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. So is your accountant charging more than they quoted?
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.
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Changing Accountants
Is your accountant charging more than they quoted?
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.
Preparing To Get Your Accounts In Shape
As the year draws to a close it is a great time for you to focus on the previous year and plan for the year ahead, but unless you have a good grasp of your accounts how do you even know what you are looking at or where you should be spending more or less money?
As Xero Accounts in Peterborough we like to help business owners make the most of their business and their money, so we thought we would share these top tips to help business owners get their accounts in shape.
While it may not yet be financial year end, it does quickly come round, so take the time to go through those sales receipts and invoices while your business is quiet, check them with your bank account to make sure it all matches up. If you have a quality accounting software like Xero you’ll be feeling very pleased with yourself right now as this is already done for you so you’re already a step ahead of the game.
Talk to your accountant; as a Xero Accountant in Peterborough myself, I can assure you that we are not scary and we will happy to talk through your accounts with you to give you a rough idea of what your tax may be, any areas for improvement or things to be aware of. We can also prepare to help you save the right amount of money, but also avoid any big and unpleasant surprises.
Take the time to look at how far you have come over the last year; has the business grown, how do your revenues and profits look when compared to the year before, are your sales trending up (if you’re using Xero Accounting you can see this on your sales graphs), did your sales expenditure give you any cause for concern and perhaps most importantly; did you achieve your goals set at the beginning of the year?
Tax laws and regulations are always changing so now is a good time to see what has changed in the past year and what is expected to change in the upcoming year; give your accountant in Peterborough a call and they will be able to send you links to articles you need to be aware of for your business or industry.
The end of the year is also a good time to update your payroll and do things like hand out bonuses, save time by paying employees electronically and review employee status; remember if you get your employee status wrong this can cost you money as you may be penalised by the government.
If you would like to start the New Year with a new Xero Accountant in Peterborough then why not give us a call; we would be happy to have a chat with you about how we can help, what we can offer and why Xero could save you time and money!
Dedicated Contact
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Tax Efficient
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.
Quick Turnaround
We aim to turn around the annual accounts and tax returns quickly to give you visibility of your tax bill well in advance of it being due.
