Find Out The True Cost Of An Accountant
I get it - we all tend to switch off when numbers are discussed.
And we’re even more put off by talk about what we earn, what we spend and so on.
Unless you’re discussing your lottery wins or hefty inheritance, then chatting about money can be... awkward.
We tend to keep our personal finances to ourselves.
And that’s okay!
But should you treat talks about your company’s finances with the same awkwardness?
Your company needs a healthy financial department.
And what’s the key element in any healthy relationship?
No matter the age or success of your company, you should seriously consider taking on board an accountant.
These professional individuals can keep on track of all your financial ventures and keep everything running smoothly.
You should ensure that the accountant is more than equipped to deal with your personal financial circumstances.
That means you have to actually tell them about your circumstances.
After all, you don’t want to keep your debt problem hush-hush and then find out your accountant has no experience in this area!
If you stop paying attention to the company finances (or simply ignore them out of embarrassment ) then it could have dire consequences.
Take our client, Mya, for example.
As her profit margins were small when she started her business, she thought she could get away with doing the accounts herself.
(She wanted to cut corners and save herself some money.)
But this backfired majorly…
Instead of saving money, she ended up spending a fortune on quick-fix banking solutions.
You don’t even want to know how much money she spent ordering ‘finance for dummies’ books off of Amazon.
(Yeah, those £13 books really add up when you buy 1000 of them.)
She tried to do everything herself, with little knowledge on the subject.
Which led to so many mistakes.
Within months of being set up, her company was near collapse.
She was desperate for help.
So, she took our advice and hired an accountant.
Within weeks, the company was back on track and business was finally booming.
In fact, her profits near doubled.
All thanks to her accountant.
So why not hire someone whose sole job is to look after your finances?
Hiring an accountant is so worth it.
Budgeting, bookkeeping, taxes etc.
There’s no way you can take care of all this (and more) by yourself.
So keep reading…
I’ll help you find the best accountant for you!
Most up-and-coming businesses fail due to lack of financial management.
Do you really want your company to be represented in that statistic?
I doubt it.
But, I get it.
It’s really hard keeping your head above water , especially in the beginning.
When you’re just starting out, you’ll probably find yourself taking on many different roles at once.
Accounting being one of them.
But accounting isn’t just something you can quickly Google and become an expert at.
(Sorry wikiHow, we don’t need you.)
It takes years of schooling - about 5 to be exact - and seriously hard work to become an accountant.
That’s because they do actually do a lot more than make a few quick calculations.
They also need to be able to keep up with current laws and regulations - and hyperaware of any new ones.
Plus, they need to be well aware of any advances in accounting technology too.
They need to be on the ball 24/7.
With a qualified accountant by your side, you can trust you’re leaving your company’s finances in the right hands.
Hiring a professional to take care of your money will help you to make the smartest decisions with it - which will benefit your company profusely.
An accountant is one of the most important people you’ll find in your office.
They monitor all the financial decisions you and your company make.
They see all the money going in and out and make sure it’s all legally sound and above board.
An accountant could be brought in to do a few different jobs to help you get back on track, other accountants could be more permanent.
But we’ll touch on more of that later.
The question you need to ask yourself now is;
The only person who can really answer whether or not you need an accountant is you.
But I strongly advise that all business owners should invest in one.
They may just be the line that stands between your company thriving or tanking.
The day to day life of an accountant is hectic and heavily reliant on their ability to not want to curl into a ball and cry.
(I’m not joking - I’d cry constantly if I had to spend the majority of my day budgeting.)
Well, these people can do just that.
In fact, they enjoy it.
The accounting, not the crying - duh.
Unlike you, they actually know what they’re doing too.
Your accountant is responsible for a lot of things, let’s cover a few;
If your country’s financial regulatory body requests one from you, you’ll be required to hire a chartered accountant to look over all of your company’s accounts.
They’ll be keeping an eye out for any mistakes (intentional or not) and make sure everything is accounted for and makes sense.
If any part of your accounts is missing or incorrect , it can have extreme consequences for you and your company.
(Think large fines and the dissolution of your company.)
Are you 100% certain in your own abilities that you know for sure you won’t mess this up if you do it yourself?
Then maybe it’s time to consider an accountant.
Okay, this one is a little more self-explanatory.
You don’t need to be a financial genius to understand how important it is to budget
Look at Toys R Us for example.
It ceased trading in 2018 after racking up £15,000,000 in unpaid taxes. Failure to efficiently budget their profits meant they had no hope in paying that money back.
But this doesn’t have to be you.
With a good accountant on your side, money will be one less thing you have to worry about.
And honestly, getting help is a big relief.
After all, we all stress about making it to payday.
(Okay, maybe not big movie stars or corporate bigwigs.)
But most of us stress about it, right?
Budgeting your personal finances is the best way to organise your money.
And it’s the same for your company.
Put your budgeting worries in your accountant’s very capable hands and watch the money roll in.
A financial statement is a document that displays
the financial activities of your company.
An accountant is responsible for putting these statements together!
(And presenting them in a way that makes it easy to understand for the less financially savvy individuals among us.)
They’ll review all the profit and losses your company had in a particular time-scale.
They’ll then also create a financial position sheet in which they’ll lay out all of the company's assets in one report.
An equity statement and cash flow statement are also created by the accountant to display any changes in, you guessed it, equity and all cash flow related activities.
Is all this financial jargon losing you?
Don’t worry, your accountant can have an in-depth chat with you about how each statement affects your business!
And So Much More...
number of jobs accountants have to do
business above water is endless.
Jobs that would otherwise be rushed, ignored or done at a sub-par level.
Like tax returns, financial documentation and assurance services.
Cutting corners to get things like this done yourself can (and will) lead to failure.
It sounds harsh, but it’s true.
So cut out the stress of trying to learn how to do these tasks yourself, and hire an accountant today!
Read More: The Very Best Accounting Firms In The UK
So, by now, I’ve hopefully got you to consider hiring an accountant.
If you are considering one...
If you’re still unsure, I bet I can guess why.
Unfortunately, it’s a difficult subject to discuss, as there is no set cost of an accountant.
It ultimately depends on what you want, when you want it and how in-depth you need it to be.
But, I can promise you now, they’re really not as expensive as you think.
And they’re a lot cheaper than the fines your government will charge you if you make a teeny-tiny mistake.
Plus, modern financial development has really driven the cost of traditional accountants down.
(You can thank the internet for that.)
Luckily for you, that means you can buy accounting services miles cheaper than you could 10 years ago.
After all, accountants are looking to sell themselves (and their services) to you.
They want to provide the most competitive price possible, without compromising their profit margins.
Accountants, more often than not, set up their own rates and work accordingly.
So you could find an accountant who’s happy to work for ||$||60||$|| a day - or you could find one who will only work for ||$||60||$|| an hour.
And their skill set could be exactly the same or vastly different.
It’s all about finding the right fit for you.
Prices can actually vary greatly due to elements such as the size and location of your company.
In fact, depending on the size of your business, some accountants may even charge you a package price.
These packages usually begin at around ||$||132||$|| , but can go into the thousands.
So be thorough in your research.
For once, you can afford to be picky.
You get the luxury of choice here, so utilise it to better yourself and your company.
Again, there’s no set price surrounding the cost of an accountant.
To give you a little idea of the price you could be paying, here’s how 3 great accountancy firms compare against each other:
Read More: Why Management Accountants Are Essential
Stop that extensive Google search and listen to me for a minute.
You don’t need to compare 300 different websites to find a cheap (but good) accountant for your company.
Not when I’m here to help!
I have all the best tips to get even the top tier accountancy firms to lower their prices.
Try any of these suggestions, and you could save a fortune.
Contact Them In Quiet Periods
We’ve all had quiet periods in our jobs, right?
Freelancers definitely feel this the most.
There comes a point in most business owners lives when you’re just desperate for work.
Let’s imagine you sell homemade jewellery at ||$||30||$|| apiece.
During the festive period, your profits are booming.
You’re making hundreds of sales a week!
But then January hits.
Everyone’s broke - including you - after Christmas.
From present buying to work parties, cash has been constantly splashed.
But you still have targets to meet and bills to pay.
So, when a number of clients offer to pay £15 per piece , you graciously accept.
The same applies to accountants.
After tax season, a lot of their work dries up.
This is the best time to negotiate a cheaper deal - as chances are, they’re desperate for work.
So take advantage of that!
Get a top tier accountant for a bottom tier price.
Do Your Own Bookkeeping
I know, I know.
I’ve just spent all this time warning you off of doing your own accounts.
But - accountants and bookkeepers are actually different things.
You don’t need to understand fancy financial jargon to balance the books.
All you need to do is keep a record of your financial records - your income and expenses, for example.
I don’t mean keep a shoebox full of receipts under your bed.
(Not unless you want your accountant to kill you.)
You need to keep a clear, accurate record of all your financial statements…
Which you can easily hand over to your accountant as and when they need them.
If you keep on top of the task, it can be completed in mere minutes.
So why pay to hire someone to complete that short task for you?
Ever heard of a virtual assistant?
As the name suggests, they’re assistants that work virtually.
But did you know what you can actually hire one that specialises in accounting?
Obviously, there’s no guarantee that accountants found on sites such as Fiverr are legitimate.
But if you put an adequate amount of research into each accountant - and don’t have any ridiculously difficult tasks to complete - you should be fine.
Obviously, if you have a complicated financial history, you’d need someone a little more specialised.
But if you’re looking for someone to create a financial statement for you, for example, you can afford to use a general accountant.
When you hire an accountant, you’re bringing in someone to fill a greatly important role.
They need to have the knowledge and drive to contribute to the growth of your business.
They also need to have your companies best interests at heart.
So carefully choosing an accountant is highly advised.
It’s not a one size fits all, you dream accountant could be your best friends nightmare.
(Okay, that is a little extreme.)
To ensure that they’re the right fit for you, ask them questions.
Have they worked for a company at the same stage of development as yours?
Have they had much experience in the things you need them to do?
Do they have any fresh and interesting ideas for your company?
What services are they strongest at? Weakest?
It’s open and honest questions like these that will help you tailor the perfect accountant - and also help you understand what kind of accountant would suit you best.
But, your issue now is where to find this so-called perfect assistant?
You have a number of options really.
You could search your local directory to find chartered accountants in your area.
Or you could go online and use freelancing sites to try your luck with virtual accountants.
But, if you’re sick of spending hours on Google comparing different firms - or you just simply don’t want to put the effort in yourself…
You could always come to us!
We assess your needs against what each firm offers and find the ones who we know will suit you.
In fact, we can send you up to four quotes from the top accountancy firms.
We’ll put all the work in, while you focus on what you do best.
There we have it.
Everything you need to know about finding the perfect accountant - including just how much they cost.
I can tell that you’re desperate to start your hunt and get your finances sorted ASAP.
Not to worry - I won’t keep you much longer.
I just wanted to remind you to use my top tips to score a cheaper accountant!
Trust me, those tips are vital if you want to save money.
So what are you waiting for?
Just fill in our short form and we can find up to four of the best quotes for you!