Need Advice on Accountancy Fees

J

Just Askin'

Registered User
Messages
15
Hi all,

I'm established as a sole trader for over 10 years. My turnover the last 3 years is about €150K +/- €10K for the last 3 years. Just myself and one full time employee.

What would be a valid accountancy charge for filing an annual return?
Some relevant points:
- Not registered for VAT, so no VAT work necessary here.
- I keep impeccable records. Every single expense transaction is organised on a spreadsheet, in relevant categories, and totalled etc. The point I'm making is that the accountant has very little work to do after I give them that.
- No payroll included in this fee.

My account has been putting up the fee each year, and I'm vigilant that at this point, that the fee might be beyond what's reasonable at this stage.

What's an appropriate fee range for filing an annual return for a business like this?

Thanks,
JA
 
You could probably ask current accountant for a fixed price agreement which would bring clarity to the cost for doing the next years accounts. A kind of an execution only service. If you needed advice you'd just pay additional fee.

You could also outline, as you've done above, your needs and send it to another few firms to see if they'd quote you on a FPA. If you're the type of person that needs to phone the accountant a lot, this probably wouldn't work for you though, as time costs.

Gerard

www.prsa.ie
 
GSheehy said:
You could probably ask current accountant for a fixed price agreement which would bring clarity to the cost for doing the next years accounts.
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Fixed price agreements normally drive up costs because they invariably involve the pricing in of an element of contingency which otherwise will only occasionally arise and be charged accordingly when they do.
GSheehy said:
A kind of an execution only service.
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Imagine asking your doctor for an execution only service.

I doubt if any sane accountant would ever consent to such a deal. The risk of a negligence claim or professional standards complaint would be too great.
GSheehy said:
You could also outline, as you've done above, your needs and send it to another few firms to see if they'd quote you on a FPA. If you're the type of person that needs to phone the accountant a lot, this probably wouldn't work for you though, as time costs.
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There's a lot more to factor in than time spent on the phone. The problems and the mounting costs tend to be with the ones who don't phone.
 
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cremeegg said:
Why do you need an accountant ?

What does your accountant do for you ?

Have you looked at what Taxassist charge ?
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Hi,
- To file my tax return, I don't know how to do this
- Very little apart from file my return. I only see him once per year to sign accounts.
- No, I haven't got any quotes from elsewhere yet

Thoughts?

Thanks,
JA
 
GSheehy said:
You could probably ask current accountant for a fixed price agreement which would bring clarity to the cost for doing the next years accounts. A kind of an execution only service. If you needed advice you'd just pay additional fee.

You could also outline, as you've done above, your needs and send it to another few firms to see if they'd quote you on a FPA. If you're the type of person that needs to phone the accountant a lot, this probably wouldn't work for you though, as time costs.

Gerard

www.prsa.ie
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He's currently doing an execution-only service. I probably just ring him once a year to organise to go in and sign the accounts.
 
Just Askin' said:
Any suggestions anyone on what might be a valid fee range for this service?
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Maybe post what your accountant is quoting for next year and those in the know might be able to comment on whether or not it looks reasonable? How much is the increase in percentage and nominal terms? How much are you likely to save by shopping around? Is it worth the bother in the greater scheme of things and in the context of your business, especially if you are presumably otherwise happy with the services provided by your existing accountant to date? You might move elsewhere for a marginally lower fee but then have issues that you don't have with your current accountant thus distracting you further from your core business.

Why not have a chat with your accountant to apprise them of your concerns about the increase in fees?

Of course the other option is to do your own return if you already keep meticulous records and know what to do?
 
ClubMan said:
Maybe post what your accountant is quoting for next year and those in the know might be able to comment on whether or not it looks reasonable? How much is the increase in percentage and nominal terms? How much are you likely to save by shopping around? Is it worth the bother in the greater scheme of things and in the context of your business, especially if you are presumably otherwise happy with the services provided by your existing accountant to date? You might move elsewhere for a marginally lower fee but then have issues that you don't have with your current accountant thus distracting you further from your core business.

Why not have a chat with your accountant to apprise them of your concerns about the increase in fees?

Of course the other option is to do your own return if you already keep meticulous records and know what to do?
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This year was €1,900 + VAT
 
Just Askin' said:
This year was €1,900 + VAT
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Look at last year’s tax return and see if you can replicate it based on your own record-keeping.

If not is you figuring it out worth ≈€2,300 of your time? Proceed on that basis.

Bear in mind you’re currently paying to reduce the risk of a false declaration. Your accountant has specific expertise and does dozens of these a year, you would only do one.
 
Just Askin' said:
He's currently doing an execution-only service
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I get it, you're looking for a remedy not a diagnosis so it's a chemist you need not a doctor :)

If you were doing bank recs and populating an accountant provided spreadsheet with (say) all expenditure I was going to guess €1,500 including VAT.

In fairness, he should know your form at this stage and the quality of your submissions so maybe just raise the increase and see how he justifies it.
 
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