How Much Does it Cost to Hire an Accountant?
A common concern among businesses thinking about hiring an accountant is cost. ‘How much does an accountant cost?’ is one of the most frequently asked questions! Unfortunately, it’s also a very difficult question to answer, as ‘accountant’ isn’t really indicative of a specific job. Accountants offer many different services, ranging from payroll and HR through to auditing and tax returns, so the amount you’ll pay will be largely determined by what kinds of services you will require from your accountant.
You may find that many accountants charge on a by-the-hour basis. This is because it is often impossible for them to estimate how long any given job will take without a more detailed knowledge of your existing systems, processes, and paperwork. For example, a company may hire an accountant for tax services. If the business has all the paperwork at the ready, this should be a relatively quick and simple task for the accountant. If, however, your business has been a bit lax in keeping up with accounts, the accountant could find they need to spend more time preparing the paperwork before getting started.
You may find some accountancy firms that are happy to provide a fixed rate, but this will be based upon the specific task at hand, and the current state of your financial reporting, therefore it is difficult to provide a figure. However, what is clear is that hiring an accountant through an accountancy firm is often a much more cost effective solution than hiring a full time accountant on the payroll. Here’s why:
- An accountant can be hired as needed, for whatever tasks may pop up. This helps to save your business money as you won’t be paying for any periods of inactivity or downtime.
- Engaging the services of a temporary accountant means they will not be on your payroll, and will not require the same benefits (pension contributions etc.) that a full time employee does.
Depending on your exact needs and requirements, you should expect to pay between £500 and £3500 per year, or more, for the services of an accountant. At compareyourbusinesscosts.com, we’re committed to making sure your business never pays more than it needs to. That’s why we’ll help you to compare accountancy firms in your area to find the most attractive and suitable rates for you.