Accountancy can seem a bit of a dark art at times, with so many types and sizes of accountancy practices, it’s sometimes hard to know if your business is getting value for money.
Some accountancies charge out hourly or by a tiered system depending on the business turnover and amount of employees. Many businesses don’t know exactly how much they will be paying per year until the invoice appears in their inbox. In many cases, the invoice you receive from your accountant isn’t itemised into the services or time provided, so it is very hard to know exactly what you are paying for.
As a business person, you need to keep a close eye on all fixed costs and look at areas where you can be more financially efficient. Without a clear pricing structure from your accountant, it’s impossible to understand if they are competitively priced. Here are a few tips to what you can do to understand your accountants charging structure better.
Check the services you are paying for
Does your accountant provide payroll services for your business?
If so they should be providing you with a fixed cost per employee or as part of an overall package, if you don’t know what that cost is, then check with them. Then you can see if a separate payroll provider can do the job for a better price.
Is your accounting software included?
If your business is using a cloud-based accountancy package such as Xero or Sage Online then you need to check if this is being provided as part of your accountancy package. If it isn’t, then check with your accountant and see if they can provide you with a cloud solution as part of your accountancy package.
Here at Direct Peak, we are Xero gold partners and we often have discounts available on Xero licences, thus we can pass on savings to our customers. We migrate all our new clients to Xero as part of our service and include two hours of free training to get your financial team up and running.
Does your accountant charge separately for financial reports?
If your business gets regular monthly or quarterly financial reports from your accountant, you should check if these are included in the base package or charged as an extra for each report generated. At Direct Peak we can include regular financial forecasts and managerial reports as part of your accountancy package.
Here at Direct Peak we quote what you will be charged. When we quote, we clearly list everything that is included so you know exactly what you are paying for, which means no nasty surprises when the invoice arrives. Our fees are completely transparent and there are no hidden costs.
Sometimes to get the services your business needs there is no other choice than to move accountants. Switching your services to another accountant is easy as pie, accountants are not allowed to put a fixed term of contract in place, so all you need to do to change accountants is give 30 days’ notice to switch providers.
We would always recommend that you give your old accountant notice when you are leaving them. However, if you choose Direct Peak as your new accountant, we can make this process easier for you. We will send your previous accountant a professional clearance letter that asks for all the required documentation and information that they hold for your business.
We will send your professional clearance letter to your old accountant on your behalf so you don’t have to do anything. This is the hardest part of changing accountants and absolutely nothing to worry about as we will do it all for you.
If you want more clarity on your accountancy bills, call us today.