It’s a common misconception that Accountants are expensive. Many Accountants simply don’t display prices and we all get a little concerned and wonder what they are hiding.
The simple and easy answer to the question of how much does it cost for an accountant is… it depends.
We are Accountants who offer fixed monthly fees and have been doing so for over 13 years now. Using the knowledge and expertise we have within the industry this article will explain what factors you need to consider when trying to work out what an accountant will cost you.
None of the factors taken into account below has taken into account other effects they may have such as the quality of the work, the specialist advice available, the turnaround times, the level of support, etc. This guide is purely on what affects the price.
1 – size – Accountants generally come in a couple of sizes, small one-man bands operating from home, smaller practices with a few staff operating from an office, larger practices with numerous staff and maybe multiple offices. It’s not a hard rule but generally the smaller the accountant the fewer overheads and likely the less cost.
2 – bookkeeping – bookkeeping is the recording of the day-to-day business transactions into categories (accounting for VAT if applicable). It’s a relatively low skilled area but it can be time-consuming. It’s also the basis of your accounts so accuracy is key. If you can undertake good quality bookkeeping yourself you will keep the costs down. It must be good quality though as if it’s poor then you’ll pay for it to be rectified.
3 – location – it goes without saying that if you choose an accountant based in an upmarket town or area where costs are higher then it’s much more likely fees will be higher to cover those overheads.
4 – extras – there are many different extras that you may want from an accountant but can do yourself. This could be things live confirmation statements, payroll and personal tax returns. All of these are additional services that needn’t necessarily be complex and by doing them yourself you may lower your accountancy costs. Just remember though that mistakes may cost you more in the long run.
5 – advice – many accountants now work on fixed monthly or annual fees which include a degree of advice. You need to understand the fair usage policy and what may cause additional charges. Some accountants still work on hourly rates. Chances are when you call and start chatting about the weather or what you did at the weekend then the time is being logged and you’re going to be charged. Ensure you know what you get for the fees you are paying.
As you can see many different factors affect how much you may pay for an accountant. No two Accountants are likely to be the same in how they charge so it may be more difficult to compare than you think. You should try and get a level of understandingly the types of services you may need and compare like for like. There are Accountants out there though who do package things up in a way that’s clear and includes everything you need for a set fee which may help you manage the costs more clearly.
If you want to know exactly what you will be paying and that you get exactly what you want and need then speak to us about our services by booking a Discovery Call