With the great enhancement in the number of accountants and accounting firms in London, the average cost of accounting services has enhanced. Also, keep in mind that online bookkeeping has become an important part of life for entrepreneurs. The prices for accounting services in London vary but when it comes to average cost of accounting service, what is paid by you in fees is either completely or mainly offset by the taxes they would save you.
So, how much do accounting services charge per hour? Generally, an accounting form in London does not charge by the hour, it would rather charge for what it is doing for you. One can ask what do accounts charge? Well, it depends mainly on the type of service they are offering you. Hiring an accounting firm is simple though; there are no sign-up charges. However, they may charge you a fixed price on a monthly basis. This is a detailed guide on the cost of accounting services in London.
The Factors Involved in Accounting Services Cost
Generally, the cost of accounting services depends on various factors, first of all, the size of business, then the type of business, the number of employees working for the company, the number of directors, the location of the business and similar factors. In case you are self-employed and require your accounts done and your tax return filed, the average cost a accounting firm in London would charge can be between £250 to 1000 +VAT.
The charges may enhance in case of a limited company with respect to turnover and number of employees. If the annual revenue of your business is £30,000, then you can expect to pay around £150 for your business accounts. In addition, you may need to pay £100 for VAT returns and £200 monthly if payroll services are required.
How Are the Accounting Costs Broken Down?
The cost of accounting services can either be calculated as a fixed fee or by hour. As per some of the accounts and experts, the hourly rates begin at around £20. Generally, accountants provide a variety of packages starting from £20 per hour. However, a typical accounting firm in London will charge a fixed fee, depending on the needs and requirements of the business. Accountants these days tend to offer distinct packages for the services. Hence, it has become a lot easier for the businesses to decide which package to choose.
As per some of the experts, the hourly rate charged by the accounting firms often varies greatly. For an average accounting firm in London, the typical cost would be around £35 per hour for the most basic accounting services, for instance, working on a tax return. However, for complex work like tax planning, they may charge you £150 per hour or even more than that at times. Anyway, it is the role of that particular accounting firm to prove that their cost is worth it, as they save their clients’ money and time.