how much do accountants charge

how much do accountants charge

How Much Do Accountants Charge? It’s no more a hidden truth that an accountant charges according to the service provided. The number of accountants increased over a period of time, and the advisory solution provided by accountants has a lot of competition. You might be wondering that what if you ending up paying more to your accountant than what’s required. It’s all good, given that they’re saving you a lot of taxes. 

We’ve already discussed in previous articles as well that accountants don’t charge per hour. They charge you for what they’re doing for you. You’ll be charged for the things they’re helping you out with. There might be no sign-up fee, and you’ll end up paying them a monthly fee.You’re always looking out for a good accountant to manage your cash flow and help out with the taxes. Let’s summarize what an accountant does for you first: 

  • An accountant makes sure HMRC gets the right figures, and there are no rejections on your tax returns or applications. 
  • Your accountant is going to save you from falling in the trap of UK financial laws. They know the 1700 pages of the UK tax laws, and hence it’s easier for them to suggest the best way forward. 
  • Your accountant tells you where you did not spend your money wisely. They’ll talk to you about different tax exemptions and allowances to save your day. 

Know that there’s no formula to define what exact amount must an accountant charge. It totally depends on what services you require from an accountant. Although it’s a popular opinion that once you take an accountant on board, its way easier to hand them different tasks and expect everything done in no time. So let’s take an example of VAT payment. Most people end up paying more for VAT because it’s really complicated and no one wants to get into it. Talk about saving thousands of pounds per year the moment you decide to handout the VAT job to an expert. 

How to Choose an Accountant?

You know the service you require help with. Now is the right time to find out how to choose the right accountant. Make sure sorting out by the right qualifications. If an accountancy firm defines themselves associated with ACCA, ICAEW, ICAS, IFA, CIMA, CIOT, it will be a good idea to onboard them. It’s really easy for anyone to claim themselves as professionals. Make sure you’re looking at the right credentials to get the right firm onboard.  

Make sure you’re comparing the pricing. You’ve got to compare the price each accountant is willing to pay for the services they are providing. Yes, it’s possible for you to find an accountant with the right qualifications at the right price. So keep looking for the perfect one. 

Try to find an accountant who has already worked in an industry like yours. Industry-specific accountants don’t go wrong with your business, as they know what taxes your eligible for, and how your business works. They’ll help you out with the right advice too. 

How about getting an accountant that helps you sort out your transactions and taxes using the right accounting software? There are accountants who give hands-on training to use these accounting apps too. 

Now that you’re at it, find out the right accountant by surfing through the experience of all the firms. Experience helps, and will turn the trouble at bay for the longest time. So it’s not important to have a firm on board with 20 years of experience, but 2-3 years is a decent experience to consider. 

How to Pay the Right Price for the Right Accountant?

As discussed already, accountants don not charge per hour. So if you’ve got the right accountant for the right service, how much do you charge them for a respective service? 

So you google search accountants in your nearby areas, you get the right suggestions, and you approach them. Now when you get on a call with them, they’ll figure out what services are you looking for. They’ll give you an annual rate for the service they want to charge you for. 

What are some standard charges, you ask:

  • If you’re looking for a contractor or freelancer accountant, the standard fee is around £50 to £150 per month. This includes accounts taken care of, VAT forms done right, self-assessment forms, payroll management, end of year submissions and filing with company house. 
  • For a sole trader or limited company, the ideal fee is around £30 to £150 per month. They’ll cover the services mentioned for the contractor accountants. 
  • Landlord accountants charge more comparatively. The charges depend on the number of properties. Normally, a landlord accountant charges between £100-£175 per month per property. 
  • Limited company accounting fees differ from business to business. Fees for limited companies start from £100 and go over £1,000 a month depending on the complexity of each business. This fee includes self-assessment, business accounts preparation and submission, company house submission, VAT returns, payroll, bookkeeping and so on.

Nothing comes at a fixed price. You’re looking for the best services. So it’s always a good idea to go for services or accounting solutions that are business-friendly, yet there are little chances of blunders. Let’s talk about a perfect deal locked. Look out for all these deals on accounting firms. Trust us when we say that these won’t break your pocket or disappoint. Scroll through and find the perfect services for your business in no time. 

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