How much to pay an accountant?

[mangoprint]

I'm asking this on behalf of a friend who has just started out in business.

Basically he runs an online shop around full time employment and his 1st tax year is up.

He is voluntary VAT registered and a limited company. He has only made an approx profit of £2500 for the first year (13k turnover minus new laptop, material costs etc etc etc). All of his accounts are presented in printed reports of sales and purchases from Kashflow, along with the usual monthly bank statements and monthly Paypal statements.

He will soon be unemployed by his place of work so he wants Paye setting up from his own company (he wants to concentrate on it full time from the beginning of April 2010).

What would you say is a reasonable amount for the accountant to charge to do this return? I have a feeling he is being way overcharged.

Thanks

 

[Dawg]

London 'friend'? Very simple accounts from well prepared records? £600+, depending on whether it's a City firm, (£600 + arm and leg) or an solo Southall bean counter.
Outside London...knock off a few quid but not many. £400+

You can tell your friend the old adage: A decent accountant will often save you more than he/she charges.

 

[mangoprint]

There is approx 50 purchases and 50 expenses. A mixture of payments to Paypal (from store) and bank account.

 

[KM-Tiger]

If the records are in tip-top order you should be able to get that done sub £400.

But do consider the quality of advice, and is it going to be available on an ongoing basis?

 

[elaine@cheapaccounting]

How long is a piece of string - have a look at the thread on how to select an accountant which should help.

 

[mangoprint]

Thanks for the info. It really helped my friend resolve the issue

 

[mike7777]

what a stupid question, its all relative no?

 

[mangoprint]

relative to what you earn? Did I not put the turnover and earning in this thread then?

 

[SCArt]

Interested to see that a reasonable figure for a similar setup to mine is around £400 outside London. I have just been quoted £700 - £1000 in Berkshire (although we tend to pay London prices here).

But will definitely get another quote.....

Thanks