Working for yourself is an exciting choice that brings several benefits, but many new business owners have the same question: How much does an accountant cost? If you’ve recently become your own boss, you’ll soon find out that the day-to-day tasks of bookkeeping and accounting can be daunting.
And while there’s no avoiding the financial side of business ownership, there is a simple way to get things done correctly by employing an accountant to do the job for you.
But how much does an accountant cost? And, is outsourcing your accountancy within your budget?
You may still find some accountants that charge by the hour. An accountant hourly rate in the UK may be anywhere between £30-150. The problem with this approach is that the business owner and accountant don’t know what the cost will be until after the work is done. This way of charging is quite old fashioned and not commonly found nowadays. When it comes to accountant fees, UK businesses should find flat fees work better.
Accountant flat fees
Most reputable accountants will charge a flat fee for their services, paid yearly or in monthly instalments. Depending on the size of your business and the services you require, monthly costs may be anywhere from around £50 for basic service levels for a more specific quote, you should contact a trusted accounting partner. Paying you accountant’s fees monthly gives you much more predictable accounting costs.
The services level provided by your accountant will largely dictate the final price.
What is included in the accountant cost UK?
There are accounting services at the lower end of the price spectrum, which may be tempting to those trying to cut costs. A cheaper firm may only provide bare bones’ services without personal contact and advice the issue is that these providers can end up being a false economy.
You may also find sole trader accountants offering lower-priced services. While these may be able to give you a personal service, they could lack the reputation and skills of an established firm.
By outsourcing your accounting to a professional, you’ll enjoy many headache-saving perks:
- Your accountant will file your annual tax returns for you
- They will keep tabs on your tax payments
- They will be best placed to offer advice on how to structure your business financially.
Most importantly, they will have the knowledge and experience to complete accounting tasks correctly and on time, allowing you to get on with your most important job: running your business without worrying about spreadsheets and documentation.
Many small business owners might think that this is a luxury only for larger, more established companies. But this is far from the truth. The reason why lies within the accountant fees.
What services are included in my accountant fees in the UK?
Every business has different accounting needs, so there is not a one size fits all’ approach when it comes to accountant fees. UK businesses can come in the shape of a sole trader, a small/medium business, or a larger company; each will require different services from their accountant. You can also tailor your accounting services based on your budget, from more basic compliance work to bespoke accounting services and support.
Individual services that you may choose to outsource:
- Submitting your year-end accounts
- General bookkeeping services
- Managing your corporation tax returns
- Handling directors’ personal tax returns
- Payroll management
- Handling VAT returns (if you are VAT registered)
- Advice on tax efficiency (including IR35 advice)
Most accountants will confirm their fixed costs with you following a fact-finding meeting or telephone call. Once they understand your requirements, your accountant will put together a package tailored to your business.
Armed with this predictable cost, you’ll be able to budget over the course of a year. If your accountants spend too long on a particular task, the extra hours are their responsibility and not yours.
Ready to work with a trusted accountant?
At UWM, we charge fixed fees. This way, you know exactly which services we’ll provide and be able to budget accordingly. After all, would you order a meal with no prices on the menu? Probably not.
Doing your own accounting can be a tricky process. The best course of action for many will be to seek advice from a qualified accountant; contact UWM today for expert advice on your situation. You’ll also find more information on our blog.
