How to reduce your ongoing accounting fees

How Much Does an Accountant Cost?

The cost of an accountant depends on the work they are doing and whether this is ongoing.

For example, you might employ an accountant on an ongoing basis to help you with regular financial reporting or day-to-day bookkeeping (find out more about bookkeeping costs here). You could ask for their assistance to set up a one-off task, such as transferring pension funds or providing an independent opinion on different financial products.

In the UK the average cost of an accountant ranges from £35-£150 per hour. At the lower end of the spectrum are simple tasks, such as completing the calculations for a tax return. More complex tasks such as managing payroll will cost more (learn more about payroll costs).

If you regularly work with an accountant, you will likely pay them a monthly cost, or a quarterly fee, rather than paying by the hour.

Can I Reduce my Accountancy Costs?

There are lots of ways to reduce your accountancy costs. However, analyse the pros and cons before deciding to undertake any projects yourself, as accountants can provide invaluable support, which is not always reflected in the rate you might be paying.

Added benefits of using an accountant include:

• Professional support to ensure that projects are completed on time, accurately and in compliance with regulations.
• Cost-savings by ensuring all claimable expenses are claimed for.
• Time savings by carrying out functions and filings on your behalf.
• Support with liaising with organisations such as HMRC on your behalf.
• The assurance of having a qualified accountant file for you, which may reduce the likelihood of audits or inspections.

Here are some of the ways to reduce your expenses:

1. Carry out basic accountancy tasks yourself

The less work your accountant has to do, the less it will cost you. Make sure that when you pass information to your accountant, you include as much detail as possible. If you can complete basic bookkeeping yourself, for example collating expenses on a spreadsheet, this will save them time, and you money.

2. Switch to digital processes

One of the lengthiest jobs an accountant needs to do is working through paper records. If you can change any of your functions to be digitalised, this means providing simple reports to work through.

For example, switch outgoing payments to bank transfers rather than handwritten cheque stubs, keep digital records or use a bookkeeping software rather than physical paying in slips, and download soft copy bank statements instead of hard copies received in the post.

3. Keep good records

Particularly if you change accountants, having a clear history of your previous returns or filings will make their job much easier. Keep copies of past returns, filed accounts, statements of account and any other functions that your accountant will be involved with. If they can save the time of having to track down previous documents, this will cost less for you.

What Types of Accountant Cost the Least?

As the modern finance world innovates, you will find many more virtual accountancy practises. This type of accountant is usually much cheaper than an accountancy practise since they offer cost efficiencies in being able to work remotely.

Freelance accountants tend to be self-employed, and also usually work remotely. If you decide to work with a freelance or virtual accountant, be sure to understand what information they need from you, and to verify their accreditations before starting any work.

If you need multiple services or ongoing support, it is advisable to use the same accountant for all of your requirements. This means they already know your background, and can provide cost savings by working on multiple tasks for you.

Traditional practises tend to cost more, but there are advantages. Many practices have multiple accountants with different specialities, meaning you have the benefit of their experience should any queries arise.

If you are looking at reducing accountancy fees, you may also want to look into a financial advisor or wealth manager to understand how you can better manage your finances. Take a look at our financial advisor cost and wealth manager cost pages to find out more.

With accountantcosts, we can provide quotes for all ranges of services. If you want to learn more about the services accountants provide, take a look at our guides which contain ample information for your business needs. We provide payroll service costs, financial advisor costs and help you to find an accountant freelancer near you.