Advice on Accountants Fees

[Cres25]

Hi, this is my first post on here - hope someone can help!

I am in a new LLP with one other partner with a turnover of circa £100K
What should typical accountants fees be for each of the following services:

1. Preparation of Financial Statements
2. Partnership tax return
3. VAT registration
4. VAT return quarterly

(We provide all of our records on a spreadsheet to the accountant)

We have been billed by our accountant a total of £2295 for the above!

Would appreciate advice.

 

[Jenni384]

Fees depend on, amongst other things:

• Level of service - is it compliance only or are you getting quality advice too?
• Bookkeeping - are you doing the bookkeeping to a high standard, giving the accountant a trial balance and reconciled bank at the year end? Or are they doing all of it?

For the price you quote, I'd expect you to be getting good advice, and for them to be doing some or all of the bookkeeping. It's hard to say more without knowing more about your business, but it still sounds on the high side. But then, I've no idea on the specifics of the job

Edit: Sorry, I've not had a cup of tea yet and clearly didn't read all of your post. You have spreadsheets. In which case, it does sound on the high side. The problem with spreadsheets is they may not report the information in the easiest way for the accountant, but then the accountant should review it with you and work with you on it.

 

[fergywales]

I pay just over £1,200 to my accountant for EOY Accounts, payroll throughout the year and ad hoc advice. I handle balance sheet and cash book listing through the year and then just email the lot over.

With regards to the VAT return, why would you pay someone to do it, providing you'll (by my way of reading) be handling day-to-day accounts management, simple hit VAT balance in whatever accounts program you're running and fill the form in and post with a cheque (I know I know, dinosaur not doing it online!!)

 

[Williams lester]

I pay just over £1,200 to my accountant for EOY Accounts, payroll throughout the year and ad hoc advice. I handle balance sheet and cash book listing through the year and then just email the lot over.

With regards to the VAT return, why would you pay someone to do it, providing you'll (by my way of reading) be handling day-to-day accounts management, simple hit VAT balance in whatever accounts program you're running and fill the form in and post with a cheque (I know I know, dinosaur not doing it online!!)

But are you an LLP? I normally charge substantially more for LLP accounts and compliance.

 

[Michelle Carvill]

Hi there
We are a Ltd company and so admittedly not an LLP. But we too are a small team - two directors, nothing complicated. We get all of the services you mention - plus a monthly payroll. We pay £101 per month including VAT. Tax Assist Accountants - I believe they are a franchise operation. www.taxassist.co.uk

 

[Michelle Carvill]

Should also have mentioned that the fee we pay also includes bookkeeping services. We send over our spreadsheets and bank statements and they reconcile it all.

 

[CassioAcc]

For standard bookkeeping and Annual Accounts for a LTD it sounds high but as mentioned above we do not know the full range of service and advice included that could be adding to that fee.

 

[Cres25]

Our accounts are very straight forward- we get paid a set amount each month under a contract and just have standard fuel expenses etc. We provide the accountant with very coherent spreadsheets. The service we have been getting has been disappointing - the accountant failed to register us for VAT at the correct time (In fact some 15 months after we were over the threshold) despite numerous emails from ourselves about the matter. Then after we returned that forms to the accountant they lost them! Our bill last year was £600 for Tax returns so we assumed a similar bill this year. What is a reasonable amount to pay for these services?

 

[CassioAcc]

A high fee if you are not even getting the service. Why have they raised the fee so much, there must be something driving this.

As for the basic accounts fee what you paid last year is in the right ball park (even very competitive).

 

[Cres25]

The only difference this year was that we registered for VAT and as I mentioned they badly messed that up. - What I got the VAT figures from them I also checked them and found arithmetic errors -so you can imagine I was somewhat angry when I received their invoice.

 

[MyAccountantOnline]

Hi, this is my first post on here - hope someone can help!

I am in a new LLP with one other partner with a turnover of circa £100K
What should typical accountants fees be for each of the following services:

1. Preparation of Financial Statements
2. Partnership tax return
3. VAT registration
4. VAT return quarterly

(We provide all of our records on a spreadsheet to the accountant)

We have been billed by our accountant a total of £2295 for the above!

Would appreciate advice.

The fees accountants charge depend on so many factors, and it isnt really possible for any of us on here to tell you whether its a fair fee.

I would add that if you want a cheap budget service you will always find someone who will undercut that level of fees and that is fine for some - thats what they want. You pay for what you get.

If you feel that at that level of charges you are not getting value for money why not speak with your accountants and explain what you really want and agree some fixed fees with them?

If you want to reduce your fees with your current accountants one way would perhaps be to look at doing your own VAT - if you are keeping good records now it isnt that difficult.

 

[Lisette]

That looks really high to me. I suggest you shop around a bit - you could check round the forum and identify some credible alternatives. I can recommend Alan - Alpha Business Services - on here and you can google the company. He does mine and pretty much everyone I work in association with.

It does, of course, depend on what you ask for and get but it does make sense to check out some options

And definitely get back to yours and query the bill so that you at least understand what they are charging for. And if you stick with them - ask them to suggest how you can get the fees down - i.e. what you can to do make it easier and cheaper.

 

[Alison Jones]

Hi

Have you considered using a bookkeeper for your reconciliations from your spreadsheet and your VAT return. I would say the majority of bookkeepers charge quite a lot less per hour than an accountant for bookkeeping, I have gained some clients who came to me because they were paying a high amount to an accountant for bookkeeping and VAT return so they then only had to pay their accountant for year end accounts.

Alison

 

[DFL]

Comparing the fee charged to the OP to the fee charged by other accountants for other businesses is pointless.

Accountants do not offer a tangable product which are identical to each others and can be compared by price.

Some businesses want their accountant to prepare and file their statutory accounts and tax returns and thats it. They are happy with a number cruncher of little or average ability / experience and in return for these requirements get the low fees they are looking for.

Other businesses demand a bit more, want an accountant who knows their stuff inside out, can add some real value with tax planning, business development, great advice and availability and in return pay the higher fee.

Two accountants fees will always differ, its like comparing the fee paid by football clubs to footballers - footballers are footballers the same as accountants are accountants yet some like Wayne Rooney get paid a premium because of what they offer that others don't.

I would suggest that OP talks it through with the accountant, give the opportunity to let them detail the value they have given to the business and then go with your gut whether its worth it or not or whether a move may be in order.

As with all business (and personal) relationships - communication is key.