Accountancy fees/negotiation

[Bobb1979]

Hi all

We have had our accountant for 5 years always paying them a set fee for completing our end of year accounts.

We now feel that this fee is a little high for the bookkeeping as its pretty simple now (more organised , less paperwork invoices etc)...

Would it be seen as acceptable to try and negotiate/reduce our fees by asking the accountant ? If so, what would be an acceptable reduction, 10% perhaps ? Dont want to alienate them though as they seem to be OK.

 

[Deleted member 138423]

How are you price comparing? A good accountant is worth their weight in gold imo. You say you've had them 5 years and that 'they seem to be ok'! Talk to them yes, but look at why you think they're maybe a little highly priced as opposed to they just are.

 

[cheaper accountant]

I certainly think you should negotiate. If your accountant is spending less time completing your accounting work then you should push for a reduction in fee.

 

[Philip Hoyle]

Why risk suffering a potentially poor cheaper accountant? If you're paying the same as five years ago, then it is cheaper because fees will have increased with inflation over the past five years. Have you shopped around to even find out if a similarly qualified, experienced, reputable, accountant would be any cheaper? You may end up having to find another accountant if they take offence and you may end up paying more. If you're happy with them and they're not increasing fees due to annual inflation, I'd stay put and not risk alienating them by asking for a reduction.

However, if you're going to look for another accountant, then please at least take recommendations from similar businesses, and if you can't get a recommendation, then at least go for a properly regulated firm. Anyone can call themselves an accountant and many firms aren't regulated, so you'd have little protection if things go wrong.

 

[elaine@cheapaccounting]

Have you shopped around to even find out if a similarly qualified, experienced, reputable, accountant would be any cheaper? .

Shopping around can give you significant benefits.

However I do think most accountants would be open to discussions about splitting the compliance (year end work) and tax work from bookkeeping and this could be a good compromise to help open fee negotiation discussions.


Oh and by the way – cheap accounting can also be qualified, experienced and reputable.



However I do accept that some aren’t always this.



So do check credentials (they should be on the web site), how long the company has been registered, that you deal with a named person, qualifications and have a direct email and contact number.



It is very easy to put up a web site and anyone can say they are an accountant unfortunately.


Good luck

 

[Bobb1979]

Thanks for the feedback, exactly the reason I havent asked for a reduction incase I offend them. Its only becase they sem to be my biggest constant running fee before van insuranes which I have haggled down.

Keeping an eye on running costs of late...

 

[teddys]

Accountancy profession has indeed become a trade - with the employment market being what it is, more and more accountants are entering the practice, on top of the ever-growing unqualified crowd. The direct impact of this is that we have now everything available from £12.99 upwards!!! defying the economics of inflation etc. This tempts the clients to re-negotiate prices regardless of how happy they are with their current accountants. The sole criterion for choosing an accountant for most of these micro businesses these days is price. Many of them then end up being unhappy - many posts on this forum bear testimony to this fact!! They all have accountants but want to double check and triple check what their accountants say with many of us on here!!!

 

[elaine@cheapaccounting]

Keeping an eye on running costs of late...

As you should do

 

[elaine@cheapaccounting]

Accountancy is a service - clients want to get the best quality at the best price for the service.

Nothing wrong with that.

 

[cheaper accountant]

I completely agree with Elaine's comments. If one professionally qualified accountant offers a lower fee than another professionally qualified accountant then the only winner is the business owner.

In the current economic climate small businesses should be looking to reduce their cost base to ensure that they remain profitable and ultimately remain in business.