Help regarding accountancy fees

Ariel1982

Savvy_Sue wrote: »

It may be worth pointing out that saving money isn't just about saving money. It's also about value for money: the OP might be able to find a cheaper accountancy service, but this one might be better VFM in the long run. Equally, since the issue of the freelancers works as it is, and the OP has satisfied herself it's not disguised employment, and changing the t&c now could lead to losing these people and problems finding replacements, I'm another with paddy on this one.

The OP could consider alternatives for any 'new' freelancers needed, but if it ain't broke, don't fix it.

Please also remember to be nice to all moneysavers.

Thank you SavvySue, I completely agree.

antrobus

Ariel1982 wrote: »

....So, the additional fees each year for operating as a company are £1,650, .....

£1,650 extra for a limited company?!?

How shall I put it? Your current accountants are clearly offering the accountancy equivalent of Tesco's Finest. It would not be difficult to find alternative accountants willing to supply the same service for half that cost. Or perhaps even less.

Ariel1982

Thanks Antrobus - I thought it seemed on the steep side and that's with my very limited knowledge of this sector. Shall do a little shopping around over the weekend.

Laurajo_2

I would point out that cheaper doesn't always mean better (that said, conversely paying more doesn't result in better either).

I am sure you could get it for cheaper, just make sure you ask any prospective new accountants lots of questions and make sure you know exactly what's included in the price. Make sure they have dealt with clients in similar circumstances to you.

The £1,650 also includes vat and PAYE returns....presumably you would be registering for vat if you were continuing as a sole trader so there would be an added expense there regardless. To compare your current fee of £450 or so to the proposed fee is unrealistic, although it does seem like a big jump.

Also, you do have bargaining power, if you are otherwise happy with your current accountant. It might be worth asking if there is anything you can do to reduce costs...or get a proposition from a few other firms, and if they are charging significantly more, point this out to them.

With you saying the business is growing faster than expected, and (I'm assuming here) perhaps caught you unawares, it might be best to go for an 'all bells and whistles' option for at least the first couple of years - you could maybe take on responsibility for VAT returns and doing your own dividend paperwork etc when you feel more comfortable?

paddyrg

Remember, all accountants are not equal. The first years year end for one of my companies was with a cheaper accountant, took them 7 months and it was a very simple year. Moved that account to my regular accountant, paid a bit more for a far better service and advice, and did a discount on doing 2 companies for me. As you're expanding quickly you have the money to afford a good accountant and yours sounds like they offer a good service. For the sake of a few hundred quid, it's not worth the stress you can line up for yourself. Stop thinking like a small trader and realise you're doing decent business so can afford good help. It means you can focus on making money instead of chasing accounts through!

Ariel1982

Thank you - it is a big leap for me at the moment, and a decision has to be made with regards to taking the business to that 'next level'

AbbieCadabra

we use an online accounting service. this is our 2nd year with them after we changed from a local one who we'd used for nearly 20 years. their service was getting poor & fee's higher (around £1800 per year for annual accounts & 2 personal tax returns. i did, the vat, wages, annual return, book-keeping - & still do, all on excel/spreadsheet records).

no connection with this company, just a happy customer - cheap accounting

Ariel1982

Thank you Abbie - I'm going to look at this today. Can you tell me any more about your experience with them? The process outlined by my accountant seems pretty complicated - setting me up as a director, paying share dividends etc - can this company do all that for me?

As stated, my accounts as they are are pretty basic (even for me). I have no employees and very few expenses - it's just dealing with income, so maybe something like this could work for me. I do appreciate the previous advice to stop thinking like a small trader though - maybe I need to change my mindset.

Thanks this is a very helpful recommendation. Interested to see if anyone else has used them also.

paddyrg

Ariel1982 wrote: »

The process outlined by my accountant seems pretty complicated - setting me up as a director, paying share dividends etc - can this company do all that for me?

This is absolutely core bread-and-butter work for any accountant. It's not that complicated, just worth getting right to prevent problems down the line like other posters in this forum have hit.

Mistral001

This is amazing. The Op is a business and they have published a lengthy detail quotation from another business almost in entirety on a website.

How can the OP expect to a to get a quotation from any business if they treat their prospective business suppliers like this?