Your accountant or bookkeeper has contacted you to talk about increasing your accountancy fees, but why are they increasing?
It’s been a tough time for all businesses, and your accountant or bookkeeper is no different. There may be many reasons why your fees are increasing, but let’s look at the main culprits:
Your business has grown
This is great news! This generally means you’ll need more support from your accountant or bookkeeper, for example:
- you need business plans, and cashflows to help plan your growth, or to access finance
- you’ll then benefit from regular accountability calls with us to help you to stay on track towards your goals
- you may need assistance to help with finance and grant applications
- for accounting, VAT and bookkeeping, we’re dealing with more transactions, and this takes time to manage
- you might take on more staff (yay!) so your payroll needs increase
- you may need to register for VAT, so there is the registration, claiming VAT from before the registration, and managing your VAT returns
- you have more directors, and they have needs too
- you’re asking for extra services (we have a “can you just” fee for things that seem simple but take ages)
- you need more complex advice to help you with a certain thorny tax issue or business problem
Legislation is constantly changing
There are always changes to rules and regulations, but over the last couple of years, your accountant has kept up to date with sometimes daily updates from the Government. We’ve also been helping you with guidance, claiming grants, and furlough.
And it doesn’t stop there, we’ve now got Budget announcements twice a year, and more legislation coming up like MTD for sole traders and landlords.
Many accountants are leaving the profession or retiring, as there is just so much to keep on top of.
HMRC are massively behind following COVID lockdowns, they’ve even closed their phone lines on Fridays to try to catch up!
This means that it’s taking us longer to contact them, sometimes spending hours trying to get through to them, and going back and forth with them.
This includes trying to correct their errors, claiming refunds for you, and changing your details that HMRC hold.
We’re investing in the client experience
You need an accountant or bookkeeper who has your best interests at heart. This involves investing in software and training, and constantly keeping up to date.
It means having the right level of support for you, employing the best humans with the right experience and qualifications to look after you.
Did you know we each have to have a minimum of 40 hours continuous professional development each year?
We’re also recognised in the industry as pace setters and innovators, and we do this to be more efficient, and pass these efficiencies and time savings onto you.
Things cost more
Inflation is at an all time high at the moment, and many costs are increasing including energy, fuel, products and imports.
This is affecting all businesses, including your accountant.
It’s crucial for businesses to cover costs, to stay in business and to keep their employees employed.
You’d expect your accountant to take the advice we give to you, right?
Could you be making it cost more?
We ‘re quite choosy about who we work with, and to have the best relationship, we’re looking at how we work together, while living into our values.
But sometimes things don’t quite work out, and you could be making more work for your accountant or bookkeeper.
Do you keep your records up to date? Do you get back to your accountant with the info they’ve asked for, and quickly?
Do you take on board our advice, or do it your own way?
These aren’t necessarily bad things, but it does mean your accountant is spending way more time looking after you, than someone who’s responsive and up to date.
You expect us to deliver the highest level of service
We’re also growing, which is what you’d expect from an accountant helping you to grow.
In order to deliver to the highest standards, we recruit the right people. We’re looking for quality, experience and the right values. If our team are doing an awesome job supporting you, then we’ll reward them for that.
You want your accountant to value themselves, as we value you. You expect us to do the difficult things, and do them well, you don’t want us to make a mess of things, and cause you problems.
And this comes at a cost. We are regulated by the ACCA (Association of Chartered Certified Accountants) but did you know anyone can be an accountant?
We’ve seen some horror stories from clients who’ve come from inexperienced or bad accountants, letting them claim self-employed grants when they’re a limited company, and giving poor advice which costs you more in the long run.
Best to get it right in the first place, with an accountant or bookkeeper who is regulated, experienced, and prices their accountancy fees accordingly.
Are you working with the best of the best?
Is your Bookkeeper working to the highest standard, do they communicate well with you, and with us?
We only work with the best advisors. If your advisors aren’t experts in their field, and don’t communicate with us, this can make life difficult, and yes you guessed it, things take longer.
- For bookkeeping we work with Emma Fox and her team at Fresh Financials, award-winning Xero Gold partners, like ourselves.
- For the best independent financial advice we work with Kevin Morris of Fern Financials.
- For HR and employment law support we work with Sandy Green at The HR Dept.
- And for complex tax advice we work with Ray Abercromby.
If you’re not sure why your costs are going up, or your accountant isn’t transparent on your fee increases, give us a shout!
Also check out our blog on how much accountants cost.