How much does an accountant charge?

[messiah]

I'm at the stage of my first business that I need to become VAT registered and hire an accountant...

However, I have no idea what would be considered a good fee to pay an accountant and am keen to get a good deal and not pay a premium where it's not necessary.

Thanks

 

[STDFR33]

To give a ball park figure, we need more information.

What type of business are you running? e.g. sole trader, partnership, company.

What is the nature of your business?

How are the records maintained?

What services do you require from the accountant?

 

[Mr D]

How much do you want an accountant to charge?

Give them loads of work to do, take up weeks of their time and expect to get charged more than if agreeing with them about what us provided and sorted as needed meaning a day or two of work.

 

[S2K]

The prices can vary considerably. Assuming you go with a chartered accountant, for a soon-to-be VAT registered business expect to pay between £800 to £1,200 per annum for year end accounts and corporation tax return, plus £100 to £150 for the director's self assessment. The bookkeeping depends on the number of transactions, I currently charge £0.50 per accounting transaction for example.

 

[Mr D]

So much for directors self assessment ?
Been seriously undercharging for that.

 

[Talay]

Per transaction accounting costs ? Bloody hell, who'd put up with that ?

To the OP. Have a meeting and keep your records in a sensible state. Use a credit card for all spending as receipts come automatically.

 

[S2K]

Talay, do you really think £0.50 per transaction is much? I have clients who prefer to give me all their receipts in an evelope every month and pay £50 or £60 per month for bookkeeping so they can focus on other matters, such as leading their business or spend time with family. The cost includes sorting out all the receipts, number them, attach them to the back of the relevant page of the bank statement (so that they are returned back to the client in good order) and separate out petty cash receipts. I don't charge for the year end adjustments, such as depreciation, those are part of the year end fee.

 

[Chris Ashdown]

Based upon the time it takes from delivering your accounts to getting the year end results back, normally about £0.75 per working hour based on the average time mine have taken with various accountants over the last 30 years which is anything from 4 to 6 months

 

[Mr D]

You handed them over early Chris? Mine tended to be handed over in November and ready to sign a week later.

 

[billmccallum1957]

We pay £96 a month, flat rate, no matter how much work is done.

Accountant does year end, payroll, any dealings with HMRC, directors self assessment.

I do a weekly spreadsheet and spreadsheet of all bank a/c transactions.

 

[KAC]

We pay £96 a month, flat rate, no matter how much work is done.

Accountant does year end, payroll, any dealings with HMRC, directors self assessment.

I do a weekly spreadsheet and spreadsheet of all bank a/c transactions.

 

[Alan]

I'm paying £1,100. I have had quotes ranging from £600 to £5,000 in the past, but I didn't feel comfortable with the cheapest service and didn't need the 'CFO' services of the most expensive.

 

[Talay]

Talay, do you really think £0.50 per transaction is much? I have clients who prefer to give me all their receipts in an evelope every month and pay £50 or £60 per month for bookkeeping so they can focus on other matters, such as leading their business or spend time with family. The cost includes sorting out all the receipts, number them, attach them to the back of the relevant page of the bank statement (so that they are returned back to the client in good order) and separate out petty cash receipts. I don't charge for the year end adjustments, such as depreciation, those are part of the year end fee.

Receipts ? Who the hell deals with paper in 2017 ?

Sorry but I didn't realise you were dealing with back of a fag packet book keeping. I was thinking about £0.50 per transaction we receive and nearly fainted at the prospective cost !!!

I retract my previous comment as I thought we were in 2017 not 1967

 

[S2K]

I guess it depends on what type of business it is. I agree that it's easier to upload the credit card transactions straight onto the accounting system but even then if the business is registered for VAT it may be a slight issue because the VAT needs stripping out plus there must be a clear distinction between subsistence and business entertainment along few other things.

 

[Talay]

I guess it depends on what type of business it is. I agree that it's easier to upload the credit card transactions straight onto the accounting system but even then if the business is registered for VAT it may be a slight issue because the VAT needs stripping out plus there must be a clear distinction between subsistence and business entertainment along few other things.

You don't upload each transaction, that being the point. The business should get gross funding from their acquirer and they will pay down once per terminal overnight unless otherwise batched. If retail for example, the EPOS reconciles the EOD and the card aggregate forms part of the bank reconciliations. If you are a builder with far fewer inputs, then it would be different.

No need to strip out VAT from the transactions, this should be done automatically when uploaded into whatever system you are using. You simply tell it whether the company regular VAT, flat rate or non registered. Exceptions, such as water where VAT is charged only on part of the bill and insurance VAT can be noted.

I guess the worst I thought accountants would receive in 2017 would be a spreadsheet but I was obviously wrong !

 

[S2K]

Being flexible is important and part of a good customer service for any business.

 

[Hawking]

Gentlemen: thank you for your sharing. I have learnt a lot.

 

[Talay]

Being flexible is important and part of a good customer service for any business.

Yeah in theory but in practice don't be a busy fool.

 

[Rickden]

There is a lot of easy to use, fairly inexpensive, accounting software, and, if you're not too sure about doing your own books, then why not sign up for a night class course at your local college.

 

[Navitasmu]

The cost of an Accountant will vary on the tasks you require him to fullfil and it could be expensive. However, to minimize business costs, many prefer to outsource all their accounting work to offshore companies in another country where labour is cheaper.

 

[johndon68]

However, to minimize business costs, many prefer to outsource all their accounting work to offshore companies in another country where labour is cheaper.

Really? I would have thought that accounting would be the last thing that a business would want to outsource to an offshore company...

 

[STDFR33]

Really? I would have thought that accounting would be the last thing that a business would want to outsource to an offshore company...

Many accountants outsource the work to India. I used to work in a practice where the work was outsourced to a company where the Indians were all ACCA qualified and charged us £7ph.

The work was done to a reasonable standard, but we had queries on every client file. They got the bulk of the work done, and we made minor, but often material amendments.

It works for accountants in the UK to outsource because there is another layer of checking to ensure that the accounts and tax return are done to a good standard. It would not work for a client looking to outsource the work.

 

[Navitasmu]

Really? I would have thought that accounting would be the last thing that a business would want to outsource to an offshore company...

Actually there are a lot of companies doing it and these offshore companies specialises in such activities. My company does offshore accounting and we have many companies from other countries outsourcing their bookkeeping and accounting to us due to our lower price compared to accounting companies and accountants in their countries.

 

[johndon68]

It works for accountants in the UK to outsource because there is another layer of checking to ensure that the accounts and tax return are done to a good standard. It would not work for a client looking to outsource the work.

Thanks for that - I can see how it would work for an accountant as, at least there is still an additional level of checking done in the UK, I guess I was thinking more along the lines of a UK business going direct to an overseas company...

Out of curiosity, did the clients know that their information was being passed to an overseas company?

 

[Draugen]

I've used four different accountants over the past decade. Costs varied from £200 to £400 per month for the full service (accounts, VAT, payroll, secretarial, directors annual return etc). Have just left KPMG Small Business, who charged a premium for doing pretty much sod all - even submitted accounts late!

My current accountant does all the day to day stuff for around £200 a month, plus they have a plan in place for what we're aiming for and where the business will be in years to come. They know my business well and the partner takes a real personal interest in me and my business (as he does with every client). It's a minefield finding a great accountant, but don't choose on cost or reputation alone, go with who you feel you can forge a relationship with,

 

[Judo Jack]

We pay £96 a month, flat rate, no matter how much work is done.

Accountant does year end, payroll, any dealings with HMRC, directors self assessment.

I do a weekly spreadsheet and spreadsheet of all bank a/c transactions.

£96 per month is fantastic can you email me your accounts name

 

[billmccallum1957]

£96 per month is fantastic can you email me your accounts name

www.switchaccountants.co.uk

 

[Overthehedge]

Wow, had a real shock reading some of these prices! My accountant charges me £150 per year for accounts, payroll and self assessment, I must have a bloody good deal!

 

[Mr D]

Wow, had a real shock reading some of these prices! My accountant charges me £150 per year for accounts, payroll and self assessment, I must have a bloody good deal!

And you could do all of them for free yourself.

More complex businesses and more work for accountants will tend to cost a lot more.
A limited company accounts I used to pay a grand or so a year and mine were likely simple compared to some.