How Much Do Accountants Cost?

Finding the right accountant and the average accountant cost can be difficult. This article looks at the accountant cost, their services, and where to find one.

It’s essential to weigh your options and find one that fits your budget and provides the services you need for the business structure. Depending on the size of your business and the complexity of your finances, you may even require multiple accountants.

When choosing an accountant, there are a few things to consider. How much experience do they have? What services do they offer? Do they specialise in certain areas?

Accounting fees usually differ based on the size of your business and the services you’re looking for. Generally, a larger business will pay more than a smaller one, but it’s essential to understand the rates of different services.

How Much Does an Accountant Cost in the UK?

The average cost of accounting fees in the UK varies widely. It can range from £50 per hour for a sole practitioner’s personal tax return to thousands of pounds per year for a large firm for Corporation Tax Returns and year-end accounts.

The business structure of a limited company account is usually more complex and expensive than that of a sole trader. However, the cost of an accountant will depend on the services they offer and the complexity of your business finances.

An example of the cost of accounting fees is for an online practice called The Accountancy Partnership; they offer a fixed fee from £24.50 per month for sole traders and partnerships and £54.50 for Limited Companies.

As a small business, you may also be able to negotiate rate discounts based on volume or long-term contracts.

Business Accountants Quotes

It’s always wise to get quotes from several accountants before deciding. Comparing accounting fees, services offered, and the overall experience of each accountant will help you find the best option for your business.

Most accountants offer a free initial consultation. It helps the accountant understand the business and get to know the accountant and the services they offer. Make sure you have a list of any questions you need to ask.

When getting a quote, ask precisely what services are included and any additional charges the business may incur. Also, confirm the estimated time frame for the completion of your job. This will help ensure you know what to expect from the accountant in the future.

Accountants Cost – Self-Assessment Tax Returns

A Self-assessment tax return can be the cheapest set of accounts, with prices starting at around £100. Accountants charge this for a basic return, which only includes income and expenses; there may also be interest, pensions and benefits such as the State Pension.

If you have more complex financial affairs, the average accounting fee of your self-assessment tax return may be higher. In this case, an accountant can provide expertise and guidance to ensure you file your tax return correctly and accurately.

Professional accountants or tax advisors may charge an hourly rate to complete more complex tax returns, and depending on how long it takes them to complete your self-assessment, the costs could be up to hundreds of pounds. In most cases, agreeing to a fixed fee for tax returns is better.

Small Business Accounts Costs

You’ll generally pay more for a Limited company year-end accounts than a Sole Trader or Self-Employed individual. A Limited company is required to prepare annual accounts to submit to Companies House and corporation tax returns CT600.

Accountants can provide additional services, such as business planning advice, bookkeeping, payroll services, forecasting and tax planning, which can increase the cost of your accounts but can offer tax savings.

For a small business, an accountant may be able to offer a package rate that simplifies the accounting process and ensures you only pay for the services you need.

An accountant might charge more for larger businesses as they may include a broader range of financial activities. These include budgeting, forecasting, cash flow management, and business consulting. They will know tax avoidance legislation to ensure you comply with the various tax rules.

The minimum accounting costs for a small limited company are around £300. This is for a company to complete their bookkeeping and does not require further services. I do not recommend this route if you are planning to expand or are unsure of bookkeeping rules.

Average Accountants Costs

Some accountants charge hourly rates, while others offer fixed price monthly fee. Hourly rates can range from £25 to £150+ per hour, depending on the accountant’s experience and the complexity of the work.

Finding an Accountant in the UK

Finding an accountant in the UK is not as difficult as it may seem. Numerous qualified professionals in every city and town can provide reliable accounting services. You can find chartered accountants and qualified professionals in IAB and AAT.

The best place to start your search for an accountant is with personal referrals from other business owners or acquaintances you trust. Ask about their experiences with their accountants and get some insight into the services they have received.

There are several ways to find local accountants. You can search online for reviews of accounting firms in your area or contact your local Chamber of Commerce to inquire about certified accountants who can help. It might be worth asking local FaceBook groups for recommendations if you are a small local business.

Most accounting software providers also have a directory of accountants who have completed a course with their software. It is worth looking at Xero, Sage, and QuickBooks.

Once you have identified a few potential candidates, it is essential to research them thoroughly before signing any contracts. Check each accountant’s credentials, inquire about their fees, and ask for references from past clients.

How do I pay my accounting provider?

Most accounting firms in the UK accept payments online or by bank transfer. Some may also accept cash, cheques, and credit card payments. It is more common now for accounting fees to be paid by Direct Debit at a fixed monthly fee for the service provided. One advantage of this is that there are no hidden costs or unexpectedly high-value invoices.

It is essential to read the terms and conditions of any agreement before making a payment to understand all the costs involved.

How you can Save Money on Accountants Fees

There are several ways in which a small business can save money on accountants fees. These include:

• Keep accurate records and provide all the relevant documents to your accountant as soon as possible.
• Using automated solutions for bookkeeping, such as online accounting software.
• Being proactive with planning to take advantage of tax relief opportunities.
• Take advantage of Online Accounting services, which are typically more cost effective than traditional accounting firms.
• Utilising the HMRC’s online filing system and ensuring all deadlines are met.
• Using accounting software to submit tax returns online.
• Know your tax obligations so that you can budget for them.

It is also vital for small business owners to shop around for a good deal, as fees can vary significantly between accountants, so make sure to compare prices and ask for quotes. Ultimately, the best way to save money on accountancy fees is to be organised and prepared with your financial documentation so that your accountant can do their job quickly and efficiently.

An Accountant can save you money on business finances

Ultimately, an accountant can help you save money on business resources. By being knowledgeable in taxation and finance, they can provide invaluable advice regarding budgeting and forecasting.

They can also identify ways to reduce costs and increase profits while helping you comply with all relevant regulations.

They may also reduce the cost of accounting software and other resources like Dext for importing bills and expenses. Accountants are often offered reduced prices for purchasing large quantities of licences and can pass this on to the client.

Accountant Services

When looking at the accountant cost for a small business, it is essential to ensure that the services they offer meet the requirements of the business. It doesn’t matter whether you are a sole trader or a Limited company; there are deadlines to meet. Some of the services that you may require are:

Self-Assessment tax returns

All directors and self-employed individuals in the UK require a self-assessment tax return. Ensuring that your accountant can manage this correctly and efficiently to minimise costs is essential. If your return is more complex, ensure they have the knowledge to complete it.

Limited Company Accounts

Small businesses should have a reliable, professional accountant who provides limited company accounts and a corporation tax return. This will help you accurately understand your business finances and comply with all relevant regulations.

Bookkeeping Services

Good bookkeeping is essential for any business. An accountant should be able to provide bookkeeping services for entering sales invoices and business expenses. The average cost of using an accountant for this service might be higher than a bookkeeper. A business owner might use the services of a bookkeeper and an accountant to reduce the costs of annual accounts.

Payroll Services

An accountant’s payroll services are a great way to save time setting up and managing in-house payroll. A good accountant should be able to manage your payroll correctly, ensuring that all HMRC deadlines are met and your employees receive their wages on time.

It is also worth checking out the prices of a small business’s payroll service provider. The average payroll fee is typically lower and will be a fixed monthly fee plus a figure per employee.

VAT returns

Managing VAT returns correctly is crucial for any business’s financial responsibilities. Seeking the assistance of an accountant can guarantee timely and accurate filing, preventing any penalties for missed deadlines. The fixed fee accounting service for VAT returns might be cheaper with a bookkeeper.

Tax planning

Tax planning is a crucial area that an accountant can advise on to help reduce your tax liabilities each year. They can provide strategic advice and explore options to reduce your tax bill. Knowing when and how much the corporation’s tax return is essential for a limited company.

Accounting Reports

An accountant can provide you with detailed reports that can help you keep track of the financial performance of your business. This will allow you to monitor cash flow and budget for the future and even facilitate decision-making. The main reports required are the profit and loss statement, balance sheet and cash flow.

Is Hiring an Accountant the Right Choice for My Business Accounts?

The decision to hire an accountant for your business finances depends on several factors. It is important to consider the cost-benefit and whether you need their services.

If you are managing complex accounts, require specialist advice or have limited knowledge of tax legislation, then hiring an accountant might be the best choice for your business. However, using a bookkeeper or payroll service provider might be more cost-effective if you need help with straightforward bookkeeping tasks and submitting tax returns.

Check for Hidden Charges

Although you might agree to a fixed price for accounting fees, it is worth checking if there are any extra costs. For example, paying for the accounting software monthly fee or tax advice is an additional cost.

Online Accountants

As more businesses move online, using an online accountant is becoming more common. This can offer a small business cost savings and the convenience of not having to meet in person. They will provide various accounting packages for a fixed monthly fee.

Online accountants can offer services for a Limited company and individual self-assessment tax return. They can complete the returns for both HMRC and Companies House.

While there are many advantages, ensure that you research any potential online provider as they may not have the same level of expertise or ability as a traditional accountant. A business owner may prefer the personal touch of a trusted local accountant rather than never speaking to anyone or a different person each time.

Can I complete our Business Accounts?

If you want to save money, you can manage your business accounts yourself. However, you must be aware of the many rules and regulations, which could be costly if mistakes are made.

The main benefit of doing your own accounts is cost savings, as you only need to pay for the software or services used. Completing a personal tax return is easier than completing a full set of company accounts.

It is worth assessing the complexity of your accounts and your experience in finance and bookkeeping before deciding whether to complete your business finances yourself or hire an accountant.

Accounting Fees – Conclusion

When determining the cost of an accountant’s basic accounting services, consider the business needs, the complexity of your accounts and the services you require. Make sure you shop around for quotes from different accountants to get the best rate. Compare both fixed fees and hourly rates,

Ensure they have the necessary experience and qualifications to provide professional advice. Ask if there are any hidden fees or extras, such as software fees or payroll fees, that you would need to pay for. Taking the time to find the right accountant is essential for keeping your business finances in order.

Overall, hiring an accountant for a Limited company or a self-employed person to complete the business accounts and tax returns can be a great way to save time and money and ensure that all of your financial obligations are met correctly.