total newbie - accounting costs

[Waldorf]

what type of accountancy package do folk recommend? full/mid/minimum?

Accountants who advertise different levels of service are just using marketing techniques to influence you.

They usually go for three levels, most people going for the mid range, which is what they want, very few go for the low cost version and the high cost option is just extra profit for the accountants.

They try and fool newbies into thinking they need the top priced service, often saying that you can move down when you are more confident, I bet hardly any actually do this and this is why so many contractors are getting fleeced by their accountant.

Go for a single priced accountant, the service is often more comprehensive, try Nixon Williams, good price and good service to date.

[Fred Bloggs]

thanks, I think once I'm confident I'm set up correctly for PAYE etc, I'll move to another more cost effective firm.

regards,

That would be sensible, yes. Look at the T&Cs that you signed up to. You may have agreed to a minimum term, or possibly exit fees.

[northernladuk]

That would be sensible, yes. Look at the T&Cs that you signed up to. You may have agreed to a minimum term, or possibly exit fees.

Good point. Although you pay a monthly amount it's likely to be a year's fees with a monthly payment rather than a pay per month option.

[Michael at BI Accountancy]

Good point. Although you pay a monthly amount it's likely to be a year's fees with a monthly payment rather than a pay per month option.

Also worth noting, not only should you check your current T&C's but also check with the accountant you are moving too if they will charge a balance/catch up fee.

If you move halfway through your financial year you will have paid 6 months fee's to one accountant, then have to pay the next 6 months and a balancing fee to the new accountant for them to complete your accounts/tax return etc.

Some do waiver or reduce this fee when switching

[SueEllen]

Also worth noting, not only should you check your current T&C's but also check with the accountant you are moving too if they will charge a balance/catch up fee.

If you move halfway through your financial year you will have paid 6 months fee's to one accountant, then have to pay the next 6 months and a balancing fee to the new accountant for them to complete your accounts/tax return etc.

Some do waiver or reduce this fee when switching

Aren't there always customers you don't want?

[Contreras]

Speak to the accountant and explain you would like to take on more of the admin. For £150/month they should have time to explain basic VAT/PAYE, point you in the right direction, and/or check your returns.

Expect to put in plenty of effort reading guidance notes as well though. Doing it yourself is about being in control and getting a thorough understanding of the business not about saving money (if you value your time).

If there's a hint of trying to lock your business in I would take it elsewhere.