True Cost of Accountant for Small Business
The monthly accounting fees for small businesses can start from as low as £50. However, the average cost of an accountant for a small business in the UK can vary widely depending on what’s included in your package. Typically, the average cost of accountant for small business can vary between £100 and £150.
- Basic bookkeeping and tax returns: £50–£150 per month
- Full-service accounting (including VAT, payroll, year-end filings): £200–£500 per month
- Comprehensive advisory or larger firms: £500–£1,000+ per month
On average, accounting fees for small businesses in the UK range from £50 to £150 per month, but that often covers only basic bookkeeping or tax returns.
Hidden Accounting Fees for Small Businesses in the UK
There are several layers to the costs incurred by a small business on its accounting functions. Some of these cost factors tend to be overlooked by business owners while budgeting or making plans. In this section, we list some of the items which may not be included in the standard accounting package for small businesses in the UK.
- Software and Platform Fees
Some providers may bill cloud accounting platforms (like Xero, QuickBooks, etc.) separately. - Year-end Adjustments & Filings
Year-end accounts and tax return submissions often fall outside monthly bookkeeping packages. - Per-hour consultations
Some accountants charge extra for phone calls, strategic advice, or meetings outside the agreed scope. - Correction of historical errors
Fixing past discrepancies may lead to additional billable hours. - Payroll and VAT returns
Many small businesses assume payroll or VAT filings are included. Often, they’re not. - Business growth costs
As your turnover or number of transactions increases, so do your accounting fees – something many small businesses don’t anticipate.
Avoiding Hidden Accounting Fees for Small Businesses
Hidden charges in accountant services for small businesses can adversely impact their profitability and sustainability in the long run. Clear pricing models are essential to maintaining trust and for precise financial planning.
When comparing accountant services for small business prices, always ask for a full breakdown of what’s included. Follow the actionable tips given below to ensure you avoid hidden accounting fees for small businesses.
- Detailed Service Agreements
Always ask for a detailed service agreement which mentions all the inclusions in your accounting package, with the time period of service specified clearly. Also, make sure the exclusions are explicitly mentioned. - Fixed and Variable Pricing
Many service providers offer a fixed fee as well as variable options. When selecting the service model suited to your business, ensure that you know what is included in the packages. While a fixed fee model helps you budget more precisely, variable models account for unexpected requirements. - Latest Technology and Tools
Select a service partner who leverages technology to the full extent. Automation leads to reduced man-hours and, consequently, less accounting costs. - Periodic Plan Review
Review your plan at regular intervals. - Transparent Service Provider
Opt for a transparent service provider to ensure there is transparency in the process throughout. This will help you avoid hidden accounting costs and increase profit margins.
What Fair & Transparent Pricing Looks Like
A fair and transparent pricing model generally has the following features:
- All basic accounting tasks are included and mentioned clearly
- Activities are explicitly mentioned (like VAT, payroll, year-end, etc.)
- Add–ons are clearly listed
- Optional services like advisory are listed and priced separately
On top of this, the line of communication is always clear and open between the business and the service provider so that any grievances can be addressed on time.
