From Poodles to Pugs and Basset Hounds to Bulldogs, Crufts is a world famous dog show that is not for the faint of heart.

The standards are high and the judges are strict.

Nearly 200 breeds take part in the spectacle that can send a dog’s career skyrocketing.

But to the untrained eye, one pampered dog is much like the next.

And it’s a similar picture for accountants. Take a walk down any high street and you’ll see at least half a dozen accounting firms offering services ranging from annual tax filings to performance management.

So how can you tell if an accounting firm is best in class?

Well, regardless of their qualifications, accountants perform one of two tasks:

– Compliance tasks, which generally refer to tax returns and annual accounts. Businesses are legally required to do this and using an accountant can relieve you of the administrative burden.

– Value-added services, these are the services that will help your business grow.

Compliance work is crucial. Companies would be quickly stopped by the powers that be if their tax returns and Chamber of Companies filings were not completed accurately and on time.

Historically, compliance work has been the ‘bread and butter’ for many accountability practices. But it can make an accountant focus less on client relationships and more on doing paperwork. That’s why some people only hear from their accountant once a year.

The compliance counter focuses on:

– Accounting

– Preparation of quarterly VAT declarations and annual tax declarations

-Paysheet

That is where companies that provide value-added services stand out. By working closely with clients, management accountants help companies improve performance.

They work with clients to understand the financial consequences of past decisions and ensure they make the best decisions for the future to keep growth on an upward trajectory.

The value-added accountant focuses on:

– Cash flow management: Cash is king and companies must be able to see if there is a deficit or a surplus on the horizon.

– Prices: sometimes the best-selling product by volume may not be the most profitable.

– Cost control: Companies must keep a tight control on costs because a product line can become unprofitable for just one cost out of control. Variances against projected cost should be evaluated monthly and corrective action taken.

– Sales analysis: Observing trends and reacting to them is essential, for example, is cross-selling working or is the product mix wrong?

– Buy or lease decisions and cash or loan decisions: what is the best way to expand the business? Does your business plan stand up to scrutiny?

Companies should look for accountants with work experience in the industry. The value of his experience cannot be emphasized enough. In simple terms, an accountant with experience in the industry will have developed new systems, put them into practice, and made adjustments accordingly.

An accountant who has only worked in practice will not have that experience, unless they have many years of experience working on projects.

So when you’re ready to choose an accountant, take a tip from the judges at Crufts; Think hard and make sure you choose the accountant that will take your business from “doing well” to “flying high.”