Accounting service vs own accountant

[Hotlatte]

Hi there,

I have been contracting via my limited co for over 3 years with my own independent accountant. He does my year end, my pay roll PAYE as an employee and dividends pay puts etc.

I have recently spoken to a friend who also runs his own limited co but has appointed an accounting service company that does all the above for him for a monthly charge however, his take home sounded great.

In your experience how would you compare the two i.e. Accountant vs accounting service companies. Also not forgetting the ir35 element.

Please, share your thoughts.

[Hotlatte]

sorry the title of the thread should read as "own accountant"

The title should read "Accounting service vs own accountant".

[yorkshireman]

Hi there,

I have been contracting via my limited co for over 3 years with my own independent accountant. He does my year end, my pay roll PAYE as an employee and dividends pay puts etc.

I have recently spoken to a friend who also runs his own limited co but has appointed an accounting service company that does all the above for him for a monthly charge however, his take home sounded great.

In your experience how would you compare the two i.e. Accountant vs accounting service companies. Also not forgetting the ir35 element.

Please, share your thoughts.

Happy New Year Hotlatte.

If am not really sure what you mean by "Accounting Service Company". Fundamentaly it is the fact that you are employed by your own limited company that determines your tax (and take home) - Not whether your accountant calls themselves an Accounting Service Company or not.

Specialist online accountants who provide an accounting service to IT contractors for a fixed monthly fee should in theory provide the same quality advice as a high street accountant. The only difference being that all communication is done online or phone instead of face to face.

In practice not all accountants provide provide as good a service (whether they are high street or online) - So you need to do your own research. Make sure that if you are quoted a fixed price that it includes all the services you are likely to need. E.g. some charge extra for personal tax returns and/or IR35 Contract Reviews etc.

I am with Intouch Accounting who provide a really good all-in service for £75 per month. They are also members of the Institute of Chartered Accountants so if I ever have a need to complain I know where to go!

[Hotlatte]

Happy New Year Hotlatte.

If am not really sure what you mean by "Accounting Service Company". Fundamentaly it is the fact that you are employed by your own limited company that determines your tax (and take home) - Not whether your accountant calls themselves an Accounting Service Company or not.

Specialist online accountants who provide an accounting service to IT contractors for a fixed monthly fee should in theory provide the same quality advice as a high street accountant. The only difference being that all communication is done online or phone instead of face to face.

In practice not all accountants provide provide as good a service (whether they are high street or online) - So you need to do your own research. Make sure that if you are quoted a fixed price that it includes all the services you are likely to need. E.g. some charge extra for personal tax returns and/or IR35 Contract Reviews etc.

I am with Intouch Accounting who provide a really good all-in service for £75 per month. They are also members of the Institute of Chartered Accountants so if I ever have a need to complain I know where to go!

my accountant as you have said "high street" does not review contracts in relation to ir35 which i think is one of his downfalls. But i found it difficult when i was in a process of appointing one as 90% of those i met had no idea how IT contracting worked and what ir35 was.

i pay mine £650 plus vat.

[yorkshireman]

my accountant as you have said "high street" does not review contracts in relation to ir35 which i think is one of his downfalls. But i found it difficult when i was in a process of appointing one as 90% of those i met had no idea how IT contracting worked and what ir35 was.

i pay mine £650 plus vat.

If you mean you pay £650 a month then I suggest you contact Craig at Intouch ASAP!

[NotAllThere]

The title should read "Accounting service vs own accountant".

Fixed that for you.

[Hotlatte]

That's the cost for whole year not for a month.

[BolshieBastard]

Hi there,

I have been contracting via my limited co for over 3 years with my own independent accountant. He does my year end, my pay roll PAYE as an employee and dividends pay puts etc.

I have recently spoken to a friend who also runs his own limited co but has appointed an accounting service company that does all the above for him for a monthly charge however, his take home sounded great.

In your experience how would you compare the two i.e. Accountant vs accounting service companies. Also not forgetting the ir35 element.

Please, share your thoughts.

Not a chance. I've an excellent relationship with my accountant, built up over 10 years and 3 different companies.

OK, I pay a little more for that but so what? I really dont understand why people want to save a few quid on something important as accountancy services.

Yes, if you've a crap one change by all means.

[SueEllen]

Hotlatte the reason his take home sounds great is probably because he doesn't do exactly the same contracts and is in exactly the same situation as you. Remember some contractors employ relatives in their business meaning their household/family utilizes more than one personal tax allowance, while others don't.

If you are happy with you got already why change?

[roseyw]

Personally I would use an accounting service. It really depends on which you would prefer in my experience. I had a problem finding an accountant that I was happy with, I did not find what I was looking for so used an accounting service instead. I used Wallace APC. Been with them for over a year now, and I have been much more happier than what I had been with my own accountant. In total I've had 4 accountants within the year. Maybe one of them was of acceptable standard, however, she didn't enjoy being at the company, maybe that was my fault, but I expect hard work from all my employees so I do grill them a lot. So back to your questions, I prefer having an accounting service, as I could find the suitable candidate for what I needed, but there a lot of variables that you could take into account.