Oct 272011
Sometimes, it easy to get pulled in by cheap fees, particularly if the headline figure is very low.
Make sure you are comparing “like with like.” If you are a limited company, with sizeable transaction numbers, then obviously, your fees will not be as low as a sole-trader who raises one or two invoices a month.- What looks like a low monthly fee, can actually still be a sizeable annual fee, when multiplied by 12.
- Make sure you adhere to all the conditions in order to achieve the cheapest fees (eg, use the required software, keep your bookkeeping up to date, do your own bank reconciliations, adhere to the deadlines).
- Expect additional fees for bookkeeping (and provide the information within the given timescales).
- Expect additional fees if your business or personal affairs are more complex. Be prepared to do without the face-to-face contact
- Check for professional qualifications. Anyone can call themselves an accountant, even the man down the pub. Every accountant has heard of horror stories of accountants disappearing into the sunset (sometimes taking a clients records with them). Generally, a qualified accountant can bring some extra reassurance (by way of - additional knowledge and experience, mandatory professional standards, mandatory complaints procedure – ultimately to a professional body, PII)
A Note about Fixed Fees
It’s now very common to see accountants (& bookkeepers) offering fixed fees, as opposed to hourly rates. Indeed, Figurate Ltd offers fixed fees too, as clients like to have the reassurance that the final bill will be the exact figure they’ve told. Fixed fees do eliminate the “surprise invoice”. However, quoting fixed fees often involves making a best estimate of the work and there’s normally a small allowance in case the work is more complex or takes longer than expected. But sometimes, hourly rates can work out a little cheaper than a fixed fee.
