Accountant Or Financial
People in the UK are often confused as to how an accountant or financial advisor, particularly online vs traditional, should be determined. Some might argue that there is no difference at all, especially online, where the only difference is the platform that people use. However, with more companies operating through the internet, both clients and businesses will benefit from using a company with which they can interact easily.
Business Online
When using the internet, there is no longer the issue of whether or not one is dealing with a traditional or online business. There is much less difference than was once the case. Many online accounting firms are similar to traditional firms, with the exception of the fact that they have online profiles instead of a brick and mortar location. However, if one does business online, then it is a given that they will deal with clients that are doing so via the internet. Therefore, an online vs a traditional accountant are not the only consideration.
Determining The Accountant
The biggest consideration when determining the accountant or financial advisor is the medium size business vs the small business. There are simply more issues to deal with for the medium size business than there are for the small business. Issues such as taxation, benefits, employee relations, technology, payroll, and marketing come into play for the medium size business. This is why most accountants have a brick and mortar office, because they understand how complicated these issues can be for the small business owner.
For the medium size business, it is entirely possible that no formal legal agreement has been made between the client and the accountant. This is because it is entirely possible that the accountant does not have any legal training, and this is what happens when a person performs the services for the first time. The accountant may have absolutely no idea what a contract would look like, and therefore will have no means of understanding what is expected of them. This is why it is absolutely necessary to thoroughly vet any accountant who is considering doing work for you.
Major Consideration
The second major consideration, and the one that deal directly with the ethical side of the equation, is the fact that no legal paperwork is involved with any of this. Everything that happens over the course of the year is done online, and all of the information provided is sent via email. Therefore, there is no paper trail to follow, and there are no customer service lines to answer either. A lot of advisors recommend that people hire an accountant in this instance, because even if the legalities are not too confusing, there is still nothing that the accountant can legally do that will put your finances in jeopardy.
Financial Advisor
It goes without saying that when dealing with a financial advisor, one must be extremely careful about what they say because if something were to be misinterpreted it could result in serious legal action. If an accountant says something to the effect of, “your account is a bad idea”, it is a good idea for the client to take their word for it. However, it is always better to err on the side of caution than to make a huge mistake. This is probably the most important thing to keep in mind when trying to decide which accountant to hire. Just because an advisor is experienced and has years of experience dealing with the IRS does not mean that they will have all the knowledge needed to properly represent your interests in the process.
Hire An Accountant
Now, let’s look at what an accountant or financial advisor debate might look like. Let’s say you’re looking to hire an accountant to help you with your business taxes. The accountant is suggesting that you get a refund, because he or she can get you a lower tax rate by having you pay less in deductions. Your financial advisor tells you to take the refund and roll it into a new account where the bulk of your income is coming from. You make a little extra money, and you might have gotten some deductions you did not otherwise qualify for.
Financial Advisor
Now, would you go ahead and trust your financial advisor to handle this matter? It seems kind of crazy, doesn’t it? After all, you’ve been using your accountant to help you manage your money for years, why would you suddenly hand over that responsibility to someone else? While there are certainly situations where an accountant might be absolutely essential, in the vast majority of cases an accountant or financial advisor battle would be a losing one for any client.
