What is the accountant cost for a small business in the UK?
Product News / 02.03.2021
Whether you’re about to start your new business or you’ve already got your own business up and running, one of the expenses that you’ll need to cater for is the cost of an accountant.
Accountants are your personal link to Her Majesty’s Revenue & Customs (HMRC) and other tax-related institutions, which perform a vital role for your business.
To ensure you submit your taxes and VAT returns accurately and on time, you’ll need to employ the services of an accountant or an accounting firm.
They are essential elements in ensuring you comply with your financial legal obligations such as payroll, taxes, VAT, etc.
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How much does an accountant cost for a small business?
Ultimately, this question will depend on the size and scope of your business.
By size, we’re talking about the number of employees, and in terms of scope, we’re talking about your annual turnover.
Your accountant will be best placed to help you out with your books by examining them, filling them in, and submitting them to the relevant authorities.
Why hiring an accountant is crucial for your business
When it comes to costs, and depending on the services that your accountant will perform for you, you can expect to pay a set annual fee which is paid monthly.
While some accountants charge by the hour, most charge for the service they provide you on an annual basis.
In addition, their offering can entail a bundle of services included in the final price.
In many cases, the cost of an accountant can range from 50 GBP to 150 GBP or more per month.
And this is a cost you need to factor into your monthly expenses.
Luckily, your accountant can also help you set up a direct debit order so that this monthly fee is automatically deducted from your account, making it one less hassle you need to worry about each month.
When hiring an accountant it’s also important to see if they have professional liability insurance.
This helps in the event of any errors being made by them.
Some questions you need to ask before signing up for accounting services
- What is included in the full service price?
- Do you have professional liability insurance?
- Do you have experience in preparing payroll?
- Will you be my appointed agent with HMRC?
- Do you work with a specific online bookkeeping package? How much does it cost? And is it simple for me to use?
- How much will I be able to save per year?
- Are there automatic reminders to help me stay on top of tax and VAT related annual deadlines?
Once you’ve covered these questions, you’ll be ready to hire an accountant for your business.
The answers to these questions will ultimately be the deciding factors for the monthly costs you’ll be expected to cover for your accounting services.
Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.