How Much Do Accountants Charge

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Are you wondering how much do accountants charge? Depending on whether you simply require a tax return or you require a typical set of accounts for a small business, the price usually ranges from £75 to £500. This price range can differ depending on the current state of your company.

If you outsource your accounts, the cost of hiring an accountant will depend on a few aspects. For example, your business size, type (limited company or self-employed), how many directors and employees, and where you are based are all aspects that are considered before you are provided with a quote.

If you require a self-employed tax return filed with a set of accounts, you can expect to pay anywhere between £250 and £1,000, excl VAT.

Limited company accounting fees tend to increase based on the businesses’ turnover and the number of people employed by the company. Services such as business accounts, payroll services, and VAT returns are requirements that will add to the monthly fee. If you require tax planning services, you can expect to pay at an hourly rate between £120 and £150.

Can anyone do my accounts?

Technically, yes. You can appoint anyone to help you with your accounts and tax returns. However, using a chartered accountant to manage your accounts will help you save money in the long run. You will also have peace of mind that a professional will take care of your business accounts.

Qualified accountants can assist you with business planning advice, identifying tax savings, and taking care of payroll services, corporation tax returns, self-assessment tax returns, annual accounts, and VAT returns.

Hiring an accounting firm means you will gain benefits such as:

Why Hire TaxBite

The specialised team of chartered accountants at TaxBite can help take the pressure of accounting off your shoulders. Contact us below for a calculation of your current tax position and any room for more tax efficiency.

What will the accountant need from me?

Depending on if you’re operating as a limited company or sole trader, a significant amount of the documents and information required is similar.

You must provide your accountant with details such as business accounts, income, and expenses. This is so that the profit of the business can be calculated. See below our checklist of documents that an accountant will typically require:

If you already have a bookkeeper or prepare your own books, some of the information or documents above won’t be required. If you use an online accounting system or software such as QuickBooks, Sage, or Xero, an accountant will require access.

Aside from the business information required above, accountants require some personal information that is to be reported on your self-assessment tax return.

What will you be paying for?

When you hire a professional accountant, you ensure full tax obligation compliance. In addition, hiring a professional to manage your accounts will give you peace of mind that your tax returns are accurate and on time and that your tax bill remains as low as possible.

Paying accountancy fees generally covers basic accounting services, annual accounts, quarterly vat returns advice, basic self-assessment services, tracking of expenses, and good record keeping. Payroll fees for limited companies will be at a higher monthly fee.

Below, we outline the accounting services covered by a typical monthly fee.

Getting The Business Started

An accountant will help you get your business started by figuring out which business structure is best for your business. Whether that’s registering as an LLC, sole proprietorship, corporation, or partnership, an accountant will be able to help you decide based on your goals.

Accountants are able to support new businesses by carrying out a financial analysis of their business plan, as well as helping you choose which accounting software to go for.

New businesses will need to open a business bank account, which an accountant can also help with and advise on.

Day-To-Day Business Operations

Many self-employed people and new business owners need a qualified accountant to help with day-to-day business operations. Accountants can help you by simplifying and helping you understand business expenses. They can also manage your payroll and any payment methods you have in place.

Accountants also provide professional advice regarding any upcoming tax payments based on your expected turnover. Your accountant is also responsible for closing financial books at year-end. At this point, your accountant will process your tax returns and essential documentation with HMRC and Companies House.

Scaling Your Business

Scaling a business is a vital part of company growth, and an accountant can help you by managing the financials and ensuring investments are tracked and documented sufficiently.

General accounting for small businesses

Small businesses can be classified as anything from a limited company (up to 50 employees) to a self-employed contractor. Typical accounting fees and packages for a small business include:

Typical accounting fees for smaller businesses can be between £60-£250, depending on company turnover, services included, and where you are located in the UK. Small businesses with a higher annual turnover and more employees could be charged higher.

Self-assessment and tax returns

In general, accountants charge a one-off fee to process annual self-assessment returns. You can expect to pay within a range of £150 to £250, but it could range higher due to the complexity and annual turnover of the business.

The higher your income, the higher the accounting fee will be. Also, it’s likely to cost more if you have multiple streams of income. 

A reputable accountant will be able to identify tax savings as well as save you time. Contact the team at TaxBite today for advice on saving money on tax.

How to find a good accountant

A good accountant can really make your life easier, so it’s essential you’re armed with enough information to select a great one. 

Take your time

The most important thing to remember is to take your time. There are many aspects that should be at the forefront of your mind when choosing an accountant. Such as; your accountant’s location, what accounting software they use, their workload, how much the accountant costs, and their background/specialist services on offer.

Your company would do well to secure a capable, experienced accountant to handle the finances – which is the most important area of your business.

The best accounting firms save your business time and money each and every year.

Qualifications

It’s important you choose a regulated accountant, such as a chartered accountant. They come highly qualified, having completed a degree, professional competence, and workplace experience.

Accountant Experience

Next, you’re going to want to find an accountant with solid experience preparing and submitting returns and financial documents for businesses of a similar calibre to yours or where you project to be in the coming years. It’s important you work with an accountant or an accounting firm that can grow with you and assist you as you gain momentum. If they have large clients already, this is a great sign they will be able to manage you well.

Many businesses are choosing to work with TaxBite chartered accountants due to the points mentioned above, so get in touch with us for advice on personal accounting, company accounts, and UK tax law.

How Can I Save Money on Accounting Fees?

As a small business, it’s essential you’re always on the lookout for ways you can maintain your profits to keep growing your business. 

Using an online platform or software such as Xero or QuickBooks can assist you in getting your ducks in line and ready for your tax return. In addition, the monthly fee for software such as this is usually much less costly than an accountant.

If your company does not need payroll services or VAT returns, it may be worth hiring an accountant for a monthly, one-off fee instead of paying monthly.

What’s Involved in Hiring an Accountant?

Smaller businesses looking to hire an accountant should consider their business needs, what services might be required, and the type of business they’re running. 

A new accountant will require the following information from you:

A great accountant will review your supplied documents in order to specify the type of service you will require.

What Should I Expect from My Accountant? What Will They Expect of Me?

As an expectation, all accountants are expected to generally cover basic self-assessment services and ensure all fillings are ready for submission to HMRC or Companies House on time. Therefore, you should be informed months in advance to give you an adequate amount of time to make the payments required of you. 

Even if you’re using online accounting software and bookkeeping services, good accountants will question how your expenses are allocated; this is to help reduce your tax bill.

A great accountant will be proactive in helping you save money, grow your business, offer business planning advice, and provide any financial tools to help you succeed. 

In order to do their job right, you will be expected to answer questions your accountant has for you accurately and timely. As long as you are open and cooperative, you will be able to work well with your accountant. 

Any late or incorrect information will mean you are setting up the accountant for failure that is going to impact you and your business.

What Is Usually Included in an Accountant’s Monthly Fee?

While some smaller businesses and the self-employed can benefit from a one-off service, monthly fixed fees are required for many business owners requiring VAT and payroll services. 

Typical services included in a fixed price with most accountants may include:

It’s worth checking with your accountant if all the services above are included. Service business accounts may be charged typical one-off fees on a service-by-service basis.

Why you may not want a cheap accountant or tax service?

Your business’s finances are an essential part of its growth and success. However, hiring a cheap accountant can be a risk, as the reason it’s cheap could be due to a lack of quality and experience, which means you may be fighting for your accountant’s attention. 

It’s worth investing in a professional, proven accountant that you can trust with this immensely important part of your business operations. Contact the team at TaxBite for a quality service.

How much does an accountant cost for a small limited company?

How much does an accountant cost? It’s a challenging answer to sum up without knowing the ins and outs of your business. 

Small limited companies can expect to pay within the range of £90-£160, depending on the size of your company. The rate is also dependent on whether the business owner requires services to manage and file Corporation tax, Payroll returns, yearly accounts, VAT returns, and advice on managing their cash flow.

How much does an accountant cost for a sole trader?

Sole traders generally pay around £60 per month which will generally cover basic accounting services.

How much does an accountant charge for a Self-Assessment?

Those looking to hire an accountant to help submit their self-assessment tax return can expect to pay up to £250 each year. However, a typical accountant’s cost may equate to more depending on the complexity and income.

Get Started

From the myriad of accounting firms online, we understand hiring an accountant can become confusing for a new business owner. Our trusted team of accountants have proven experience helping businesses grow, assisting with tax liability compliance and helping you understand tax. We offer many different packages, whether you are looking for a fixed monthly fee or a one-off payment.

Let us assist you in making the correct business decisions and offer stellar tax advice. Click below to chat with us now.