There’s a simple truth that many businesses know from the start: the services of an accountant are vital. Even if you are still just venturing out as a small business enterprise, you already know that the way you deal with your finances is essential, and you need to keep a close eye on all your transactions so you can have a clearer way to decide where to go and what to do. But hiring an accountant takes a bit of consideration, especially when thinking about their fees. Their fees can vary, and this will depend on your business’ size, the scale of your business activities, and whatever services you may need. But once you know and understand these aspects, you can have an easier estimate of the cost and fees of your accountant. But what fees can you expect from an accountant? Here, your main questions are answered.
- General services
A small business enterprise could be anything from a self-employed entrepreneur or freelancer to a limited firm or business with as many as 50 workers or employees. The accounting tasks for these kinds of businesses will often include services that are delivered as one package, which comes with annual accounting, bookkeeping, tax returns, the annual and monthly payroll returns, the quarterly returns on VAT, and advice in terms of legislation for tax avoidance. It may also include ongoing and regular advice, as confirmed by the experienced accountants central London from Griffin, Stone, Moscrop & Co. All these can come with a fixed fee per month, and if you have a small business, the fee may be only £60 – but if your business is larger, it can be about £250 based on your turnover, the depth of services provided by the accountant, and your location in the UK. If you have more staff and a higher turnover, your accountant may charge a higher fee.
- Tax returns and self-assessment returns
Accountants may also charge a one-time fee for annual self-assessment tax returns, and this can range from about £150 to £250, again depending on the scope and complexity of your finances. In general, if you have a higher income and more income sources, then the fee will be higher. A fee that is about £250 can usually cover standard self-assessment tax returns, while a more complex return (especially for those who are self-employed or have more varied streams of income) will elicit more work and, therefore, higher fees.
Ways through which you can settle fees
There are different ways in which you can settle your accountant’s fees, and many business enterprises prefer paying a fee per month as this can provide more certainty. You may also choose, however, to settle their fees per hour, or you can pay for individual accountancy services as well. You also have another option: mixing and matching, where you pay for certain services with a fixed monthly fee or fixed price and then pay for other bespoke accountancy services per hour. Basic accounting from an accountant may have charges ranging from £25 to £35 per hour, depending on where you are, while more specialized services such as business planning and tax planning can range from £125 to about £150 every hour.
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