Paying an accountant his fee is a big ask and require a great deal. The primary headache is to figure out how much does an accountant cost. You pay accountants for top-notch services. The accountant’s fee depends on the services you require and the scale of your business. If you know your business and its requirements well enough, then the process of figuring out the need for accounting service your business requires is pretty straightforward.
Accounting for small businesses
Small businesses can be of any kind, from a limited company to a self-employed contractor. These sorts of companies employ a small number of people that can be up to 50 people. Businesses of this scale require multiple accounting services. They can get them all in the form of a package.
Typical accounting services include:
- Preparation of annual accounts
- Bookkeeping
- Corporation tax returns of the business
- Personal tax returns of the owner or director
- Payroll
- VAT returns
- Further advice on the tax affairs
You can get these services usually in the form of a package varying differently with accounting firms. You have to pay the firm on a monthly basis.
How much does an accountant cost and how to pay them?
People usually pay a monthly fee to the accountants. However, some prefer to pay them on an hourly basis. You can choose to either hire them on a monthly basis with a fixed fee or on an hourly basis for a specific service.
The question of how much does an accountant cost hugely depend on the kind of services your business need. An hourly fee for a specific service may range from £25 and £35 per hour. The fee can go up for specialist services. Tax planning and business planning advice may cost you more. The price can range from £130 to £150 per hour.
Self-assessment
Accountants determine self-assessment tax returns, and they can save you money with their skills. They usually look for anomalies in the tax affairs during your annual accounts and resolve any issue that can be found in your accounts.
You pay your accountant for the timely submission of your tax return. Any late submission can cost you heavy fines from HMRC.
This process ensures your safety from HMRC’s inquiry. Clean tax handling means that your business is clear. Also, your business doesn’t have any tax liabilities.
Payroll
The payroll process is not simple if you are holding a high number of employees. An accountant can submit PAYE on a monthly and quarterly basis. An accountant needs to maintain employee salary statements and also process paychecks. They also maintain payroll files and create reports. Payroll accountants make sure that your business meets all payroll procedures are in compliance with governmental laws and policies.
VAT returns and business accounts
A limited company registers itself for VAT. If your company reaches £81,000 turnover, the company needs to submit VAT returns on quarterly basis. If you are hiring an accountant, he ensures its timely submission and smooth process.
You can complete VAT returns all by yourself, but it is not recommended. You can get confused with so many different VAT rules. Some services are VAT-exempt or have a reduced rate, which might prove difficult for you to figure out.
Accounting for business includes some key tasks. An accountant can maintain a complete record of your income and spending. They can correctly determine financial information from the different transactions in your business.