Accountancy costs?

[baldyman27]

I started a construction business at the start of the year (please don't laugh!) Things weren't as bad then and when I met with an accountant re doing my books etc., he quoted me a figure of E4000 for the year based on my prediction of E250,000 turnover which I was reasonably confident of at the time. Having never run a business before I didn't know what was involved in doing the books for that size of business. Since then , however, I've come to realsise that my accounts are probably being done by a trainee in a few hours every 2 months and the fee seems exhorbitant to me now. The facts of my business are roughly as follows:
Turnover (expected) - E150,000
1 employee, PAYE/PRSI returns monthly
Vat returns bi-monthly.
I know my fee is agreed for the current year, just wondering should I be trying to re-negotiate for next year? Also, I have been assigned my 5th trainee in 9 months, something which greatly annoys me.

 

[Rigoletto]

make your concerns clear to your accountant in written from.

the amount of work required for your small business would be minimal and would be easily done by a trainee as long as they are supervised and signed off by a more senior person. But €4000 is a tad high. It is not easy to change accountants, better to renegotiate your terms and costs.

just a thought, with the construction industry being so quiet at present, why not use any down time to take on a part time book keeping course yourself. it would be simple and easy to do your accounts (just an hour or so each night). then you need only an accountancy firm for yearly audit, corporation tax and P35 return. Vat, Paye/prsi, invoicing could be done yourself with any one of the many accounting packages (Sage/Tas books et all)

good luck!!

 

[ubiquitous]

It is not easy to change accountants,

It is very easy to change accountants - especially easy for a new or recently-commenced business.

If the OP needs or wishes to do so, all they need to do is find another accountant, agree terms and leave it to the new accountant to inform the old one, and request carryover information. They will also need to settle their bill with the outgoing accountant for work done to date.

There should be no need for an audit unless the OP has a limited company and its CRO returns are late.

The OP should definitely try to renegotiate their fee quote. However if the price was agreed as a "fixed price quote" the firm may claim that its done deal. That's one of the problems with fixed price quotes , they can sometimes tie the consumer into a bad deal. Still if the OP is unhappy with the deal, they can simply walk away and go to another firm.

 

[baldyman27]

Thanks lads. I have no qualms with the current deal, I agreed it and its being paid monthly by standing order so he'll be fully paid up come the end of the period. As for doing the books myself, I'd love to but my nights are spent pricing jobs as it is so for the immediate future will be engaging an accountant. Any idea as to what a fair price would be?