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hmeah
07-10-2007, 04:02 AM
Hi, i really need some advice... i been running a company since 2006 & we have 1 client who we invoice for.. the thing is since starting up.. i have not done any accounts.. i now need this sort...

i have not put anything onto a system & everything is on paper.. all the invoices, expense & receipts.. there are 2 partners in the company & we need to do a self assessment by 31st jan 07..

i have go a quote from an accountant, they will do our books, set up a system for us, do the financial statement and also our tax returns...

they want to charge me 7-8 thousand pounds.. i need to know if this is a reasonable figure...

our turnover for the first year was 150, this year will be about 200....

i know i need to register for vat & am looking into this.. since we provide training to clients.. i think we maybe exempt...

any info or idea on price is really appreciated.

Many thanks

H

durham_candles
07-10-2007, 10:07 AM
for my Ltd. company my accountants fee for the year is 715 + vat, which includes annual accounts, my tax return, PAYE and VAT.

xs
07-10-2007, 10:48 AM
715 + VAT is very reasonable. I'm paying about 800 + VAT for my year end accounts and corporation tax return.

Limeone
07-10-2007, 02:40 PM
is not a reasonable figure and some accountants charge this for 2 reasons:

1. They are a huge name, you are working with one of their partners and so the hourly rate is enormous- an overkill for a modest turnover Ltd company.

2. They do not want your business and instead of telling you they quote a ridiculous fee so you make the decision to go elsewhere.

Try James Smith on this forum, knowledgeable, fair and well priced. Certainly for doing one set of accounts from paper you have a lot of choice in the 800-2000 accountant range.

James Smith
08-10-2007, 09:37 AM
H,

Hmm as per the comments above 8k sounds an awful lot HOWEVER, it sounds as if you have some serious issues that need addressing which will push up the costs somewhat., Ie you say your turnover was 150,000 and yet you are not VAT registered.......this means back dated VAT returns will be required and potential for haggling with HMRC about penalties etc. Moreover if you have never drawn up accounts and you are running through a limited company (? not sure which it is as you mention partnership and company not sure which it is) this will add another layer of complexity when it comes to the extraction of funds you cant declare a dividend if you have never prepared accounts so this too will become an issue as you will presumably have overdrawn directors loan accounts.

These sorts of things do push up the cost up a lot more than a routine returns that are completed in a controlled manner, but not I would have through to this level unless its a pretty big firm as stated above.

One major way you will get the fees down in any case is to do your own bookkeeping which if charged at full accountant rates can by eye wateringly expensive. Most decent accountants will use a bookkeeper to do this element for you if require it, but again do expect them to make a margin on it, ie it is probably cheaper to get it done direct with a bookkeeper yourself or have your accountant recommend one they can use.

Hope that helps

Regards,

hmeah
08-10-2007, 01:36 PM
Thank you very much for all your feedback, esp. James Smith...

I know i have messed up a little by not getting things in order from day 1, but am looking to put things right now.

hmeah
08-10-2007, 01:37 PM
As for the compnay.. we are not limited.. just sole traders... does this make a difference to accountants?

James Smith
08-10-2007, 01:43 PM
Don't worry - i'm sure it can all be put right - I have just completed a set of accounts for a client with a September year end (ie only 8 days ago - its for a mortgage application and needed pronto) for somone who failed to submit their first FOUR years of limited company accounts. This is year six. Quickly simply they have got their act together and do their books every week so they are always up-to date. I find its usually people who don't quite know how to start it that quite understandably keep putting it off and therefore get into a muddle - once they have a bit of direction and know what the deadlines are they tend to be fine with it all.

Regards,

TheJoshM
08-10-2007, 01:45 PM
If you're a Sole Trader or Partnership then you're not a company.

Company accounts will be a lot more expensive than sole trader accounts, so if you've told an accountant you're a company then this will almost definitely have had an affect on the quote given.

You say that "we are sole traders"... do you mean "we are a partnership"?

James Smith
08-10-2007, 01:58 PM
If you are a partnership this really shouldn't be a big deal.

You just therefore (hopefully!) only have the missing VAT to sort out, all the rest is latish to be only starting now, but perfectly possible by the 31st Jan if you are putting things into action this week.

Regards,

Brookman
15-10-2007, 10:48 PM
HI there,

Please give us a call to discuss on 01727 810055.

Our fees are very reasonable.

Kind regards.

monthlylocal
15-10-2007, 11:45 PM
I have a question, sorry to hijack....

A close friend of mine ran a business about 3 years ago. He was in business (sole trader) for around 18 months I think and I would guess he earnt around 30k profit in that time, but maybe as much as 50k.

I know for a fact he used to just pay a sum each month (normally however much profit he had made that month) directly from his business account into his personal. I am 99% certain he never paid any income tax or national insurance in that time.

He is now back in permanent employment and pays NI and income tax as normal. He took all the money from his business account and shut it down. I mentioned this too him the other day and he as good as confirmed he wasnt paying tax or NI when he was in business.

Now I have no intention of telling the authorities as he's a close mate, but how could he have got away with this and it go unnoticed? Surely someone somewhere must see he was not paying any contributions for the years he was in business and ask some questions?

James Smith
16-10-2007, 09:05 AM
One of the basic controls of HMRC is a fishing letter to find out what you where up to between dates if there is a gap. They simply might not have gotten around to him yet or he might get away with it, hard to say.

Given this person is basically stealing from you and I, perhaps you should consider your conscience. If your friend stole 10,000 from an old lady, surely you would call the police? But if they steal 10,000 from the government coffers (i.e. the countries money) this somehow ceases to become a crime? This is the same sort of logic that shoplifters use to justify their theft from large stores.

You friend doesn't need to know the tip off came from you, all they will be doing is paying the taxes the legally owe plus some penalties for trying to be clever. If they volunteered the information even at this late stage then they would only pay interest without any significant penalties.

Regards,