How much do accountants charge?
From bookkeeping and filing tax returns to managing payroll and providing the latest financial advice, accountants can be key when it comes to successfully managing money for businesses of all kinds.
But how much do online accounting packages for small businesses cost? Well, there are plenty of factors behind an accountant’s bill, including the size and type of your business as well as the amount of work you require.
Some small businesses may see the cost of hiring an accountant as an unnecessary one, instead preferring to try and work out their finances themselves. However, ultimately the services of an accounting professional can be invaluable. Not only do they have the relevant knowledge and skills to advise on complicated tax laws but plenty of experience in helping small businesses calculate revenue so they maximise profits while keeping their costs low.
What accountants offer
Accountants working with small businesses can offer a range of services. Much of their work is about alleviating the pressures of calculating finances so businesses can focus on doing what they do best: offering brilliant products and services to their customers.
Some of the work accountants undertake includes:
Liaising with HMRC
From filing a tax return to balancing the books, as a small business, an online accountant will liaise directly with HMRC on your behalf once you’ve assigned your accounts to them.
Helping make tax savings
An efficient accountant will help their clients make tax savings, reducing their outgoings by ensuring they claim everything they’re entitled to so nothing is overlooked.
Providing you with financial advice
Whether it’s staying on top of the latest small business responsibilities such as the implications of Brexit or just giving you great business advice, your accountant will be well placed to guide you on the best ways to manage your money whatever might be happening in the wider world or economy.
Who accountants work with
There are different types of small businesses online accountants work with, all of whom have a variety of needs and requirements. The amount of work they need often dictates the size of their bill. Some of these businesses include:
Sole traders
Sole traders run their own businesses and are set up as self-employed. Many either work as freelancers or contractors.
Limited companies/partnerships
Limited companies are ‘limited by shares’ and act as legally separate financial entities from those who run it.
Landlords
The property market and accompanying legislation moves quickly. So if you’re a landlord, then you may have concerns around stamp duty or the Let Property Campaign. Your accountant will support you with this.
Partnerships and LLP
These business entities involve the interests of different individuals and partners and can offer unique accounting challenges.
Start-ups
Accountants can provide essential advice around bookkeeping to help fledgling companies get off the ground.
The services accountants provide
Online accountants offer a huge range of services depending on the needs of your business. In many cases, their expertise can extend beyond accounting to include business strategy and marketing advice. Here are some of the core accounting services they provide:
- Annual accounts
- Corporation tax and tax returns
- Bookkeeping
- Research and Development tax relief information
- Director’s personal tax return
- Monthly and annual payroll returns
- Quarterly VAT returns
- Advice on tax avoidance legislation (IR35)
- Daily support from your accountant
- Payroll
- Pensions
How much an accountant charges a small business varies from organisation to organisation and sector to sector. But there are certain things you can do to keep your expenses low. Doing some of the work yourself and making sure your expenses and invoices are in good order when you present them to an accountant will go a long way in reducing the workload. Adopting an ‘accountant-friendly’ outlook will benefit all parties no matter how big or small your business is.
How accounts and businesses calculate costs
The accounting needs of every business are different (and a good accountant will tailor their services to suit your needs) but on the whole, the larger the amount of income you generate, and the more sources this comes from, then the higher the cost of accounting. This will mean more work to go through invoices, receipts and books.
The ways in which you pay an accountant also varies between businesses. If you run a limited company with a high annual turnover and profit, then it might be in your best interests to spread any annual costs and pay by month. If you just need an annual tax assessment and filing, then you can pay this as a one-off sum. Also remember to class this as an expense when you make your filing the following year.
In theory, an effective accountant will be able to help you save at least some of their fee through identifying tax savings. Not only is it likely you’d never have found these on your own but they save you the time you’d spend looking too.
Finally, you need to remember it always pays to do your research and find someone capable of looking after you and your business properly. Their services need to be a good fit for your business for your accounting relationship to work.
