Finding a reliable accountant in South Africa can be frustrating and confusing. You need to ask the right questions to find an accounting firm who will help grow your business.
1. Are you a registered accountant?
Many accountants offer services while not registered with an accounting body.
Did you know that a registered accountant will have compulsory professional indemnity to cover you in the event of misinformation? In fact, you will even be protected against fraud committed by a registered accountant.
When you meet your new accountant, ask him if he is registered with SAIPA (SAIPA -South African Institute of Professional Accountants). If you are looking for a tax practitioner then ask if he is a registered tax practitioner with SARS (SARS- South African Revenue Services).
Only registered qualified accountants can charge fees for submission of tax returns to SARS.
The benefit of using an accountant who is registered with SARS is that he/she has had to do a minimum of 40 hours per year of extra learning and training to keep up to date with the ever-changing tax laws.
A registered tax practitioner is also held responsible for submitting your tax return correctly and on time.
2. How long has your accounting practice been trading for?
Many new accounting businesses fail because of poor money management. Would you really want a failing accounting business to handle your finances?
The longer an accounting firm has been in business, the more experience they have.
Experience is valuable because it makes us wiser. Real world knowledge cannot be bought or taught.
3. Who will I deal with at your accounting firm?
In a big accounting firm, small business finances are often handled by junior staff.
You want to work with the person who has the knowledge and expertise.
Although junior staff are used to prepare the work, an experienced partner or manager must have the oversight and guidance over his junior staff.
You really do not want a student with little experience advising and guiding you.
A sole owner accounting practice is not ideal because when the accountant is away on holiday, ill or busy with another client, you will be left unattended.
Remember the old saying “Two minds think better than one,” when choosing your accountants.
4. What are your accounting and tax fees?
Often clients ask about the cost but they don’t ask about what they will get.
You must know what the fees will be and what will be done.
Many clients look for the most affordable accountant but forget that they might not get a valuable service.
Keep the rate and your budget in mind but look for the best service you can afford.
Factors that influence the cost:
- What your accountant is willing to do for you.
- When your accountant will get it done by.
- Who will be working on your account. (See question 3 above)
5. Will you remind me of upcoming deadlines or must I approach you each time?
Your business is important and your sole focus should be on it. So, it is best to choose a firm who will remind you and make sure you are compliant with the multitude of government agencies.
6. What safe guards and safety protocols are in place to protect my personal information?
You will share a lot of your personal information with your accountant. You have every right to know who will have access to that information.
Most companies store information online for fast, easy access. Ask your new accountant whether your information will be stored online and whether it will be stored in a cloud storage.
Most importantly, ask whether your information will be sold to 3rd parties. This alone is incentive to deal with a registered accountant.
Your information is protected by law under the POPI act (protection of information act).
7. Can you explain technical accounting and tax jargon to me?
This will be more of an observation during your first consultation than a straightforward question. Observe whether your new accountant is friendly and approachable.
An accountant or tax practitioner who is patient and willing to explain complicated accounting terms to you is more likely to care about you and your business.
You need someone to help and guide you through the maze of complex statutory requirements. For someone who is not a trained accountant, some of the technical jargon can be unfamiliar and confusing.
You want an accountant who will help you get a basic understanding of what different statutory bodies need and why they need it so that you can be compliant.
Conclusion
Finding a reliable accountant will help you grow your business.
A good accountant or tax practitioner will ensure that you meet all the necessary requirements and that you adhere to deadlines.
The best accounting firm you can find is one that will take a personal interest in growing your business and have enough experience to explain complicated issues to you.
Look for an accountant you can talk to and check that he is registered with SAIPA.
For our answers to these questions visit our FAQ page.
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