How much are you paying your UK based accountant?

[Platinum Matt]

I am paying over £3,000 per year to my accountant (to do my books, simple payroll, company accounts and personal accounts for my IM business) and I have been for years.

I can't help but feel a little ripped off but maybe this is the going rate?

What are you paying?

[pjCheviot]

Matt

Every business is individual and I very much doubt that you would get the answer you are looking for here. If you've been paying the same for years - you must have been getting good value up to now?

Without knowing exact circumstances but to include Payroll (however simple), Company & personal accounts - you may not be getting ripped off like you think.

Shop around accountants in your area - they will all be keen to take your business and you may get the deal you are looking for. Ask for quotes. An initial consultation is normally free.

Just my thoughts . . . .

[tonyscott]

I'd expect to pay around £1500 for that

Tony

[kenj]

It sounds about right to me.

less than 300 per month.

depends on the shape and size of your business.

[Platinum Matt]

Yeah, seems like they "think" of a figure.

Was hoping for more solid answers like "I pay this" tbh but thanks for your replies guys.

[JayXtreme]

Too flippin much is my answer...lol.. just kiddin', mine is worth every penny.. and she's a few pennies more than your currently paying too

The answer is subjective...and relative to the tasks being carried out.. we really can't say what is a good figure, because we don't have all the facts..

Peace

Jay

[Bev Clement]

I can tell you how the figure is worked out, having worked in accountancy in the UK. The majority work on the same formula.

Every member of staff is charged out at a set rate.

Time sheets are kept and a record is made of the time spent on a client's job.

But, and this is a huge but, most work in 15 or 30 mins slots.

Let's imagine I was still in the UK and was working for your accountants.

You get a letter for the revenue and you need to ask me about it. You phone, I take the call and give you the answer. Now that call takes 5 mins, but I have to keep a record of my time in 15 mins, so you get charged 15 mins.

In the next hour I take 10 phone calls and each on is only 5 mins = 50 mins. However, because we work in 15 mins slots, I allocate 15 mins to each person.

I start work at 9.00 and by 10 am I have 2.5 hours work charged out. That's without any client's work I might have on my desk.

Your audit fee last year was say $2700 so it is increased by 10% to allow for inflation.

That amount is broken down to the different levels of staff and they are given a time budget to work on.

Say a member was given 20 hours to do the job, and they took 15 hours. It is unlikely the cost would go down.

In fact most people think if they do most of the work themselves then the fee will be reduced.

In all my time in accountancy I am guessing less than 10% of fees dropped from 1 year to the next.

I went to work for a charity, and the auditors work dropped from 5 days to 3 day on the premises, because I did all the work for them. The fee increased, so I contacted them told them I wanted an exact breakdown of the fee, and I demanded a reduction.

When they realised I had worked in practice and knew how fees were calculated, they soon dropped the fees.

And that is basically how the fees system works

[Kim Standerline]

I pay my accountant about £2k a year, and she does everything (And I mean everything). I just take any receipts etc in a carrier bag or box (blush) for her to sort out. She even does my paypal stuff.

Best 2k I ever spend a year, and I always make sure I pay her before anyone else. (I have to keep her sweet lol)

Kim

[Bev Clement]

Kim at least your not a chippy, can you imagine the smell we would get from their receipts which have sat in a carrier bag for 12 months or more.

[Bev Clement]

Not always, I was being kind there

I can remember one chippy who was being investigated by the dear old Revenue, and they finally appeared with a box of whatever they could find. We had to try and find enough information for 3 years because they hadn't bothered to put in their accounts.

3 years old, stale, smelly, oily, yucky, chippy recipes.

Unlike one client in Swansea who gave us free ice cream each day. Now that was something special, as in 1978 Walls offered them a million for the recipe.

Oops I've just hijacked the thread

[JayXtreme]

@BevClement

That is fantastic information to know up there Bev.. thanks for posting

Peace

Jay

[ExRat]

Hi Bev,

Kim at least your not a chippy

I can't imagine Kim being a carpenter

RE - your post above about fees - so the best way is either to employ someone who's in your inner circle, OR if you have to go outside - never call them for one off jobs and only contact them once a year with ALL the info?

[Kim Standerline]

Had my moments

Originally Posted by ExRat

Hi Bev,



I can't imagine Kim being a carpenter

[Bev Clement]

Originally Posted by ExRat

Hi Bev,

I can't imagine Kim being a carpenter

RE - your post above about fees - so the best way is either to employ someone who's in your inner circle, OR if you have to go outside - never call them for one off jobs and only contact them once a year with ALL the info?

Chippy as in a place to get faggots, peas and chips

Never phone unless you know it is important and will take time. Never have idle chat asking them how they are and making small talk, you will be billed for it. Yes once a year with all the info, and keep your questions for the interview.

What a lot of people forget is that when they get a letter about tax, the accountant also gets a letter.

If you get a tax assesment, the accountant will have had it first and most likely have already sent in an appeal.

If it is a bill, then they already have done the tax computation, and know exactly how much you need to pay.

We would keep ahead on this, and I would dictate letters to the client saying your tax payment is due and it is xxxx and the figure asked is correct, please pay.

Now that would take me 15 mins to check and write and sign a letter.

But if you rang me and asked you would still get the above done and get charged 15 mins for the call.

The majority of accountants are ahead of their clients, and we know the question you are ringing about before you speak.

Obviously if is something unusual then talk to them, but don't expect a free lunch.

I have been paid by clients to watch Wimbledon because they thought it was more important than auditing their books.

[ExRat]

Hi Bev,

Chippy as in a place to get faggots, peas and chips

I can see how long you've been away. Faggots are now called Doner Kebabs and look, and taste, slightly different.

but don't expect a free lunch

Expect to foot the bill for breakfast, lunch, dinner and a nightcap too.

[Steadyon]

The smaller accountants are not as regimented as the larger firms.

"Horses for Courses" I suppose.

If you keep decent records it DEFINITELY helps to reduce fees.

Another great way to keep costs a little lower, is to get to speak to the actual person doing the work and spend some time with them to orientate them on your records and explain what you have done. As well as this do a little write-up of your business, how it works and explain any unusual transactions or difficult items.

This will stop the person wasting hours trying to understand something.

Also build a good relationship with your accountant and his staff. Get them on your side and stress that if there is something they don't understand that they should pick up the phone and ask you straight away.

Do what you can to speed things up and to simplify matters.

The people that complain the most about fees are usual either incompetent with their basic records and dump a pile of crud on their accountants desk, or they have not stressed to their accountants enough that they are very willing to help sort out any complications.

Also, these days, there is more scope to get the final bill discounted if you are helpful and aren't a big problem for the firm.

[artwebster]

If you are capable of keeping all your receipts in one box and all your invoices in another with a list of the contents (preferably with a total value for each box) you may well find, in the UK that the tax office will do a set of accounts for you if you go and ask them (you don't understand these things).

Not only will you get a set of accounts that is automatically approved but you will be sure that every possible tax allowance has been calculated and granted.

You can also ask for a simple payroll system that will be as easy to do as filling in an opt in form.

As an accountant I feel pretty sure that you do not generate enough work to justify this level of charge.

I am paying over £3,000 per year to my accountant (to do my books, simple payroll, company accounts and personal accounts for my IM business) and I have been for years. er - so much for inflation?

[Platinum Matt]

When I say over £3,000, I don't have the figures to hand. I believe sometimes substantially more i.e. £4,000 plus... I just know I haven't ever paid much below 3.

Thanks for replies guys!

[para]

I pay £50 per months and that is to do all my paperwork, like vat returns etc, plus twice a year I pay around £150 for end of year tax

para

[Frank Ayres]

I dont pay anything as my accountant is my wife

[TJ Kazunga]

I am paying over £3,000 per year to my accountant (to do my books, simple payroll, company accounts and personal accounts for my IM business) and I have been for years.

Matt, surely it depends...

I mean, do you like the job they do? Do you trust them? Do they add value to your business? Do you have a good relationship? Personally, I am happy paying slightly more, because I get value.

Why would I try and get someone cheaper to save like £100 per month? Will it be worth it? Why are they cheaper is a question that springs to mind?

If you aren't happy with them then that's another question, BUT, if you are happy then £3,000 per month is a good deal.

My 2 pence...