There are a daunting amount of companies out there practicing accountancy so what should you consider when choosing an accountant...

There are a number of factors to consider when choosing an accountant but the most important is whether you need a general or specialist accountant. A general accountant can help service the overall needs of your business or can help with personal finances; a specialist accountant will be able to help with more specific areas of finance such as cash flow projections or VAT. The following will help explain the specific services that accountants can provide:

Account Production - Account Production is the preparation of annual accounts for inspection by the Inland Revenue; you are required to keep track of your spending, profits, tax returns and all manner of transactions.

Audit - An audit is the systematic examination and verification of a firm's accounts which results in the publication of an independent opinion on whether those financial statements are relevant, accurate, complete and fairly presented.

Bookkeeping - Bookkeeping is the systematic recording of financial aspects of business transactions in appropriate books of account.

Cash Flow Forecast - Cash flow forecasting is an estimate of the timing and amounts of cash inflows and outflows over a set time period, generally a year. It shows if a firm needs to borrow, how much, when and how it will repay them. This can also called cash flow budget or cash flow projection.

Management Accounting - Management Accounting is the process of preparing management accounts that provide accurate and vital financial and statistical information that is necessary to allow managers to make informed decisions; this information is generally presented in weekly/monthly reports and contains details of available cash, sales revenue generated, orders in hand, accounts payable and receivable and outstanding debts.

Payroll - Payroll is the amount paid to employees for services they have provided during a set time period. Payroll is a crucial part of any business calculating wages, National Insurance and income tax and the arrangement of payment to employees. Payroll and payroll taxes can considerably affect the net income of most companies and as a result are subject to strict laws and regulations.

Tax Returns - A tax return is a document the must be completed for the HM Revenue & Customs which declares liability for taxation. At the end of every year of trading a company is required to pay Corporation Tax;

Online Accounting - Often called E-accounting it is the application of online and Internet technologies to the business accounting function.