How much does a limited company accountant cost?
Being a director of a limited company has additional obligations, such as meeting deadlines for reporting paperwork and accounts with Companies House and HMRC. Failure to do so may result in you receiving a penalty.
Finding time to remain on top of this while also working might be difficult. That’s why the majority of contractors choose to work with a seasoned contractor accountant.
Keeping track of all of these responsibilities can be difficult, which is where a limited company accountant can help.
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We’ll take a look at:
- How much should you expect to pay for restricted accounting software?
- Services that are included in the fee
- Frequently Asked Questions about Choosing an Accounting Firm for a Limited Liability Company
Cost of a limited company accountant
Accounting rates for a new limited company might vary significantly based on the services you use, the size of your business, and the scope of your operations.
Limited company accountants normally charge a monthly fee, which will vary depending on the services provided, but will most likely fall between £65 and £200. There are accounting providers who charge an ad-hoc cost or on a service-by-service basis in addition to a monthly fee structure.
Cost should be considered when hiring an accountant, but it should not be the decisive factor (also see how much do accountants charge per hour UK).
What does the monthly fee cover?
When selecting an accounting package, make sure it includes the key services necessary to ensure your limited business is meeting its legal duties. The following are examples of core services:
- Keeping track of your company’s annual financial statements
- Payroll processing for you and any other employees
- submitting VAT returns on a quarterly basis (if you are VAT registered)
- Taking care of any correspondence received from Companies House
You may be charged for additional services such as:
- Organizing the formation of your limited liability company
- Providing a registered office address – this is the address to which all communications will be sent.
- Personal tax return preparation and submission (Self-Assessment)
- Submitting the Confirmation Statement of your company to Companies House
- Expenses incurred as a result of hiring additional personnel (e.g. payroll)
- Employee tax returns to be completed
- Providing letters of recommendation for mortgage applications
Conducting IR35 assessments is one area where it is critical to ensure that the accountant has prior experience. To evaluate your IR35 status, an IR35 study will examine the specifics of your contract as well as your working practises.
If you embark on a contract without first conducting an IR35 review and HMRC determines that you are operating under IR35, you will be taxed as an employee at source.
How do I choose the best accounting firm for my small business?
Pose the appropriate inquiries.
Interviewing potential accounting providers is a crucial step in determining whether or not they are a suitable fit for your business.
Here are a few questions to consider when making your decision:
- Could you tell me what you think about a particular tax deduction?
- Could you comment on my present accounting system and procedures?
- What specific actions would you take to get me ready for tax season?
- What steps would you take to help me increase my profits?
- Have you dealt with companies in my field? Are you familiar with the issues that my industry faces?
- Will I be allocated a dedicated accountant or will I be working with numerous accountants?
- How are you going to make sure I don’t miss a deadline?
- How do you deal with bad customer service or complaints? Could you tell us about a difficult client situation that you assisted in resolving?
- What kind of accessibility can I expect from my accountant? How frequently will we discuss tax issues?
Further Reading: Cost for accountant to do self assessment tax return?
Look for any hidden fees of a limited company accountant
Are there any hidden fees or other expenditures that you aren’t aware of?
Certain providers, for example, may charge costs for completing your self-assessment or VAT return, or an additional price if you cancel your plan before the minimum term expires. As a result, it’s critical that you get answers to any queries you might have before purchasing an accounting programme.
Do your homework
Make a thorough search for reviews across various review platforms and social media outlets.
Aside from online reviews, talk to other business owners in your field to find out what they think about the potential suppliers you’re considering.
The limited company accountant customer service is more important than price
When evaluating potential accounting providers, keep in mind that price is only one criterion to consider. Given that the prices paid by prominent suppliers rarely differ significantly, other factors, such as customer service, become more important.
There are various ways you can use to determine whether or not an accounting firm provides dependable customer service. Check if the support team can be reached via a variety of ways, including online forms, email, phone, and social media channels, by reading online evaluations on various review platforms.
Send them a few questions to see how attentive their customer support team is, and avoid providers who don’t make their contact information obvious on their website.