Choosing and Using an Accountant

7. Keeping Fees Down

The service and expertise offered by accountants vary greatly. Fees vary widely, too.

The more you shop around when making your initial choice, the better value you should be able to achieve.

7.1 Be aware of how accountancy firms market themselves and get new business.

It is almost traditional for firms to come up with a competitively low estimate for your first-year fees and then increase their charges steeply in the second year.

• Invite candidate firms to give you prices covering the first two years.
• The accountants win in the end, as it can be unsettling and disruptive to change and you will not want to switch in year three.

7.2 Use your accountant for specialist advice and for help in setting up your accounting and management control systems.

• Systems should be set up in a way that makes preparing accounts quick and easy.

7.3 Do the book-keeping yourself, or hire an inexpensive book-keeper.

• Keep tidy, legible accounts - and make sure they add up correctly.

7.4 Ask for the estimated cost of any piece of work at the outset, in writing.

• Establish whether you will be charged any extra costs, such as travel expenses, and insist on approving these in advance.
• Give clear instructions and agree timescales at the outset.
• Query any fees you feel are unreasonable immediately.

7.5 Consider the alternatives.

• Take advantage of free advice from your local business support organisation (BSO) or Enterprise Agency.
• Get subsidised training from your local BSO or Enterprise Agency on topics like book-keeping and tax.
• Consider using a payroll agency to handle your PAYE and your National Insurance contributions.

7.6 Regularly compare the costs you are paying and the service you are getting with the terms of your original agreement.

• Are you continuing to receive the standard of service you deserve for the fees you are paying?
• Compare notes with other business owners you know.

7.7 Build up a good working relationship. You will be rewarded with better service.

• Before each meeting, let your accountant know in writing what issues you want to discuss.