How Much do Accounting Services Cost?
Here’s everything you need to know about the cost of accounting services for UK businesses and sole traders.
Why accountancy firms do not charge a set fee
If a friend were to ask how much a trip to the salon or hiring a building construction team costs, the answer would be ‘it depends what service you need’. Appointing an accountant
is no different.
As a client, you should be looking for the best accounting services at the best price. Therefore, you must understand and appreciate the various factors that can influence the costs. They include;
● Are you a sole trader or business?
● Will the accountant simply do your tax returns, or handle other items like PAYE?
● How many hours are needed to complete the work at hand?
● How quickly does the work need to be completed?
● Does the business work exclusively in the UK or also use international trade?
Due to these (and other) contributing elements, the costs may contribute greatly from one account to another. Similarly, the choice of accountant can influence the cost as experience and reputation come at a slightly bigger cost but will also give you the best chance of securing sizable tax deductions due to the increased knowledge base.
Ultimately, then, you should probably avoid any service that charges a ‘one size fits all’ package. Aside from anything else, it will mean you’re paying for services that aren’t actually needed.
So, how much should be paid for accounting services?
While a good accountant will build packages tailored to each client, it’s still worth knowing the ballpark figures that you can expect to encounter. First and foremost, the best firms won’t charge by the hour. Instead, they will build a price for the job.
When you are a sole trader looking to have your self-assessment completed by an accountant, it is likely that you’ll pay around £100-£150. This is unless you have a particularly complex case, in which case it may creep up into the £200-£300 category.
Many clients find that it makes sense to appoint an accountant on an ongoing monthly basis. When this is the case, your working status will dictate the costs you may expect to pay. As a rule of thumb, the following data is fairly accurate;
● A freelance contractor may pay £50-£150 per month for an accountant to complete their accounts, handle VAT forms, bookkeeping, self-assessment returns, payroll, annual submissions, and filing to Companies House.
● A sole trader or partner of an unincorporated company may pay £40-£140 for an accounting service that covers their accounts, VAT forms, bookkeeping, self-assessment returns, payroll, and annual submissions.
● Property landlords can expect to pay £100-£200 for an accountant who will handle personal taxation and corporation taxation elements for one property. The price increased for additional properties, but the price per unit decreases.
Owners of limited companies could pay as little as £100 for their accountancy services, but could also pay thousands per year if it is a larger company. The accountant can provide business accounts and submission, PAYE, self-assessment, VAT forms, Companies House filing, and associated administration costs.
How to get the best value for your accounting services
The above estimates are linked to certified and chartered accountants that hold memberships to IFA (Institute of Financial Accountants) or equivalent firms. It may be possible to reduce your costs with a student or newly qualified accountant, but cheap should not be confused with value. After all, a great accountant could save you thousands through tax savings and financial management.
Nonetheless, there are several ways to help bring your costs down when working with the best accountants. They include;
● Use an accountancy software package to record and organise all receipts and invoices.
● Arrange for an accountant to work on your case long in advance of the tax returns deadline.
● Embrace a full consultation service to ensure that the package is built around your needs.
● If applicable, provide historical data of the tax returns completed in previous tax years.
The fact is that, unless you are simply filing a self-assessment, the ongoing accounting services firms
will cost you a few thousand pounds each year. However, the right accountants will actually pay for themselves by putting your finances in much better health - not to mention the time savings.
Discover how much your accounting services will cost today by arranging a free consultation at Smart Solutions.