By Sue Beaton

Challenging times call for expert advice and having a reliable accountant who understands the roller-coaster world of general practice should reap rewards in the long term. Here are some tips on appointing a new accountant for your practice.

1. Identify your reasons for change

First ask yourself why you wish to change accountants. There could be a number of reasons. It could be because your accountant takes too long to complete work for the practice. Or they may be failing to give you the information or feedback you need. You might feel their fees are too high or the business relationship with your practice is lacking. Or perhaps the important missing ingredient is specialist knowledge of the NHS and specifically general practice.

2. Do your research

Identifying why you want to change accountants will help you draw up a shortlist of firms that you think will fit the bill. Find at least three potential firms – the common factor amongst them all is that they should offer a specialist service for GP practices. Search online for specialist medical accountants (look out for members of the Association of Independent Specialist Medical Accountants). Ask colleagues in other practices for recommendations – it’s worth shortlisting firms whose expertise can be demonstrated by a proven track record.

Medical finances are complex and it is more important than ever that your accountant has a thorough working knowledge of the NHS given the many changes and reforms that have taken place in recent years.

Once you have compiled your shortlist, invite the firms to the surgery to meet you and the partners and to see if you’d feel happy working with them.  At the meeting, focus on the following key areas:

3. Quantify each firm’s experience

How much experience does each firm and its team have with respect to the NHS? How many medical clients do they act for? Are their clients predominantly hospital doctors, locums and sessional GPs or do they have a healthy number of GP practice clients?

Then establish if the firm’s client base is solely medical or whether they have a spread of clients. There are pros and cons for both but considerable experience in both medical work and professional partnership and owner-managed businesses is key.

4. Find out who you will be working with

Who is in the team and who would be your main point of contact? How contactable are they? It is important that you can get hold of the right person to assist you when you need advice or help.

5. What service levels are provided?

Ask questions that will help you establish the typical time taken between the firm starting work and issuing reliable draft accounts for discussion. Find out what information the accountant will require from you and the partners in order to produce the accounts, tax returns and superannuation certificates. (As an aside, this could be an opportunity to review your own accounting systems and controls.) Ask if the accountant has any software requirements or preferences when it comes to providing the practice records.

6. Focus on medical specialism

Ideally your accountancy firm will publish a periodic newsletter, write articles, deliver talks or provide online information to keep doctors and practice managers informed of current financial NHS developments. Ask each firm what specialist publications and events they offer their GP practice clients and ask if they provide statistics to help you compare your practice performance with other practices in your region? All AISMA accountants are able to offer this information.

7. Ask about fees

Find out how much the firm charges each year and establish whether fees are fixed or charged by the hour. Establish exactly what the fees cover. Some firms quote for a “basic” accounts and partnership tax service but also invoice the partners separately for personal tax returns. Ensure that the fees information you obtain is comparable between the firms to enable you to make a decision.

8. Ask for references

Consider asking the new accountants for references from a few of their existing medical clients. Most firms should be more than happy for you to approach their clients (with their permission) for their views and experiences.

Once you have asked all the right questions you should have enough information to choose your new accountant. Once you have informed them, you should receive a letter from the successful firm setting out their terms and conditions. Prior to the new firm undertaking any work, it will be necessary to write to your old accountants, informing them of your decision to change and giving details of the new accountants with whom they should liaise to ensure a smooth handover.

In order to maintain a successful and smooth working relationship, remember to keep your new accountant abreast of any major changes within the practice. Keeping them informed along the way should ensure their ongoing input and advice on important practice changes.

—————————

About Sue Beaton
Sue heads the medical division at Coveney Nicholls, Reigate and is an Executive Committee Member of the Association of Independent Specialist Medical Accountants.