Accountancy Fees

[dodo]

I'm self employed and I've been with the same accountant for the last few years. Last year she charged me €1,210 (€1,000 + 21% VAT). Now my accounts are very straight forward, I hand her my receipts and she sees my lodgements from my bank statements and does my accounts from this. The only other thing she does for me is registering and P45s for staff, which would be done only a couple of times a year.

I just wonder am I paying over the odds for what seems like at most 4/5 hours work a year. On top of this she is always late with work, reschedules appointments and has to be followed up to get the work done. Obviously I'm not going to continue with this arrangement and will be either doing the books myself or get another accountant.

****To make things a bit more interesting she's not a qualified accountant but something like a 'tax consultant'.

[midLouth]

How did you end up with that arrangement if she isn't an accountant?

[dodo]

She was reccommended to me by a college buddy. My accounts were in a bit of a state, hadn't been done in a while and he said that this lady had sorted out his books in a similar situation. I had no problem with paying her for the initial work as she had to do my accounts for previous years and sort of make them up from my statements etc.

[Hound]

The price seems reasonable to me. Accountants have to earn a living too you know!

But, based on your second paragraph, the client service is not.

Anyone who has to constantly ring up their accoutant or solicitor to get anything done is either a poor client (i.e. they refuse to pay a  fair fee or don't pay fast enough) or they've got the wrong advisor who simply provides poor client service.

[stiffler]

It may seem like 4/5 hours work a year, but in reality it is probably more.

Most accountants charge work on a time basis approach, so you can ask to see the breakdown of the fee; i.e. the number of hours spent on the job.

Are the receipts all business relevant and in date order? if not the accountant will have to spend time sorting these, which you will eventually be charged for.

If you have the time yourself , do up a spreadsheet of your receipts for the year, and let the accountant know that they can take these as total receipts in year.

[Shamrock Shore]

Jazes.

I'd charge double that.

(must send a bill to The Real Laois Lad)

[bingobus]

As an Accountant, this is prob the most common query/complaint. Luckily we would have a good timesheet system in place and can generally show clients the break down of time spent.

By the sounds of it your fee is prob reasonable while at the top of the range. Its the old chestnut, if the accounts where a mess at the start and it took a good bit of work to get them together, then the fee was set and charged. Accountants loathe to lower the fee and so its prob be carried forward on the amount of work done in the first year.

By the sounds of it, their is still prob a bit of work to do sorting out the info prior to the final accounts. The client service doesn't sound good, may be a case that you are down the list of her priorities or just that she is really disorganised.

[dodo]

Are the receipts all business relevant and in date order? if not the accountant will have to spend time sorting these, which you will eventually be charged for.

All receipts are business relevant and I have them sorted together by month. Volume wise it's not exactly a mountain of paper, she even commented on this herself.

By the sounds of it your fee is prob reasonable while at the top of the range. Its the old chestnut, if the accounts where a mess at the start and it took a good bit of work to get them together, then the fee was set and charged. Accountants loathe to lower the fee and so its prob be carried forward on the amount of work done in the first year.

By the sounds of it, their is still prob a bit of work to do sorting out the info prior to the final accounts. The client service doesn't sound good, may be a case that you are down the list of her priorities or just that she is really disorganised.

She had to sort out my accounts from when I started trading, first few years were quiet and took little time, business picked up and so too did the paperwork involved. I was delighted to have my accounts brought up to date and paid her gladly. It was then that she hiked up the fee to this current level, definitely not lowering the fee as you mention.

I'm well down the list of her priorities, this is why I'm so annoyed with her and am questioning the fees etc. I always pay her fees promptly but have to wait and follow up on everything.

Are her fees reasonable when you consider she is a 'tax consultant' and not a qualified accountant ?

What would a qualified accountant be charging roughly per hour ?

[bingobus]

At the end of the day, is she doing her job and are you paying your correct level of Income tax year on year. For a soletrader (which I assume you are), then the Accounting end of it should be fairly straight forward. Its very hard to say more without knowing your situation/turnover/profit etc.

Does she operate alone? Does she have office staff that would be doing the majority of the work and then she'll just review them and hold the final meeting? Is she qualified as a tax consultant?

Loads of questions but qualified charge out rates would be 3 figures per hour depending on their level of experience or senority. But I wouldn't be expecting them to be doing that level of work. It would be the office junior doing it.

[dodo]

She works on her own, so does everything from start to finish. Her card only says & Associates, no qualification mentioned. Anyway, it's time for me to get someone else or to do the accounts myself. Might train up as an accountant at them rates !
Thanks for the help.

Would be interested what other sole traders are paying accountants etc.

[magpie seanie]

Fee doesn't seem too bad if you were getting a good service.

[The Real Laoislad]

Do them yourself Dodo,Its actually quite easy when you know how,I had someone very highly trained and experienced show me how

Thanks Shamrock 

[dodo]

That's what I'd like to do, would have to get someone to give me some assistance or some computer package.
It is a long time since leaving cert accountancy !

[doire na raithe]

As an Accountant, this is prob the most common query/complaint. Luckily we would have a good timesheet system in place and can generally show clients the break down of time spent.

By the sounds of it your fee is prob reasonable while at the top of the range. Its the old chestnut, if the accounts where a mess at the start and it took a good bit of work to get them together, then the fee was set and charged. Accountants loathe to lower the fee and so its prob be carried forward on the amount of work done in the first year.

By the sounds of it, their is still prob a bit of work to do sorting out the info prior to the final accounts. The client service doesn't sound good, may be a case that you are down the list of her priorities or just that she is really disorganised.

and I assume you went to university.

[magickingdom]

I'm self employed and I've been with the same accountant for the last few years. Last year she charged me €1,210 (€1,000 + 21% VAT). Now my accounts are very straight forward, I hand her my receipts and she sees my lodgements from my bank statements and does my accounts from this. The only other thing she does for me is registering and P45s for staff, which would be done only a couple of times a year.

I just wonder am I paying over the odds for what seems like at most 4/5 hours work a year. On top of this she is always late with work, reschedules appointments and has to be followed up to get the work done. Obviously I'm not going to continue with this arrangement and will be either doing the books myself or get another accountant.

****To make things a bit more interesting she's not a qualified accountant but something like a 'tax consultant'.

4/5 hours work a year? i dont think so. at the rate shes charging you you should be sending her thank you cards