Choosing the Right Accountant – Key Advice for Offshore Contractors

Being an offshore contractor has its own benefits and difficulties. Different tax rules are there and it’s very difficult for business owner to know about all these rules. Therefore handling all expenses and maintaining proper records are really a hectic task. Overall spending money in a right way is important. Considering these entire business phenomenon it’s important to appoint a good accountant who can help you to manage all business expenses and save money by maintaining proper accounting procedure. He will also help you to focus on your business activities instead of worrying about accounting paperwork.

If you’re an offshore contractor looking for an accountant then here are some key pieces of advice to help you make the best choice:

1. Look for Offshore Contracting Expertise

Not every accountant understands what offshore contractors need. Dealing with taxes in different countries and reporting foreign income can be complicated. You should choose an accountant who has worked with other offshore contractors or knows the rules in the countries where you work.

Tip:

Ask accountants if they have helped other offshore contractors before and what kind of work they have done. If they can show you examples or reviews from clients like you, that’s a good sign.

2. Verify Qualifications and Registrations

Check the qualification of the accountant whom you are about to hire and check whether he is registered with an official accounting group in your country (such as ACCA, ICAEW, or equivalent). For offshore work, it’s even better if they are part of an international network or have partners in the countries where you work.

Tip:

Check their memberships and qualifications online. Reputable accountants will be happy to provide proof.

3. Check Their Knowledge of Tax Laws and Compliance

Offshore contractors often have to deal with tricky tax issues. They can take the help of an accountant to get rid of paying taxes in more than one country. Therefore accountant should know how they can help offshore contractors to avoid paying their tax twice. He should know residency rules and the latest international tax laws.

Tip:

While talking with your accountant first time, ask how he stays updated on international tax rules and how he would manage your particular tax needs.

4. Ask About Services Provided

Some accountants can only help with basic bookkeeping or tax filing. As an offshore contractor you might need more services like:

• Advice on the best company setup (such as a limited company or umbrella)
• Help with VAT or GST registration and reports
• Managing payroll
• Keeping track of expenses
• Handling international banking and currency problems

Tip:

List down all the accounting services you require and discuss with your accountant if he would be able to provide you with that or not. It’s always better to have one company doing everything for you than having accountant from different companies.

5. Communication and Availability

Time zones and traveling may make it difficult to communicate with accountant. Choose an accountant who answers promptly and employs latest technical communication channels such as video calls, secure file transfer and email. Receiving clear and prompt advice is critical, particularly if you have a time-sensitive financial or tax issue.

Tip:

When you first reach out to an accountant you can check how quickly they reply. Which means of communication he is using etc? Also, ask how they keep in touch with clients from other countries.

6. Ask About Fees and Billing Methods

Accountants may charge a set fee, an hourly rate or a monthly payment. Make sure you know how much you will have to pay and what is covered. Clear billing is important for offshore contractors so you don’t get unexpected costs.

Tip:

Request the service charges upfront when hiring. Also ensure there are no additional fees for international work. Clarify all your questions before hiring.