that your accountant works with other IT contractor clients.

4) How much does the accountant charge? Is there a fixed annual or monthly fee to complete all business tax requirements, or do hourly fees apply? Compare the fees of several firms. In our experience, you should be able to hire a good contractor accountant for £70 - £100 + VAT per month.

5) When you first meet a prospective accountant, you will know soon enough if you see eye-to-eye. It is important to develop a good relationship and know that your finances are being handled by someone you trust. You should contact at least 3 accountants and find out which one best meets your requirements.

6) What other services does the accountant provide - can they complete your self assessment returns, are they up-to-speed with issues such as IR35 and Section 660?

7) Ask to speak to existing contractor clients before signing up. A decent accountancy firm should be happy to arrange this.

8) Make sure your accountant keeps in touch with you - not just at year end! If you feel your current accountant no longer meets your requirements for whatever reason, get a new one!


Published on Mar 6, 2006


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