Using Accountancy firm v Employing Administrator

Hi there,

I've just received a quotation for the following services
· Preparation of Financial Statements
· Abridged Accounts & B1 Return
· Submissions to the Companies Registration Office & Inspector of Taxes.
· Directors Tax Returns for 2008


Price €2,500 Exclusive of Vat @ 21%.

I have only recently started trading, for the next year I shall have a substantial number of questions about tax/payroll/bookkeeping that I would like to have access to ask and to get up to speed with myself.

From the accounting firm' company partner it seems like this is going to be extra however it's not specified e.g. X amount per hour. I feel uncomfortable with this as I'd feel limited for basic questions and have to waste time looking them up and interprating them whereas it would be much quicker to learn by one to one with that expert.

My question is, would it be better to employ a part time administrator who has lots of experience in at least some of these areas and would work in a more colloborative manner rather than looking for these types of services from an accountancy firm who aren't showing a great deal of interest.

I know accountant is still necessary for audited accounts.

Cousin Borat, I'd say that fee is a little on the high side for the amount of work involved (especially in year 1) - but it is there or there abouts - it would be hard to get anything for much cheaper.you could ask him to quote a fixed fee including phone calls - meetings etc...so you know your not paying for each phone call.

Best of luck, if you need some fairly general stuff answered on a friendly basis u can contact me - it's the least I can do!

A fixed fee should on average cost you a lot more than an open fee quote, as the service provider will have to add a significant contingency to the bill in order to ensure that they are covered even if you make extensive use of their services for phone calls, queries etc. Its a bit like the difference between a bank offering variable & fixed interest rates. The fixed rate is almost always dearer as it involves greater risk for the bank.

I cannot see how it could be economic for you to employ an experienced part time administrator. You won't find too many people at consultant level who are happy to work for minimum wage or even the average industrial wage. €2,500 or even €3,500 to an accountant still works out at only €50-€70 per week.