Reasonable accountancy fees

A question about : Reasonable accountancy fees

Hi,

The accountant that was suggested to me just gave me his fee schedule and essentially for Ј1200 it covers the basics of year end prep and dividends and PAYE for the sole director of a limited company.

To me this seems a little steep, as:

I have no stock or premises. All virtual
Maximum of 8 - 10 invoices a month.
No bad debts, no debts full stop or any other business related loans etc.
Not VAT registered.

I am not saying it is a bad price, merely that I suspect it is expensive. Opinions?

Best answers:

• Are they a qualified "chartered" firm of accountants? If so, that's about average, you'll find cheaper and also more expensive.
  The term "accountant" isn't protected so anyone can set up a firm and call themselves accountants, whether or not they've passed exams, got experience, have insurance, etc. That price is very expensive if they're not "chartered".
  Like anything else, you'll always find cheaper and more expensive service providers. What about non-financial matters? What is their service like? Are they convenient? Do you get on with them? No use hunting out someone cheaper if that's detrimental to you in other ways. Why not talk to a couple more accountants and get quotes from them, then you can choose who suits you best bearing in mind all factors, not just the cost.
• I tried a cheaper accountant once, service was worse, moved back. My current practice have a VAT specialist who's authored textbooks on the subject - not that I often need an answer to a complex VAT problem, but if I did... You get, to an extent, what you pay for
• Ј100 per month, that equates to 2 hours work, not so bad really
• Offhand, it looks like he might be trying to get rid of you - he knows how much you're doing & yet he's asking so much that you'll come here for a reality check? Or did you not actually budget for him at the start of the year?!
  If you get on with the bloke & any staff, if you do give him a bit of work calling for advice, if he does steer you when planning things, if he mentions you to other clients thus putting business your way - he might be worth every ha'penny.
  If you think it's over the odds, give him the weekend to get over the end of the self assessment deadline & make a date to have a chat. He may agree he's a bit more than you currently need & suggest a smaller business or more limited service. If you might go VAT registered in the coming year, might need to apply for loans or grants that require complex form filling, might change premises or take on staff - he may be worth staying with for the reassurance.
  Your accountant can be your best friend in the lonely bewilderments of business. If this bloke doesn't suit, ask him to suggest an alternative as well as others!
• It sounds expensive, but not extortionate, get a couple more quotes to compare would be my advice, try different sorts of firms, for a variety - standard highstreet, one man band, possibly even online if you are comfortable with that.
  Re: 2 hours a month - I wouldn't think this would take me 2 hours per month, if there are IR35 considerations and calculations it might be a bit longer than just normal Payroll submissions etc. but still not 2 hours per month.
• As with any sort of service that you're buying, you should get three or more quotes, then you are in a better position to compare.
  Our accountant charged us Ј1800 fixed in the first year (ie, no matter how much work we caused them, the figure wouldn't change), and in the second year we were on an hourly rate - the fee went down, as by then we knew what we were doing and didn't need to ring them every 5 minutes to check that we were doing it right. We looked at three accountancy firms, and the ones we use were in the middle price-wise - but we liked them, they were conveniently located, and we liked the idea of the fixed fee for the first year.
  For that, we get the books done at the end of the year. I deal with all the VAT, RTI, NI, Companies House, invoicing and general bookkeeping. BUT, more importantly, I get peace of mind, knowing that things have been done right.
  Like works of art and antiques - you don't want a cheap accountant!