Accountants fees a small fortune. What’s reasonable?

[bobbybo]

Have been with a good big 5 accountant in Edinburgh for 15 years. Started with property portfolio paying £1300 a year in around 2009.
Now have a limited company for student accommodation , run by myself , wife and odd contractors for a few weeks for painting yearly. 72 rents in & paint , bits n pieces going out. Straightforward business like BTL predictable yearly with inflation.

Now being quoted 6.5k a year for that business.

Also have separate construction business Ltd we used to build the flats, now dormant but not closed. Quoted 4.5k for this years accounts for it.

Extras for meetings & personal accounts. Adds a couple of thousand on top.

I inflation calculated my previous £1300 a year and it’s £1900 in todays money.

Feels high, any thoughts on what would be fair level?

Thanks

[bobbybo]

Shiv_P said:

Find a smaller independent value accountant

Yes sounds about right. Anyone have a stab at what approx fees they would expect for that business?

[bobbybo]

FlyingPanda said:

It all depends on what you give them and how much they have to do. If you’re using half decent bookkeeping software (Xero, Quickbooks etc) and you’re using it well (ie: they don’t have to go through it correcting mispostings etc) and you file your own VAT returns then for a very small business with few transactions £1000 - £1500 sounds about right. Add in a bit more if they’re doing your annual SA return or if you have a complex personal tax structure, but I’d be surprised if you needed to pay more than £1900. The problem with using the ‘big firms’ for a very small business is you are paying for a big name but (in my past experience) the work is not being done by one of the big names, but usually by a recent addition to their team looking to build experience.

Edited by FlyingPanda on Monday 27th March 10:09

Yes I think the work is being done by more junior staff, & a chat yearly with partner.
My question and concern as a non accountant would be if moving to a smaller firm would the quality be similar? Or enough for what I need? The firm I’m with know their stuff & can answer anything. I did speak to one of those yellow shops you see ‘tax shop’or something, & they didn’t have a clue.

Some of the rural firms if you drive out of city I know people use & are a lot cheaper. City offices, rates etc.

[bobbybo]

Thanks for everyone for reply’s. Wife inputs with Xero & no we don’t get much attention.
Have a recommendation for another rural firm that has enough staff to give a skill spread, am going to take the leap.

Always great advice on PH when you need it :-)