Frequently asked questions

Accountants typically determine their fees based on a number of factors, including:

• The type of services being provided: Some accounting services are more complex and time-consuming than others, and therefore command higher fees. For example, tax preparation and business advice are typically more expensive than bookkeeping which is being replaced by Ai.

• The size and complexity of the client's business: Larger and more complex businesses typically require more extensive accounting services, and therefore pay higher fees.

• The accountant's experience and expertise: The greater the knowledge and experience the higher the fees.

• The location of the accountant: Some very small accountants are working fully from home or even overseas and do not see the benefit of an office location, preferring never to meet in person. In our view this prevents them from not only not properly supporting their clients but also their teams if they have any have no relationship with their clients and simply treat their jobs as a production line. Those accountants who prefer an office do so to build a team culture, improve training and as a result do a better job for their clients. The downside is they have greater costs which they have to pass on to their clients.

• Ongoing education: As chartered accountants Wood & Disney are monitored by the ICAEW to ensure that we maintain our knowledge, so we are up to date with the latest changes in taxes or legislation which of course benefits our clients. 

On top of this the actual calculation of the fees vary and may include:

• Using an hourly rate: This is the most common method of charging for accounting services. Accountants typically charge a set rate per hour, depending on the seniority and experience of the person doing the job. The major downside of using an hourly rate is that it encourages spending more time on a job resulting in higher fees for the client.

• Percentage of revenue: This method involves charging a percentage of the client's annual revenue. This method is often used for auditing and consulting services but means that the same fee can be paid by a business with thousands of low value sales invoices compared to another which has a small number of very high value sales invoices. This doesn’t fairly reflect the work involved.

• Retainer: This method involves charging a monthly fee for ongoing accounting services. Retainer fees are often used for businesses that require a high level of support from their accountant.

• Fixed fee: This method involves charging a set fee for a specific service, regardless of how long it takes to complete. Fixed fees put the onerous on the accountant to find efficiencies including better technology in order to make a profit.

Wood and Disney use a software system which scores the quality of the data supplied by our clients, assesses the quantity of transactions and the complexity of the tasks to produce a proposal in advance enabling our clients to pay their fees split over twelve months in smaller more manageable sums rather than face an unknown large fee at the year end.

Finally, don’t forget that when choosing an accountant you should also ask about the level of service that each accountant provides because promises will be made but may not be kept unless both you and the accountant agree the full scope of the proposal in advance.

Accountancy fees vary dramatically because unfortunately the term “Accountant” is unregulated by which I mean anyone including your postman or road sweeper can simply create a website calling themselves an accountant and no one can stop them. So, prices will start very low as unqualified accountants try to build up a client base of the unwary, often working from home with no overheads, no requirement to have insurance, no requirement to have any training whatsoever. Some appear successful on the surface and we are aware of unqualified accountants fraudulently claiming tax refunds for their clients and obviously those happy clients are giving them five star reviews. Those clients get a shock when HMRC subsequently enquiry into their claims, discover they should not have received those refunds and demand the money back together with interest and penalties. The accountant who had deducted 20% from those refunds has subsequently disappeared or refuse to help, claiming they did nothing wrong.

Would you use an unqualified dentist just because they are cheap? Accounts and finance matters are the most important element of your business and without the expert guidance of a qualified experienced accountant you risk losing some if not all of your hard-earned wealth.

Wood and Disney are Chartered Accountants and are strictly regulated by the ICAEW. You can check us out at www.ICAEW.com. The two directors of Wood and Disney, Peter Disney and Brendon Howlett have between them 70 years of experience. We have professional indemnity insurance should we ever make a mistake. We have Tax Investigation Insurance which covers every client so that if they have a tax enquiry or a VAT enquiry or a PAYE enquiry our fees to defend them are completely covered. We undertake regular Continuing Professional Education with all accounting and tax team members doing monthly webinars. We have an office so you can visit us to make sure we are who we claim to be. We may be more expensive but as in everything in life you get what you pay for.

This is a really great question because most accountants will actually try to avoid meeting with you because meetings take time and accountants are desperately trying to reduce the time they spend on your accounts and tax returns so they can make more profit. The rise of the “virtual” accountant with no permanent office and a preference for using only digital communication has escalated since 2020. Many accountants are boasting that they are able to be based from some holiday destination and only working 3 hours a day for 3 days a week claiming their technology is doing most of the work but you are paying for that lack of care and attention. A competent business person wants to challenge their numbers, wants to understand them and the best way of doing that is a proper minuted meeting with an agenda.

We feel that the accounts and tax returns are important for complying with the law but their value is limited as they simply tell you what has already happened. The real value of the accountant is the wisdom of accumulated knowledge over decades and the only way to access that is through meetings. We also feel strongly that an accountant who only responds to ad hoc questions is a reactive accountant and not proactively thinking about their clients. A business owner doesn’t know what he doesn’t know and therefore the questions raised are accidents triggered by something they have seen or heard. The only way to be genuinely proactive is to agree in advance to have either monthly or quarterly meetings, setting an agenda before the meeting, taking minutes during the meeting and providing action points after the meeting together with reminders to ensure accountability. These meetings are hugely valuable and are charged at a premium price reflecting the wisdom of the senior accountant taking those meetings.

At Wood and Disney we have a structured meeting system supported by a reminder system to ensure that all agreed meetings take place at the due times and are never forgotten. One client recently said “you are not just interested in my accounts, you are invested in my future business success” which is true as our entire focus is Building Better Futures and defying the norm of business failure statistics by helping 100% of our clients survive more than 10 years and create a genuine asset to pass onto the next generation.

In today's fast-paced, ever-changing world, it can be difficult to know who to trust when selecting an accountant. Social media has given rise to a world of noise, where anyone can post anything, and it can be challenging to know what is true and what is not. As a result, credibility has become more critical than ever when selecting any supplier not only an accountant. In this article, we discuss the importance of credibility, the challenges posed by social media noise, and how to identify credible suppliers generally.

What does credibility actually mean? It encompasses sincerity, integrity, authenticity and reliability but fundamentally it is based upon trustworthiness and expertise. It is a combination of both emotion and logic. 

Credibility is a critical factor when selecting a supplier because it determines whether you can rely on them to deliver what they promise. Making the wrong choice can lead to delays, quality issues, and inevitably financial losses. For example, selecting a supplier based solely on their social media presence can be risky because social media noise can make it difficult to know what is genuine and what is not. In today's world, anyone can post anything on social media, and it can be challenging to separate the truth from the noise. As a result, businesses need to be cautious when using just social media to select suppliers. There was a recent news story about an accountant who had hundreds of five star reviews based upon getting massive tax refunds for their clients. It transpired that the refunds were fictitious and HMRC subsequently demanded the refunds back together with interest and penalties leaving those taxpayers with massive debts and long repayment terms. The accountant denied any responsibility and ignored any communications and requests for help.

One way to ensure credibility is to look for reliable third-party evidence. For example, has the supplier won any industry awards or hold recognized professional qualifications or perhaps a referral from another professional you already know and trust? Independent endorsements by the supplier’s peers provide a level of reassurance not provided by online reviews. You will note from our website that our testimonials are from actual named people and not made up with just initials to represent what may or may not be a real person. 

Formal qualifications not only provide evidence of expertise but also ensure adherence to much higher standards of behaviour. As chartered accountants the directors of Wood and Disney have taken rigorous exams where the pass rate is low. We are also reviewed regularly by the ICAEW to ensure we maintain Continuous Professional Education by attending seminars and webinars to remain up to date with the latest rules and regulations. We also have to prove we maintain Professional Indemnity Insurance to safeguard our clients. The accountant with the five star reviews mentioned above was not a chartered accountant and therefore not subject to the rigorous oversight of a professional body such as the ICAEW or the ACCA.

Another way to ensure credibility is to research the supplier's track record including their length of experience. Whilst new suppliers may have recent technical skills learnt from college or university, they will lack the practical experience that comes from working with many clients over many years. For example, a more experienced accountant is likely to have seen a wider range of financial issues and developed a deeper understanding of the unique challenges businesses face especially in regard to surviving recessions. So, you ask how long a supplier has been in business, and what is their experience? This information can be found through online searches, industry publications, or by speaking with other businesses in your industry.

Don’t forget to consider the supplier's financial stability. A supplier that is financially stable is more likely to have the resources to deliver on their promises. Consider their financial statements, credit reports, and any other relevant financial information to ensure they are financially sound. We often see advertisements claiming to be able to achieve amazing results yet when you check their own accounts at Companies House they are often insolvent. If they cannot get their own house in order how can they achieve those results for you.

It is also important to evaluate the supplier's communication skills. Do they respond to your inquiries promptly and professionally? Do they communicate clearly and effectively? A supplier that is responsive and communicates well is more likely to be reliable and trustworthy. We often hear from new clients that the reason they change is because their former accountant never responded back to requests for help.

There is a lot of discussion over recent years that you should consider the supplier’s values and ethics before doing business with them. Simon Sinek’s view is we don’t buy what a supplier sells, we buy why they sell it. We like to understand our supplier’s “purpose”. Whether you believe that or not asking questions about their culture, codes of conduct or ethical guidelines will ensure that you feel comfortable in dealing with them. So, choosing a supplier that aligns with your values and ethics can help ensure a long-term, mutually beneficial relationship.

Finally, it is important to evaluate the supplier’s level of innovation. In today’s rapidly changing business environment, it is crucial to choose a supplier that can adapt to changes and innovations quickly. Consider their investment in technology and R&D.

 

In conclusion, credibility is essential when selecting any supplier not just an accountant, particularly today where social media noise can make it difficult to know who to trust. By looking for third-party endorsements, researching track record, evaluating financial stability, considering their values and ethics, and assessing their level of innovation, businesses can ensure they select a supplier that is reliable, trustworthy, and can deliver on their promises.

 On every accountant’s website they will claim that they are different. They may claim to be Xero or QuickBooks specialists but take a look at the ‘find an accountant’ pages on both Xero and QBO websites and there are thousands of accountants registered with them. They claim to be modern in their use of technology but again you can find that comment on thousands of accountants’ websites. They claim to avoid jargon and be plain speaking and that also appears on thousands of websites. They may have won multiple awards but again you will see that on hundreds of accountants’ websites. Some even claim to be disruptors of the accountancy profession, accountancy influencers, ahead of the curve or even revolutionary which just sound self-absorbed rather than a reason for clients to go to them.

So, Accountants ARE all the same then? Which if that’s the case is it safe to choose the cheapest?

Actually no, in our opinion every accountant is UNIQUE, and we will explain why it is important for you to understand how this helps you as a business owner select the right one for you, even if that accountant is the more expensive option. 

Each and every accountant is unique because they are who they are, through a magical combination of: 

• qualifications, 
• ongoing formal learning and 
• their very specific practical experience.

 The assumption is, that if someone calls themselves an accountant then they must be qualified, but sadly this is untrue. The term accountant is actually unregulated in the UK, so you need to check carefully who you are dealing with. If they are unqualified you need to wonder why. Let’s not forget that all qualifications are just a stepping stone to the next part of your life. Whether that was achieving GCSEs in order to be able to study A levels. Passing A levels to continue to study for a degree or a technical qualification. Gain a degree to go down a particular career path or perhaps study for a Masters, and then possibly on to a PhD. Each exam passed is not the end, but the ongoing journey. 

An accountancy qualification is not a certification that you can use a piece of accounting software. All of the major cloud accounting companies have a certification program for bookkeepers. All these certifications prove, are that you are competent to use the software not that you are an accountant. Take a look at some accountants’ websites and you will see that their software certifications are their only qualifications. That may be fine if you only want them to do some basic bookkeeping but not if you are going to trust them with your intimate financial details. There are some “paid for” qualifications where members pay an annual subscription but do not take any exams to prove their competence. Some may have technical qualifications such as being members of the Association of Accounting Technicians (AAT) or Association of Taxation Technicians (ATT). AAT and ATT are level 4 qualifications, the same level as an HNC, i.e. one year of university, equivalent to a dental nurse for example. These are great technical qualifications and often lead on to taking the chartered accountancy exams. Wood and Disney have trained many students over the decades first putting them through their AAT (Association of Accounting Technicians) and then onto their Chartered Accountancy exams. Every single one has said that their chartered exams were so much more difficult and demanding than their AAT studies.

Chartered Accountants are level 7 qualifications, equivalent to a Masters degree. Wood and Disney are qualified Chartered Accountants and members of the ICAEW (the Institute of Chartered Accountants in England and Wales) which are amongst the toughest exams to pass in the world with a high failure rate. Success in these exams gives that person a very focused qualification with an in-depth financial perspective of business. However, just passing some exams is not enough. It just shows you are intelligent enough and focused enough to pass those particular exams.

When Peter Disney qualified as a chartered accountant at the age of 23, he thought he knew it all. He changed jobs to work for a national firm and his manager was a 60-year-old with 40 years practical experience. Peter quickly realised how little he actually knew but working for this manager he experienced dozens of appeal meetings, tax enquiries, tax planning and all sorts of client support which he hadn't experienced while he was training. The client relationships were the most important. Building rapport, learning to listen properly, and gaining their trust that he did actually know what he was talking about. He was a fresh-faced youngster talking to much older business owners, so he had to work extra hard to convince them the advice he was giving them was actually right. Those older business owners would still call the 60 year old manager to double check. Peter would need more than just being a chartered accountant to be able to advise business owners which is where the other two magic ingredients come in.  

 There is an old saying which states that “when you stop learning you stop earning”. The finance world is constantly changing. The tax world changes even faster. You learn one set of complex rules and six months later you may have to learn a whole new set. If your accountant was busy trying to run a business, it would be very easy for him to miss important new changes. Professional accountancy bodies impose minimum hours every year of both structured study (seminars, webinars and conferences) and unstructured study (accountancy magazines, tax magazines and related technical reading). The ICAEW who regulates Wood and Disney requires the directors and qualified staff to do a minimum of 40 hours of study each year to ensure we remain up to date with tax and accounting regulations. Every year each qualified member of the Wood and Disney team has to maintain a log of all study and confirm to the ICAEW that this has been done. The ICAEW then visits its members every few years and part of their review is the checking of the study records to ensure we all comply. The Wood and Disney team consistently spend more time studying than the minimum required by the ICAEW and in particular, we have also been choosing to expand our knowledge of business growth and profitability since the mid-1990s, joining such organisations as AVN, Association of Profit Advisors and 2020 Innovation Group. Both directors of Wood and Disney are also accredited members of the ICAEW Business Advice Service. 

Experience plays a crucial role in shaping an accountant’s skills particularly in judgement, problem solving and decision making but there are many different ‘levels’ and ‘types’ of experience.

Levels achieved over time. You could describe them as beginner, intermediate, advanced and expert. These levels represent increasing knowledge compounded over many years perhaps even decades. Levels represents breadth of experience. Breadth of experience could be the sheer variety of experience accumulated over time including business structures such as sole traders, partnerships and companies, industries acted for such as manufacturing or construction and of course wider areas of finance such as financial analysis, budgeting, forecasting and internal controls.

Types of experience simply means depth of experience. An example of depth may be that an accountant with 25 years’ experience is likely to have a deeper understanding of complex accounting concepts, regulations and best practices acquired through handling diverse situations.  

This depth and breadth of experience is important in developing judgement, problem solving skills and the ability to make better decisions. The accountant with decades of experience has probably made or seen lots of mistakes and this has helped fine tune their skills such that they can identify potential issues faster and recommend proactive solutions based on their past experiences. With longer exposure to business dynamics the more experienced accountant will possess a more long-term strategic perspective as opposed to a short-term knee-jerk reaction.

The two directors of Wood and Disney have between them over 75 years of experience. Gained from decades of looking at business numbers and seeing what is successful and what is not, Wood and Disney see patterns and know what they mean. We can see where money is being wasted. We can see where opportunities are being missed. We have written white papers on the subject of growth and profitability. We even created the first online business advisory website called Plus4Business in 2002 and the future proof business assessment tool in 2022.

The assumption is that if someone calls themselves an accountant then they must be qualified but sadly this is untrue. The term accountant is actually unregulated in the UK, so you need to check carefully who you are dealing with. 

Firstly, check their website. If they don’t have one, then that is a major warning sign and they should be avoided at all costs. Does the website refer to any qualifications? Qualified accountants are proud of their achievements and will mentioned their qualifications or carry the logo of their professional bodies. If all they refer to is a certification in say Xero or QuickBooks or one of the other accounting software systems then they are not qualified accountants. They may be competent bookkeepers, but such certifications are not proof of competence to handle your financial affairs. 

There are a variety of qualifications that you could see but some are paid for subscriptions, and some can be achieved in a very short period of time not really giving you confidence of that person’s ability. The top qualifications are from the ICAEW (Institute of Chartered Accountants in England and Wales), the ACCA (Association of Chartered Certified Accountants), and CIMA (Chartered Institute of Management Accountants). So, you may see individuals with ACA or FCA after their names indicating they are regulated by the ICAEW. Or ACCA and FCCA being members of the ACCA. Finally, there are ACMA and FCMA who are members of CIMA.

Wood and Disney are Chartered Accountants and therefore strictly regulated by the ICAEW.

An excellent question because asking the right questions should avoid falling into the trap of just choosing the cheapest because you cannot tell the difference.

• What are your qualifications? Ideally, they should be regulated by one of the Chartered Institutes, so you are looking for ACA or FCA who are members of the ICAEW, ACCA or FCCA who are members of the ACCA and finally ACMA or FCMA who are members of CIMA.

• How long have you been an accountant? Passing exams is only part of the equation and practical experience is also essential so asking how long they have been in practice is a key guide. The word practice shows that they have been working with clients just like you whereas many accountants choose to work in industry, perhaps in a finance department of a major PLC. Although they may understand debits and credits, what do they really know about a small or medium business and they certainly don’t have any tax knowledge. Also, if they have been in practice for a long time they will have seen success and failure and understand why each occurs. This business experience (rather than just financial experience) can be extremely valuable for a small or medium business.

• Do you have any other clients in my industry? Be careful with this one because although having some experience in your industry could be useful particularly if there are unusual tax considerations it doesn’t necessarily help if you are looking for business advice. The reason for this is that the “specialist” is also giving the same advice to all of your competitors. And for the specialist they are not gaining any new knowledge from different industry experiences. In an ideal world Wood & Disney would prefer to have one client from every type of business so we can cross pollinate ideas to increase success for all of our clients. In reality, we have pockets of clients in similar industries as well as a wide spectrum of different industries. We prefer not to have an industry specialisation and instead have a business advisory specialisation. 

• Do you have experience of a particular financial need? You are about to sell a property and you know you have to pay capital gains tax but need some help. Not all accountants deal with Capital Gains Tax so you need to ask a specific question to ensure the accountant you select can deal with that issue. You are going through a divorce and need a business valuation? Again not every accountant can deal with this. By the way Wood and Disney have experience of both of these scenarios.

• What other services do you offer? Some accountants are just bookkeeper accountants. They process your transactions based upon what you tell them and they produce your historical accounts based upon those transactions just to be able to prepare a tax return. They offer no tax or business advice and that may be fine. If your business is very small and very simple then perhaps that’s all you need. As chartered accountants Wood and Disney offer a wide variety of services covering all aspects of tax as well as business growth and profitability advice.

•  How do I know you are up to date in changes in tax and regulation? As chartered accountants Wood and Disney are strictly regulated by the ICAEW and as such we have to comply with their requirements to attend seminars and webinars throughout the year. In fact, we are part of 2020 Innovation who provide monthly webinars on tax and regulation as well as two annual conferences which we attend. We apply the philosophy that “if you stop learning you stop earning” so are keen to maintain not only our knowledge of tax and accounts but also of new technology affecting the accountancy profession.

• If I have a question how quickly will you respond? If you have chosen a “one man band” who works from home then you are not going to get a very fast answer to any questions and no answers when that person is on holiday. The vast majority of your questions will not require a high-level technical answer so using a firm of accountants like Wood & Disney means that responses are faster because it is likely that multiple people in the office can answer that question. If it is a high-level technical question then yes of course it may take longer to respond depending on other tasks and appointments, however at Wood and Disney our target is to respond the same day or at the worst the following working day.

• How do you protect my sensitive financial data? Obviously, your data is extremely sensitive and you don’t want other people to know about your wealth. Complying with data protection and being compliant with GDPR would be the very minimum you would expect. It is surprising how many accountants do not comply so you can check online at https://ico.org.uk/ESDWebPages/Search. If you know the registration number then use that but otherwise the system can search on name, address and postcode. For your information our registration number is Z5296040 and we have been registered since our business was incorporated in 2001. On top of this Wood and Disney went though the process of gaining ISO 27001 for information security management. Sadly it proved to be very expensive for a small business such as ours and we did not renew in 2020 but the systems and processes we put into place are still being used. For example, all accounts and tax returns are sent to our clients via our secure portal called Citrix Sharefile to ensure such sensitive information can only be accessed by the right person. We have no paper files in our office as everything is in the cloud. Any post is scanned and shredded. All desks are cleared at night, everything is locked and we have a key safe. All of our laptops are encrypted. Finally, all members of staff sign confidentiality letters every year.

It is a simple matter of accessibility. Do you need to visit your accountant? Do they want to meet face to face even if you want to? Can you park if you meet? Suppose he chooses to always meet at a coffee shop, then how can you be sure that your delicate financial affairs are being kept confidential? You also need to consider accessibility in terms of what happens when your accountant is not available due to holidays, sickness or even death. Suppose there are important deadlines to meet? Suppose you need to collect an important document? If there is no one to help you it could at best be inconvenient and at worst will cost you money. The benefit of an established firm of accountants such as Wood and Disney is that there will always be someone available who knows something about your business and will be able to advise you if the normal person who deals with you is absent. The production of your accounts or tax return will continue no matter what happens, and all-important deadlines will still be met.

You are not alone in believing that having selected an accountant and then stayed with them for many years it is simply too difficult to change. Many business owners stay with a poor accountant despite the fact that it causes them sleepless nights and costs them a lot of money. In reality changing accountants is incredibly easy to do and a new accountant can very quickly and easily bring himself or herself up to date with your affairs. Don’t forget that the Inland Revenue seldom go back more than 6 years and the VAT man seldom more than 4 years so your new accountant does not need to have realms of old paperwork relating to your past. It is also very unlikely that your existing accountant has kept all of your old paperwork and has probably already destroyed everything over 6 years old anyway. You don’t have to make excuses or feel embarrassed. It is his fault that you are unhappy not yours, so don’t let him convince you he will change because it is very unlikely that he will. A good accountant is likely to save you more than you will lose so the quicker you reassess your accountancy and tax needs the better you will be both financially and in feeling less stressed. The process of changing is very simple and we can provide you with an email template to inform your old accountant that you are changing.