Accountancy fees. Reasonable?

[YPC2017]

Good morning,

I’m just looking to get some idea of what people are paying their accountants? We’ve felt a bit neglected by ours this year. We’re always chasing them for end of year accounts. We've had them dropping £10k VAT bills on us at 8pm on the day they're due to be paid. This has happened the last 3 or 4 vat quarters. I realise it’s been a tough year but more than ever we need up to date accounts so we can keep an eye on things.

They’ve just contacted me to say they’re increasing my annual charge to £500 per month.

We turnover approx £350k per year. We have a couple of online stores and also a restaurant. All of the tills and revenue streams feed into Xero. We handle no cash. We’re paperless. We use Receipt Bank. We handle our own payroll and pensions. They basically handle our book keeping, accounts and VAT. Does £6k a year sound reasonable for something that’s mostly automated?

 

[UK Contractor Accountant]

hey basically handle our book keeping

why are you paying your Accountants for book-keeping & VAT filing?

Negotiate an hourly rate for your own Xero book-keeper - this will cut your accountancy fees considerably.

Put your year end accounts & tax return filings out to Tender for a fixed fee quote. I think you will also find a sizeable reduction in Fee level.

 

[MyAccountantOnline]

Good morning,

I’m just looking to get some idea of what people are paying their accountants? We’ve felt a bit neglected by ours this year. We’re always chasing them for end of year accounts. We've had them dropping £10k VAT bills on us at 8pm on the day they're due to be paid. This has happened the last 3 or 4 vat quarters. I realise it’s been a tough year but more than ever we need up to date accounts so we can keep an eye on things.

They’ve just contacted me to say they’re increasing my annual charge to £500 per month.

We turnover approx £350k per year. We have a couple of online stores and also a restaurant. All of the tills and revenue streams feed into Xero. We handle no cash. We’re paperless. We use Receipt Bank. We handle our own payroll and pensions. They basically handle our book keeping, accounts and VAT. Does £6k a year sound reasonable for something that’s mostly automated?

It's always very difficult to answer this type of question based on so little information. However it sounds on the higher end of what you'd pay a good accountant.

I suspect your question isn't based on the fee alone, the service you are getting isn't what you should expect if you are providing all information required promptly.

 

[MyAccountantOnline]

why are you paying your Accountants for book-keeping & VAT filing?

Negotiate an hourly rate for your own Xero book-keeper - this will cut your accountancy fees considerably.

Put your year end accounts & tax return filings out to Tender for a fixed fee quote. I think you will also find a sizeable reduction in Fee level.

That's one way or another is to get some quotes from other accountants who use Xero. I dont but know of a very good accountant who does if you want a recommendation.

 

[UK Contractor Accountant]

The Xero website will have a list of Xero Certified Accountants & Book-keepers.

 

[phillipZAK]

message moved to new thread

 

[Deleted member 335660]

Good morning,

I’m just looking to get some idea of what people are paying their accountants? We’ve felt a bit neglected by ours this year. We’re always chasing them for end of year accounts. We've had them dropping £10k VAT bills on us at 8pm on the day they're due to be paid. This has happened the last 3 or 4 vat quarters. I realise it’s been a tough year but more than ever we need up to date accounts so we can keep an eye on things.

They’ve just contacted me to say they’re increasing my annual charge to £500 per month.

We turnover approx £350k per year. We have a couple of online stores and also a restaurant. All of the tills and revenue streams feed into Xero. We handle no cash. We’re paperless. We use Receipt Bank. We handle our own payroll and pensions. They basically handle our book keeping, accounts and VAT. Does £6k a year sound reasonable for something that’s mostly automated?

My advice would be to seek alternative practice. They may not be cheaper but clearly you have lost trust and not getting the right service and that’s not good with a business of any size.

 

[Marcus A. Wright]

It sounds pretty steep to me based on what you have said, especially if you are receiving poor service. You will certainly find a much cheaper accountant but it may be worth asking some of your local contacts for recommendations and getting quotes.

 

[Strontium Dog]

How many entities are we talking here? If its 3 separate companies it sounds pretty cheap to me.