One of the first things that an entrepreneur wants to know when communicating with us is “How much does an Accountant cost? Companies charge their services. Like any service company, an accountant is providing something that you cannot see immediately or accumulate and set aside. It seems that you are not buying a new car, and you can decide to buy a red or a blue one, or get additional things like leather seats and a roof bar. But, just like buying a car, it is important that a business owner choose the right type of accounting service for their needs, and regrets it even more.
What kind of services does an accountant offer?
Simply put, an accounting agency will provide two types of services.
Type 1- Compliance
This is all you need to stay legal and on the right side of the tax man.
- Annual accounts
- Corporate Tax Returns
- VAT refunds
- Payroll and PAYMENT
- Income tax
- Automatic registration
- Dealing with HMRC
Type 2 – Advice and Consulting
A range of services designed to help improve your business, make more profits, create efficiencies and act as a launching pad.
- Management Accounts
- Benefit Analysis
- Strategic plans
- Run your board of directors
- Suggest software and installation recommendations to run your business more easily
- Working with other consultants to promote your business.
The price of your accounting services will depend on the combination of Type 1 and Type 2 services you need. Unfortunately, some business owners focus on the cost of Type 1 Compliance services and look for the cheapest accountant, whether it has a local office or an online service. Then they discover that they need more advice to help their business grow or to solve a problem, and they cannot get the accountant that provides them to provide them with the Type 2 service they need. Or, it will charge hundreds or thousands of pounds charged more than they originally decided.
As you can see, there are many different options and options available. Each time we offer a quote, we offer three available service options called bronze, silver and gold.
Bronze Services – Type 1 that will take care of the tax man and help him sleep at night
Cash services: type 1 plus some advice and assistance of Type 2 to keep you on track every quarter
Type 1 Gold Services plus many Type 2 services and support, so we are acting as an outsourced Director of Finance.
How does the type of service affect the cost of accounting services?
A “Bronze” package of Type 1 compliance services for a Limited Company will be between £ 150 and £ 300 per month. Factors that affect the location of your business include this scale
- In what type of sector do you work?
- How many employees do you employ?
- Are you registered for VAT?
- What are your annual sales?
- Does your company have stock
- How good are your accounting records
There will be between £ 300 and £ 600 per month in the cash package that will incorporate the Bronze services and send a quarterly meeting or call, a review and maintenance of your software such as Zero, Vend or bank receipt. There will be a Gold package in the management accounts, which will be executed for board meetings and a series of intensive care projects, such as improving cash flow, cost reduction and installing a software application of between £ 600 and £ 1250 per month.
So how much does an accountant cost? Well, according to our own services, annual costs can be between £ 1,800 and £ 15,000 per year. In some special cases, the rate may be lower or higher than that range. OK … can I do some of this with myself?
You can do it yourself! But a price.
Recent progress in excellent accounting software such as Xero and Free agent has all the tools to allow a business owner to prepare and submit their own VAT, payroll, annual accounts and tax returns. . You can also use some articles on tax deductible costs to refrain from maintaining your legal taxes. In our experience, when we do a job where the business owner has done things, we see a series of results (these are real-life examples).
- Salary declared in the accounts when the company is not registered as an employer (£ 2,000 tax for 3 years)
- VAT claimed on dividends and salary (£ 2,600 without payment)
- VAT accounts and deadlines have always been lost (£ 4,200 of fines from the Chamber of Companies and VAT)
- Double sales recorded (tax paid in excess of £ 7,100)
- But we see some wonderful financial managers who are mainly involved in the right things, and file their VAT and payroll on time.
However, while he doesn’t pay money, he certainly isn’t getting the job for free. You are paying a price. And for a long time, that price is more than you think. Schedule research, accounting hours, call HMRC for help, fix the things you do … and then think about how much additional income and earnings you could generate by using these hours to sell and sell. Boost business development. In addition to the suspicion of the doubt that it may have fallen on a final VAT shipment that HMRC could find 18 months ago when they randomly inspect their business. If you are a business owner and “get it,” you will probably see your accountant cost as an investment rather than a cost.