Smart contractors know that a good accounting service is worth its weight in gold. But how much should you actually be paying?
Well – it depends. There are various factors influencing what you’ll pay for the services of contractor accountants, with monthly costs ranging from around £40 for a basic package to £100 for full support.
What affects how much contractor accountants charge?
One of the most important variables in what you’ll pay is what type of business you are. For example, sole traders with a modest annual turnover generally find their accounting fees lower than a limited company with a staff of twelve.
So, just as no two businesses are the same, neither are two accounting packages. Size, structure, the current state of the accounts and annual turnover are all factors which influence your monthly fee.
Don’t worry, though – a good online accountancy service will allow you to build your package to your specifications, so you’re only paying for the services you’ll actually use.
What services can I expect to pay for?
Again, this is up to you. What’s included in your accountancy package will reflect the needs of you and your business.
Services you may look for include:
- Annual accounts
- Expenses tracking app
Listed above are some common requirements but discuss with your accountancy service what your specific needs might be.
For example, if you’re in the process of setting up a limited company, you might choose a set-up service which includes registering your company with Companies House, use of a business address (if you don’t have a premises) and getting you started with PAYE, should you hire employees.
If you’re already an established limited company, you’d benefit from a switching service to ensure a smooth transition from your previous accountant.
If you’re a freelancer or sole trader, you’ll need to make sure your accountant is taking care of your annual self-assessment. Further, a specialist freelancer accountant will ensure you’re keeping track of income from your various clients, meeting tax deadlines, understanding pension contributions as well as operating tax efficiently by writing off all expenses you’re legally entitled to.
How do contractor accountant fees work?
A good accountant should offer both one-off solutions and tailored packages.
Some contractors choose to do their own monthly accounting and just need a little help with their annual tax return. In this case, an ad hoc solution might be what’s needed.
Others would rather outsource the lot – giving them the time and energy to focus on the job at hand. This is the best option for busy sole traders, contractors, self-employed individuals and small business owners who want their accounting taken care of, as well as help and advice from a dedicated account manager as their business grows.
The advantage of fixed fee billing is that you are entitled to ongoing support from a dedicated expert accountant all year round.
How much does it cost?
The best way to find out how much you’ll pay is by getting an instant online quote.
Be realistic about the support you need, and remember the cheapest possible option isn’t always the smartest. Low-balling on your accounting support means you might not get the assistance you need – costing you more in the long run!
Beware hidden costs!
Some online accounting companies can hit you with hidden fees, and sneak in additional costs past the agreed monthly fixed fee. For example, out-of-hours support might not be covered by the price you’re quoted.
When you sign up, make sure the company is transparent, upfront, and honest – and the price you see is the final one.
If you have any questions about QAccounting or the services we offer, please get in touch with our team.
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