If you have made the decision to switch from full-time or part-time permanent employment to the potentially daunting world of contract work, then you may be wondering what is a reasonable amount to pay for Limited company accountancy fees.
It can seem like an impossible task to set up your own limited company to work under when you initially set out as a new contractor, or even for the seasoned professional there may well be gains to be made from reviewing your current Limited company accountants fees.
Why do I need an accountant?
It is possible to take on the mammoth task of managing your own limited company accounts but this can be extremely time consuming and potentially costly to you as your time could be better spent on income generating tasks.
There are a number of key benefits to working with an accountant when running your own limited company and especially for those who are contracting, simply because it is unlikely that you will have the time. If you consider that you will often be working on your own and therefore your time is precious and the support of a good accountant can be a welcome input.
Generally, Limited company accountants will be fairly low in comparison to the potential gains that can be made in terms of time as well as financial, especially if you find the right accounting partner. There are a couple of potential routes to go down so for new contractors you should carefully consider your options before you decide on which is best for you and your business.
Is it better to use a specialist or high street accountant?
It is possible that a good qualified high street accountant should be more than competent to be able to carry out the general accounting work for any contractor, however, there are a growing number of specialist accountancy practices such as Gorilla Accounting who are potentially more knowledgeable about your circumstances. You should also find that the fees for a specialist contractor accountant could be similar to those of a high street accountant or even lower in some cases.
You might think that Limited company accountancy fees from high street accountants would be lower because they are more competitively priced and the fact that they are a local company. The truth is that Limited company accountants fees from a specialist can and often are lower because it is a more competitive market, higher volume and generally telephone based so more efficient.
The other major advantage to working with a specialist contractor accounting firm for you is that they would generally have a deeper understanding of legislation specific to you such as IR35 and tax updates specific to contracting.
Does cloud-based software effect Limited company accountancy fees?
Most modern accountancy firms will have access to some kind of cloud-based software or will provide some sort of package within the standard services that they offer especially specialist contractor accounting firms. It is becoming more and more common for contractors to utilise cloud-based accounting software to help streamline their business finances which can be accessed at the touch of a button 24 hours a day, 7 days a week.
You may also think that Limited company accountancy fees would be higher if you are given access to cloud-based accounting software. The truth is that modern accounting software is helping to reduce Limited company accountancy fees which is a big step for most contract workers.
What should I expect to pay?
As with any other fee-based service, you will find that there is a range of costs for Limited company accountants fees and these can vary dramatically depending on the type of accounting firm you are speaking to and what services you are looking for. You should also consider that the more expensive services are not always the best option as ‘you get what you pay for’ does not always apply.
Some of the main considerations when you are considering your Limited company accountants fees are:
– Professional qualifications
– Size of firm
– Level of service
– Recommendations / testimonials
These are just some of the points you should factor in when you make your decision of which accountancy firm you should work with so it is important to get all the information you need before you commit to a new partner.
If you need more help with how to approach your limited company accounts or if you are looking for a second opinion on which is the right Limited company accountants fees then you can call one of our Gorilla Accounting experts to find out more.