Written by Matt Reed Reviewed by Heleana Neil Updated on 9 October 2024 On this page Accountant Costs How Much Do Different Accountancy Services Cost? Factors Affecting Accountancy Costs Can You Get Accounting Services for Free? Verdict Need Help Finding an Accountant? FAQs Expand Hiring top accountants can cost small to medium-sized businesses between £60 and £450 per month, depending on your business size.Preparing financial statements, overseeing payroll, and handling bookkeeping, hiring an accountancy firm can free up business owners to focus on running and growing their company.In this article, we’ll explore all the costs associated with UK accountants and what to consider when selecting accounting services. Accountant Costs in 2024: Quick Summary One-off accounting: around £25 – £35Specialist accounting: around £125 – £150Comprehensive accounting: around £150 – £400To find out exactly how much an accountant will cost for your business, try our free quote-finding tool by clicking on one of the lines above. Just provide a few brief details, and we’ll match you with trusted accounting firms that meet your needs. You’ll receive tailored, no-obligation quotes to help you compare and save. How Much Do Accountants Cost?More comprehensive accounting can cost around £60 to £450 per month, depending on the size of your business. For large businesses, this number will be higher (around £600) as they have a higher number of employees and a bigger turnover – factors that can impact the cost of your accounting.Accountants can be paid annually, monthly, or hourly, depending on the number and type of accounting services you need from them. If you need regular accountancy services and advice, you can opt for a package, which you pay for monthly or annually. How Much Do Different Accountancy Services Cost?The number and type of accountancy services a business needs – and therefore the overall cost of these services – will depend on its size and business structure.You may opt to use an accountant for one-off services instead of paying them for a monthly package of services. In this case, you will be paying the accountant by the hour. In general, one-off accounting will cost around £25 to £35 an hour, and more specialist accounting costs around £125 to £150 an hour. However, some accountants also have a flat fee for certain tasks.Below are cost estimates for paying an accountant a one-off fee for a respective service.Accountancy servicePriceAnnual accounts and tax returnAround £300 to £1,000 per annum (depending on size of business)Director’s tax returnsAround £150 to £300 per returnVAT returns£100 to £300 per quarter (depending on the size of the business)General bookkeeping£25 to £5o per hourPayroll services£50 to 200 per month (depending on employee numbers)Bank reconciliation£25 to £50 per hourAccounts payable/receivable£25 to £50 per hourDay-to-day financial and tax advice£25 to £300 per hour (depending on speciality of advice)Maintaining business accounts£60 to £600 (depending on annual turnover and package deals)Specialist accounting£125 to £250 per hourNote: All prices exclude VAT and may vary depending on case complexity and business size.It’s worth noting that the above services will typically be included in most accounting packages for businesses. A holistic package could be more beneficial, both financially and logistically, if your business requires multiple services at once.Still, if you run a start-up or small business, you may not need regular or extensive accountancy service packages. But as your business grows, your tax and accountancy needs will grow too, and become more complicated. You can then choose to scale up to a regular monthly package. Did You Know? 71% of small businesses outsource their tax preparation, while 50% outsource payroll, 48% outsource auditing, and 30% outsource tax planning. Only 16% outsource their personal finances, while 14% outsource bookkeeping. What Are the Factors Affecting How Much Accountants Charge?There are a few factors that will impact how much your accounting services cost, including:The size of your businessThis is determined by your annual turnover. The higher this is, the more you can expect to pay – after all, the tax and accounting workload placed on your accountant will be higher. For example, the cost of maintaining your business accounts depends on your monthly turnover.Complexity of financial transactionsRelated to this is the complexity of your finances. Businesses with intricate financial activities or multiple income streams may incur higher fees due to the increased workload for the accountant.This tends to be correlated with business size but not always. For instance, a company working with international taxation, specific regulations, multiple currencies or detailed contract clauses is going to have more complicated needs than others.Being a limited companyIf you’re registered as a sole trader, your accounting costs will be lower than those of a limited company. Limited companies have more complex needs and have to comply with harsher accounting rules. Bookkeeping is much more stringent and comprehensive, for instance, so the cost may be higher. Limited companies will also need other services, such as tax accounting.One-off or continuous serviceIn the long run, hiring an accountant every month or quarterly will work out cheaper and many different services will be included in the one package. Accountants working for you regularly will also be able to discover areas where you can save money, as opposed to a one-off basis where they won’t be able to spot these kinds of things.Location in the UKAccounting fees can vary by region in the UK, with services in larger cities like London typically costing more. Get free quotes from trusted firms Are you looking for an accountant for your business? Yes No It only takes 30 seconds... Can You Get Accounting Services for Free?The short answer is yes. You can access accounting services for free through DIY methods, or free software. Cloud-based software has evolved to produce efficient and helpful tools to assist you with services such as bookkeeping and payroll.Still, DIY accounting isn’t suitable for every business and has varying pros and cons that are worth considering compared to professional accountancy. Here’s a quick rundown.DIY accounting: What could it cost you?With DIY accountancy, the overall cost is a little harder to calculate. That’s because instead of paying one firm or accountant for particular tasks, you are taking on the work yourself usually via software, apps, and educational resources. Here are some direct costs you may need to consider:Accounting software: There are free accounting tools available, such as Wave Accounting, which offer basic functionalities suitable for very small businesses or sole traders. But typically, you may need more comprehensive solutions like QuickBooks, Xero, or Sage to provide advanced features. Subscription costs typically range from £10 to £50 per month, depending on the package and functionalities you require.Payroll software: If you have employees, you’ll need payroll software to manage salaries, taxes, and deductions. Costs can range from £5 to £30 per month, depending on the number of employees and features.Expense tracking apps: Tools like Expensify or Receipt Bank help in managing receipts and expenses. These can cost around £5 to £15 per month.Training and educational resources: Investing in learning materials, such as books, online courses and more, to understand accounting principles and tax laws can cost between £50 and £500, depending on the depth of content. Attending workshops might cost £100 to £300 per session, for instance. However, if you just need a guide on using relevant software, you may find or receive a webinar for free.You may also face indirect costs, such as the lost time you spent learning and managing the accounting side of your business over other areas. Equally, should you make a financial error, miss a deadline or face an audit, you could get a penalty, fine or other fees which might make the savings of using a DIY method over a professional one obsolete.DIY accounting vs hiring a professional accountantAn easier method of assessing the benefits and downsides of DIY accounting and professional accounting is to compare them directly.CriteriaDIY accountingHiring a professional accountantCostLower direct costs but potential hidden costs from errorsHigher upfront costs but potential savings in taxes and timeTime investmentHigh – you handle all tasks yourselfLow – frees up your time to focus on your businessExpertiseLimited to your knowledge and learning capacityHigh – access to specialized skills and up-to-date knowledgeRisk of errorsHigher risk due to lack of professional expertiseLower risk as professionals are trained to avoid mistakesComplianceResponsibility on you to stay updated on lawsAccountant ensures compliance with current regulationsFinancial insightsLimited strategic adviceProvides valuable insights for growth and optimizationControl over financesFull control and immediate access to financial dataLess hands-on but with professional oversightFlexibilitySchedule tasks at your convenienceMay need to coordinate with accountant’s scheduleScalabilityMay become overwhelming as business growsCan scale services to match business growthStress levelsPotentially higher due to workload and responsibilityReduced stress knowing finances are professionally managedWhen to consider DIY accounting?Ultimately, not every business will be suited to DIY accountancy (unless you are a trained accountant yourself. Here are a few points we think your business and you should hit if you are to try DIY accounting:Startups and micro-businesses: If you’re a sole trader or running a very small business with straightforward finances, DIY accounting may be sufficient, especially if you have a tight budget.Simple financial activities: Businesses with minimal transactions, no employees, and simple income streams might manage without professional help.Basic compliance requirements: If your industry has minimal regulatory requirements and a low risk of audits, DIY accounting could be adequate since you won’t be as likely to get hit with expensive fines.Willingness to learn: Of course, you’ll need to be comfortable learning accounting principles and staying updated on tax laws for your respective industry, as well as being capable of handling (and perhaps even enjoying) financial tasks.When to consider hiring a professional accountant?For most businesses then, hiring a professional accountant is the better call. Here are some reasons you may want to consider professional accountancy over DIY use:Business growth: As your business expands, the volume and complexity of financial transactions increase, making professional assistance more valuable. If you require strategic financial planning, budgeting or forecasting to guide business decisions, professional help can also be a major boon.Complex financial activities: If you deal with multiple income streams, international trade or complex contracts, an accountant’s expertise becomes essential.Time constraints: When administrative tasks start to consume time better spent on strategic activities, outsourcing becomes advantageous. That could be particularly important at specific times of the year, such as towards the end of the current financial year in April 2025.Regulatory compliance: Industries with stringent compliance requirements benefit from professional guidance to avoid penalties. Did You Know? Accounting and IT services are the most popular outsourced processes for small business. Verdict The cost of an accountant will depend on your business size and turnover. Small businesses can expect to pay around £60 to £450 a month, depending on the services they need.Outsourcing accounting services saves time, resources, and money. When you outsource, you can rely on a professional accountant to offer advice and guidance on typically complex issues. If your purse strings are a little tight, you can opt for a lower-cost method through free software or DIY methods. But these are only suitable for start-ups and small businesses, as they can become less manageable as your business grows. Need Help Finding an Accountant?Our free quote comparison tool matches you up with accounting firms that are suited to your business. Just give us a few brief details about your company, and you’ll be contacted by these trusted firms with tailored, no-obligation quotes and answers to your questions. FAQs Should you shop around for accounting services? Yes. Accountants calculate their fees based on a few different factors, including your business’s turnover, the size of your business, and the complexity of the services they’re offering.Because many accountants calculate these fees in different ways, it’s important to shop around and find the best value for money for your business. Written by: Matt Reed Senior Writer Matt Reed is a Senior Writer at Expert Market. Adept at evaluating products, he focuses mainly on assessing fleet management and business communication software. Matt began his career in technology publishing with Expert Reviews, where he spent several years putting the latest audio-related products and releases through their paces, revealing his findings in transparent, in-depth articles and guides. Holding a Master’s degree in Journalism from City, University of London, Matt is no stranger to diving into challenging topics and summarising them into practical, helpful information. Reviewed by: Heleana Neil Business Services Editor Heleana Neil specialises in Business Services, managing the strategy and production of content for SMBs, helping businesses with the challenges and opportunities they face today. Covering everything from payroll to payment processing, Heleana uses her expertise to help business owners make better, informed decisions and grow their companies.