Any bookkeepers or accountants about who can let me know if this is the going rate?
missjemima · 25/05/2016 13:36
My DP is a sole trader, we run our small family business together though and I end up doing most of the accounts stuff. It's come to the point where we need a professional on board, and I've been really excited to hand it over! (I also work 4 days a week in paid employment) we have two kids, life is busy enough!
We met an accountant and have now had some costs back. They are offering a basic package of £100 a month. This includes cloud accounting software, unlimited phone and email support, year end accounts, tax return, a tax planning meeting and annual business review. Does this sound right?
We're small time TO less than £40K, no payroll and we're seasonal (4 months of the year with no income) so as not to drip feed.
Also, to do a one off tax return for the last financial year £450.
Oh and an additional £200 to train me up on the software and help input all our data into it.
I'm not sure the savings will outweigh the investment - I would desperately love to get help though. Is it worth trawling my contacts for recommendations for other accountants or is this the going rate? I know you get what you pay for, just not sure if this is standard?
Badbadbunny · 25/05/2016 19:33
Considering it's for both the cloud book-keeping software subscription and the accountancy firm's time, I'd say it's maybe slightly over average, but fairly reasonable. Depending on the cloud system, some are over £30 per month, so that just leaves £70 or less for the accountancy which is fair. If you shop around, you'll find some cheaper firms, you'll find some more expensive. The real question is whether you like them, get on with them and whether you think you can work with them - far more important than penny pinching and getting stuck with someone who isn't right for you. Another point, considering pricing is a little over average, make sure that the firm is properly qualified/regulated - the accountancy market isn't legally protected so any Tom, Dick or Harry can set themselves up as an accountant without experience, qualifications nor insurance. Look on their website or letterhead to make sure the word "chartered" appears which means they're members of one of the recognised Chartered accountancy bodies, for peace of mind.
ClashCityRocker · 25/05/2016 19:40
Not unreasonable, but I would be questioning whether you need cloud software for a 40k seasonal business (but I'm not a huge fan of cloud software anyway)
A good accountant is always worth it, but paying more does not neccessarily mean they are superior...you want one that's the best fit for your business.
If you're not vat registered, bear in mind a lot of them quote net of vat so it will be plus 20%.
IceMaiden73 · 26/05/2016 06:15
I think this sounds expensive for a sole trader
I run a firm and we would charge £300 + vat for a sole trader
You don't need the software just use excel
PM me if you want
missjemima · 27/05/2016 11:36
Thanks everyone - I feel like I've opened a can of worms! DP thinks it's too expensive based on our current TO, I've had to turn down their offer based on that. Got quite a snooty reply back - yes, they were chartered accountants. Back to the drawing board, I have a terrible feeling I'll be doing it all again this year
IceMaiden73 · 28/05/2016 08:47
Just try another firm, rates vary considerably, I can recommend www.blackandwhiteaccounting.co.uk
Dudess · 09/06/2016 22:19
As I understand it an Accountant's fees are tax deductable?
bookgirl1982 · 16/06/2016 16:54
Are you VAT registered? Seems a bit high unless it also includes VAT returns. Worth shopping around and if you don't need the software then a smaller outfit may be better.
Badbadbunny · 16/06/2016 19:06
From 2018, current plans from HMRC are for all businesses to submit their accounting data electronically to HMRC every quarter directly from their accounting software, so spreadsheets, hand written books and older style software that's not updated to internet connectivity will no longer be an option. That's why most forward looking accounting practices are working on converting their clients to compatible/on-line systems.
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