Whats A Reasonable Monthly Accountancy Cost ?

[iguy2008]

Hi

I have been with my current accountant for about 9 months and agreed to a fee of £250 per month +VAT.

This covers the usual services for my partner and I.

My affairs were complicated so also agreed to a one off payment of £3K for advice.

I have now received a letter saying they its a new fiscal year and have reviewed my account now propose a figure of £350 per month +VAT.

I would appreciate any advice on the general view. Im not unhappy with the accountant but a 40% increase at a time when ratesare going down is ringing alarm bells.

Thanks.

[vwdan]

You say it's complicated, so surely it's a bit dependant on just how much work they have to do for you on a day to day basis. I mean, I pay the SJD fee of £110+VAT and I think most contractor centric accountants are around about that figure, but your average manufacturing firm will probably spend the best part of £100k a year on accountancy staff so how long's a piece of string, really.

[Kenny@MyAccountantFriend]

Hard to say without knowing what work is involved.

Seems high if you are a contractor but wouldn't be high if say you was running a business with lots of transactions such as a shop.

[iguy2008]

Hard to say without knowing what work is involved.

Seems high if you are a contractor but wouldn't be high if say you was running a business with lots of transactions such as a shop.

Hi Kenny

I would say its standard stuff: (from the accountants letter)

Preparation of companys annual financial statements.
Handling payroll.
Quarterly VAT returns
Personsal Tax Computations
Ad hoc advice when required.

1 invoice per month for my partner and I.

Thanks iguy

[iguy2008]

Hard to say without knowing what work is involved.

Seems high if you are a contractor but wouldn't be high if say you was running a business with lots of transactions such as a shop.

Hi

Im an IT consultant and my partner is office manager.

The only transactions are 2 invoices a month plus any expenses.

Thanks - Iguy

[Kenny@MyAccountantFriend]

That would seem quite high then and what was the initial £3k to cover?

[iguy2008]

That would seem quite high then and what was the initial £3k to cover?

I worked abroad for a long time so to cover issues around residency and domicle. That work is now complete.

Thanks - Iguy

[Jessica@WhiteFieldTax]

As Kenny says, that seems high. The £80 to £120 /m range is about right, for a consulting/contracting/freelancing type company.

[AnotherGuy]

Seems quite expensive to me.

I'm paying £95+VAT with K&B and honestly most of the stuff I do it myself online with IRIS OpenBooks (FreeAgent).
Invoices, expenses, etc. All done in few minutes and uploading bank statements.

Couldn't justify spending more money unless they go the extra mile, but I don't know how?

[ContrataxLtd]

Hi iguy2008

From what you've said the accountancy fee seems a bit steep to me, I would have expected ball park £75-£100+VAT.

For comparison, I've got a client with 50+ staff paying less than you are per month!

Martin
Contratax Ltd