HOW MUCH SHOULD I PAY FOR AN ACCOUNTANT?
DETAILED INFORMATION ON ACCOUNTING CHARGES
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Why do accountants charges vary?
How much should an accountant cost?
How much does an accountant cost a month?
Am I paying my accountant too much?
Accounting charges greatly range from an accountant to accountant. This is because there are so many variables between accountants. These include:
Qualifications - The first thing is how qualified and regulated the accountant is. There are a wide range of accounting qualifications in the accounting industry - AAT, ACCA, CIMA - to name a few. A highly qualified chartered accountant will charge more than an accountant with a more basic qualification. In our opinion, most small businesses do not require the services of a chartered accountant. It can be overkill, paying premium prices for a standard service. However, you must hire a qualified, licenced, and experienced accountant.
Experience - A more experienced accountant will also charge more. Experience speaks for itself.
Location - Accounting practices based in cities may charge more than rural practices because their overheads (rent, wages, etc.) are higher.
Practice Size - In our experience, larger accounting practices charge more than smaller ones. This is due to larger overheads and the practice's ability to offer a broader range of experts. For example, a large accounting practice may have dedicated specialists for VAT, payroll, corporation tax, etc. In contrast, a smaller practice may have a single accountant covering all tax and accounting aspects.
Service Details - Sometimes, that difference in pricing is due to how extensive the service is. Some accountants include email support, consultations, and additional services as part of their standard fee, while others charge for these additional services.
Depth of Service - Customers often require different levels of service. Some are good at keeping bookkeeping records and reconciling their accounts, while others are messy, meaning more work for the accountant. Some clients require extensive calculations for asset purchases, depreciation, and disposals, whereas others have no assets. Some have accounting software; some do not.
HOW MUCH SHOULD AN ACCOUNTANT COST?
As stated above, there are many reasons why prices fluctuate from accountant to accountant. So, it is tough to provide a clear answer. However, I can let you know our prices as a guide. These are accounting costs for a small UK business:
Sole Trader Accounts & Tax Return - most clients pay around £195 per year. This includes year-end accounts, unlimited support by email, tax advice, compiling a single self-assessment tax return, and filing the return with HMRC.
Limited Company Accounts & Tax Return - Most of our clients pay around £395 annually. These are small, limited companies with a single director. This price includes reviewing bookkeeping, compiling annual Ltd accounts, unlimited support by email, tax advice, compiling the company corporation tax return, and filing the return with HMRC.
VAT Services - Our prices vary depending on the size of the business and the amount of work involved. However, most clients pay around £125 per quarter, including the quarter's bookkeeping.
HOW MUCH DOES AN ACCOUNTANT COST PER MONTH?
Using the above as a guide, simply divide the charge by months:
Sole Trader Accounts & Tax Return - £16.25 per month (we prefer to bill annually)
Limited Company Accounts & Tax Return - £32.90 per month
VAT Services - £41.65 per month
AM I PAYING TOO MUCH FOR MY ACCOUNTANT?
Maybe. Maybe not.
If our prices sound more reasonable than what you currently paying, send us a message. We'll get back to you within 48 hours.
