Am I paying too much for my accountant?

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LadyJane

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I had a trawl through the posts and didn't see anything that answered my query specifically - it seems like "how long is a piece of string" however..

I am a sole trader - a consultant, with no overheads to speak of, no staff. I bill 40-55k a year. I submit my accounts to my accountant in spreadsheets for purchases , sales, expenses, and submit my bank statements for the year. I create about 20-30 invoices per year. I am not registered for VAT so no VAT returns are required.

My accountant is charging me around 1000 euro per anumn to prepare and file my income tax and to prepare year end accounts.

Am I paying too much? I want to shop around, as I wonder if I am helping to pay for the fancy office and deep carpet. I think my accounts are pretty straight forward although I really don't want to do them myself.
 
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LadyJane said:
My accountant is charging me around 1000 euro per anumn to prepare and file my income tax and to prepare year end accounts.
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Does this include VAT? Either way, it doesn't seem particularly high, especially if you're getting a decent service for it.
 
Yes this includes VAT. I guess I am getting a good service but I would not have anything to compare it to. Not particularly friendly, but I have enough friends. What I need is a good value, good accountant.
 
LadyJane said:
I bill 40-55k a year. I submit my accounts to my accountant in spreadsheets for purchases , sales, expenses, and submit my bank statements for the year. I create about 20-30 invoices per year. I am not registered for VAT so no VAT returns are required.quote]

You must register for VAT as your income is above the €37,500 threshold for the Supply of Services.

Speak to your accountant (or another one) right away to ensure you are compliant.
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LadyJane said:
I had a trawl through the posts and didn't see anything that answered my query specifically - it seems like "how long is a piece of string" however..

I am a sole trader - a consultant, with no overheads to speak of, no staff. I bill 40-55k a year. I submit my accounts to my accountant in spreadsheets for purchases , sales, expenses, and submit my bank statements for the year. I create about 20-30 invoices per year. I am not registered for VAT so no VAT returns are required.

My accountant is charging me around 1000 euro per anumn to prepare and file my income tax and to prepare year end accounts.

Am I paying too much? I want to shop around, as I wonder if I am helping to pay for the fancy office and deep carpet. I think my accounts are pretty straight forward although I really don't want to do them myself.
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It would be a ok fee if you are happy with service he/she is providing. It is hard to comment unless you see a person's records, it is a lot easier to estimate.

Are you happy with the present service. You could get it done cheaper but the standard could be lower. You better have an accountant you get on with, who is approachable, contactable,

If i was self employed i would be looking for an accountant who for example would do my tax return around February 2009 to cover 2008 tax year, as accounts done early, you know your tax bill and can budget for it before filing on 31/10/09.
 
LadyJane said:
Is that 37,500 threshold net or gross?
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Net - Assuming you do not charge or reclaim VAT at the moment, you are obliged to register for VAT and start charging it to customers once you know that your annual turnover will be over €37,500. (Assuming there is no reason for you to be exempt from VAT?)

You will then be able to reclaim VAT on purchases so you should put off major purchases until after you register. You will have to start making VAT Returns to Revenue.

Also, as it is not clear if you are already over the threshold, you might want to consider if registering for VAT will place you at a disadvantage with competitors. If neither your customers nor your competitors are registered for VAT, you may find it difficult to get work when you register and charge VAT.
 
Thanks for the information regarding vat, QED. I will raise this issue with my accountant. I don't have vat exemption status so I probably should register for it this year. I don't think it should effect my clients as they are all larger companies who would be au fait with charging and claiming vat.
 
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