Business

How much should I pay to an accounting firm as a small business owner?

As a small business owner, you have a lot of options when it comes to paying for accounting services in London. You could hire an individual accountant to manage your company’s books, but that would take time away from running your own business, and their expenses would be part of your overhead costs. 

Alternatively, you could outsource the work to an accounting firm in London that offers comprehensive accounting services like monthly bookkeeping and year-end tax preparation.

How much should you pay to an accounting firm in London?

The average salary of a well-qualified accountant, according to Walters, can be around £50,000 per year for a team of salaried accountants.

Accounting fees can either be calculated on an hourly basis or a fixed fee basis. Stonebridge Pay’s operations director, Alex Rawlings, says hourly rates start at around £20.

What’s more important than price when considering an accountant?

Skills and experience, or price? It’s never fun to consider spending more money on something, but you should ask yourself if you’ll be willing to get less for your money. If there’s anything important to your business, it might be worth paying extra for. 

Going with a smaller firm could save you some cash, but will they have all of the skills and experience you need? You don’t want to sacrifice quality just because of their lower rates. When considering an accounting firm in London, make sure you’re asking questions about what kind of work they do and how much experience they have doing it.

The Lowest Priced Accountant Isn’t Always the Best Choice

Many small business owners are under the impression that if they choose an accounting firm in London that charges less than their competitors, they’ll save money. 

While it is true that you may save money initially by going with a cheaper accountant, what most small business owners don’t realize is that when it comes to choosing between multiple accounting firms, price isn’t everything. 

You need to consider other factors such as experience and service quality. Choosing a low-priced accountant might end up costing you more money in the long run because of mistakes made on your tax return or poor service.

Be realistic about what they can do for you

Small businesses are, above all else, time-sensitive. With that said, it’s important to know what your accountants can and cannot do for you before setting up an appointment with them.

When talking to different accounting firms in London it can be tempting to tell them exactly what you want. But keep in mind that they’re here to advise you on what’s best for your business. Be prepared to listen to their advice and talk about any issues or questions you may have with your current accounts. 

If possible, allow some time for a free consultation with an accounting firm in London before any agreement is made so that both parties know exactly what will happen once they sign.