Concerned about current (ACCT) Accountant / Bookeeper. - The Book-keepers Forum (UK)

l3610n · Member

Concerned about current (ACCT) Accountant / Bookeeper.

BackOfficeGroup · Guru

Jim

A few questions for you....

How are your invoices raised, by this I mean who raised them and are they raised in Sage?

I think 10 hours seems pretty high for that level of work - what reports do you get if any? Do they supply any stationery for the paperwork?

The payroll fee is very high. Do you take dividends? Do you receive payslips? Who handles the payment to staff and HMRC for the PAYE NI payments?

The accountants fee is also pretty high for the size of company turnover - does this include corp tax returns, annual co returns, your SA, or are these extra?

Would be nice to know where you are based.

P

l3610n · Member

Hi P,

We visit the client and complete the job, we create an invoice there and then in a program called Sliq invoicing and hand it to the customer who also then pays by cheque or chip and pin, occasionally for are larger business clients they get a chance to pay within 14-30 days.

I get a payroll slip each month, plus paroll report just for me and the other employee.

When the Vat is due I get a report (done in sage) showing VAT in and out and invoices / expenses (in their various forms).

When i get the payslip i log into my business online banking and pay myself the right amount and HMRC there little bit.

The fee includes everything, but i get the feeling its going to just keep on increasing!

Thanks! - Jim

BackOfficeGroup · Guru

I would most certainly shop around!

Is this your Sage database or does it belong to the acct/bookkeeper? I would look at half the costs in relation to the bookkeeping, the VAT is about right and the payroll would also be a half that price for just 2 of you.

As the accounts are unaudited, I would say you could save a few huundred pounds on that cost.

Thats all at current levels of business of course.

P

Alison · Senior Member

Hi

Would say that if you don't have many transactions a month on sales and purchases then £100 a month for bookkeeping is quite high. Think this may be because it sounds like you are using an accountant they charge higher hourly rate for the bookkeeping, would say in most areas you can get freelance bookkeepers ranging from £8 (not as experienced/qualified) to £15 an hour (£25 an hour if London) and sounds like the number of transactions a month would be no more then 3 hours a month.

For the payroll again think this is based on accountants hourly rate, I know lots of bookkeepers charge less for payroll a month some based on a time rate of their usual bookkeeping hourly rate or some charge per payslip.

With end of year accounts believe that you can get cheaper rates for Limited Company, would say to get this it is normally small independent accountants who charge a fair rate and accurate accounts (larger firms sometimes get office junior to do the work then charge high amounts).

Alison

l3610n · Member

This is something else I'm worried about, The sage software belongs to the accountant, and I'm afraid if I tell her I'd like to change accountants and get someone else in to do the book-keeping that she won't give me the company file I've been paying her to update..

It's sort of why I havent changed up until now really! but I just think all professional fee's are starting to look like I wont have much change from £5000 and I only pay myself basic wage (6-7k) + expenses (4K) + some dividends (5k?) if theres spare money in the pot...

Alison · Senior Member

Is there a reason why you set up as a Limited Company? was it to get premises and the landlord would only deal with Limited Company or something along those lines (we had to be a Limited Company to get our premises) because would say that if there is no real reason for being a Limited Company and if you were a sole trader instead it would keep your costs down, if you felt confident you could even do your own bookkeeping and tax return or if not then as a sole trader accountants might charge less or if a sole trader there are some bookkeepers who are qualified to deal with sole trader accounts and tax returns and normally bookkeeper hourly rate is a lot less then accountants.

Alison

l3610n · Member

I started out as a limited company and vat registered at that on my accountants recommendation. I traded as a Sole trader for about 6-8 months built up some clients and then "sold" the concern to the limited company (which was beneficial according to the accountant at the time) for a some of about 18k. (which I could apparently remove tax free?) About 10k of this remains in the business as a director loan as I still like having it there as working capital.

- Jim (Surrey)

Alison · Senior Member

HI Jim

It explains why you are paying a lot being in Surrey, everything costs so much more in the South of England.

6 - 8 months of sole trader seems a bit soon to have changed to a Limited Company, I know a lot of sole traders who change after the first years trading or possibly the second when the first or first and second tax return(s) done and they have a years or two years worth of trade to make a decision on how things are going, possibly your accountant preferred you as Limited Company so they can charge more for it.

Alison

l3610n · Member

I get that feeling too, Hindsight is great huh!

Susie Sue · Senior Member

I agree with Alison - you could probably get the bookkeeping and payroll done much cheaper with a bookkeeper/doing it yourself rather than paying an accountants hourly rate - even in the south! And remember all these things can now be done remotely via email and post (when they're not on strike!) Would it be very professional of them to withhold your records or not give you a backup? especially if you have paid up to date etc.

Jennifer Higgins · Newbie

did you sign a letter of engagement?

farmergiles · Veteran Member

I Have sent you a PM