Question

How much should a small café expect to pay an accountant each year?

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Hi everyone. My wife and I run a small café in London as a limited company, and up until now we've muddled through the accounts ourselves. It's getting beyond us though — VAT returns, payroll for three staff, year-end accounts. I'm thinking of hiring an accountant but I have no idea what it should cost. What does a small business like ours typically pay per year? Is it usually a monthly retainer or pay-per-service? And any tips on choosing the right one — what should I look out for or avoid?

1 Answer

There's no single going rate — fees depend on the volume of transactions, how tidy your records are, and exactly what's included, so a café with VAT, payroll for three staff and year-end accounts will naturally cost more than a simple sole trader return. Many firms offer a fixed monthly fee covering an agreed bundle of services, while others charge per service or per filing, and the fixed-fee route tends to suit businesses that want predictable costs. When choosing, look for a firm that deals with hospitality businesses, is clear in writing about what's included and what triggers extra charges, and is easy to reach when you need advice. Be wary of anyone who can't give you a clear engagement letter, promises unusually low fees with no detail, or isn't transparent about who'll actually be doing your work. A short introductory chat with two or three firms should give you a good feel for the right fit.

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