How much does an accountant cost?

How Much Does an Accountant Cost?

Running a business is tough enough without trying to figure out tax returns, VAT, or payroll on your own. That’s where accountants step in. But one of the first questions every business owner asks me is: how much does an accountant cost? And honestly, the answer isn’t always straightforward.

Costs vary depending on your business size, the services you need, and where you’re based. A self-employed consultant in Dorking with straightforward accounts isn’t going to pay the same as a limited company with 25 staff and multiple revenue streams.

In this article, I’ll break down average accounting fees in the UK, explain the different pricing models, and share some insider tips from my 10+ years of working with accountants and small business owners. If you’re looking for accountants in Dorking or just want to know what’s reasonable to pay, you’ll leave with a clear idea of what to expect, and how to get the best value.

Average Cost of an Accountant in the UK

Let’s start with the basics. A ballpark figure for a general accountant’s services looks like this:

• Sole traders: £100–£150 per month

• Start-ups/small limited companies: £300–£400 per month (plus VAT)

• Established businesses with staff: £500–£1,000+ per month

That’s the range you’ll see quoted most often. Some firms will be cheaper, especially if they’re online-only. Others, particularly local firms that offer hands-on support might cost more, but they often deliver more value over the long term.

Example from my work: We once helped a café in Surrey switch from a cut-price online accountant (£79/month) to a Dorking-based firm charging £350/month. Sounds like a big jump, but within the first year the café saved over £5,000 in VAT reclaims they’d previously missed. Sometimes cheap really does cost you.

What’s Included in an Accounting Package?

If you’re paying a monthly fee, you should expect a “core package” of services. A typical small business package includes:

• Annual accounts

• Bookkeeping

• Corporation tax returns

• Director’s personal tax return

• VAT returns (quarterly)

• Payroll for a small team

• Ongoing advice when you hit a tax snag

For smaller businesses in Dorking, say a local contractor or shop. These packages often start at under £50 a month if you go bare-bones, but realistically the £100–£400 bracket is where you’ll find accountants who answer your calls, keep you compliant, and give you peace of mind.

Tip: Always ask exactly what’s included. Some firms bundle bookkeeping, others charge extra. Clarify upfront so you don’t get stung later.

Tax Returns & Self-Assessment Fees

Not everyone needs year-round support. If you just want help with your annual tax return, accountants usually charge a one-off fee.

• Basic self-assessment: £150–£300

• Complex cases (multiple incomes, rental properties, freelancers): £300–£500+

The more income sources you have, the more it costs. That’s because your accountant has to dig deeper into allowances, deductions, and HMRC reporting.

Personal insight: I’ve seen plenty of sole traders in Surrey who thought they were saving money by DIY-ing their tax return. More often than not, an accountant would have spotted at least one expense or relief they’d missed, sometimes saving more than the accountant’s entire fee.

So while you might see “£200 for a tax return” and think it’s expensive, the potential savings (and stress avoided) make it a no-brainer for most business owners.

Pricing Models: Monthly, Hourly, or Pay-As-You-Go

Not every accountant charges the same way. Here’s what you’ll encounter:

Monthly Retainer (most common)

• Certainty in budgeting.

• £100–£1,000 per month depending on size and services.

Hourly Rate

• £35–£60/hour for basic services like bookkeeping.

• £100–£300/hour for specialist tax planning or financial advice.

Per Service

• Bookkeeping: £20–£50 per hour

• VAT return: £150–£250

• Payroll: depends on number of employees (£5–£10 per payslip is common).

  
  

Insider note: Mixing and matching can be smart. For example, one Dorking start-up we worked with paid a fixed fee for bookkeeping and annual accounts, but used hourly billing for ad-hoc growth advice. They saved hundreds compared to a big “all-inclusive” package they didn’t really need.

What Affects the Cost of an Accountant?

Several factors explain why your quote might be £150 while your neighbour’s is £600.

• Business size: More staff and higher turnover = more paperwork.

• Industry complexity: Contractors, landlords, and e-commerce often need more specialist advice.

• Record keeping: If your books are a mess, expect higher fees. Good bookkeeping = lower costs.

• Software: Using Xero, QuickBooks, or FreeAgent often makes accountants more efficient, and can reduce what you pay.

• Location: Yes, accountants in Dorking might cost less than those in Central London, but local firms often give better personal service.

Tip: Before you even approach an accountant, tidy up your financial records. Handing over a shoebox of receipts is a fast track to a higher bill.

Why Cost Isn’t Everything

This might sound strange in an article all about prices, but here’s the truth: the cheapest accountant isn’t always the best choice.

Here’s what matters just as much as cost:

• Qualifications: Look for ACCA, ICAEW, or similar.

• Sector experience: If you run a construction business, pick an accountant who understands CIS and subcontractor rules.

• Scalability: Will they grow with you, or will you have to switch when your turnover triples?

• Communication: Do they reply quickly? Do they explain things clearly?

Story from the field: A Dorking tech start-up we worked with went for a low-cost, remote accountant. Six months later, they realised the accountant had never filed their R&D tax credit claim, worth £30,000. They switched to a local firm, paid more each month, but saved massively in the long run.

How to Save Money on Accounting Fees

Okay, let’s get practical. Here are simple steps to keep your fees in check:

1. Keep good records: Digital receipts, organised invoices, no missing paperwork.

2. Use cloud software: Most accountants prefer Xero or QuickBooks. You’ll save time, and billable hours.

3. Agree on scope upfront: Don’t assume payroll is included - ask!

4. Compare at least 3 firms: Especially local ones. “Accountants in Dorking” is a great search to start with.

5. Build a long-term relationship: Switching accountants every year might seem smart, but loyalty can lead to better advice and bundled savings.

Conclusion: Finding the Right Accountant for Your Business

So, how much does an accountant cost? Anywhere from £100/month for a sole trader to £1,000+ for a growing company. It depends on your size, complexity, and what services you need.

If you’re based locally and searching for accountants in Dorking, you’ll find a good mix of independent practices and regional firms. Our advice? Don’t just chase the lowest fee, look for someone who understands your business and can save you money over time.

Ready to take the next step? Get in touch with a qualified accountant in Dorking today and compare quotes. A good accountant isn’t just a cost, they’re an investment in your business success.

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FAQs

1. Can I do my own accounts instead of hiring an accountant?

Yes, you can file your own tax return or run payroll yourself. But most small businesses find an accountant saves them time, reduces errors, and often lowers their tax bill enough to cover the fee.

2. Are accountants in Dorking cheaper than London firms?

Generally yes, regional firms often charge lower fees than city firms. But don’t assume cheaper means worse. Many local accountants provide highly personalised service at a fraction of London rates.

3. How do I know if an accountant is qualified?

Look for memberships in professional bodies like ACCA (Association of Chartered Certified Accountants) or ICAEW (Institute of Chartered Accountants in England and Wales). Always ask about experience in your industry too.

can view our ACCA accreditation here to confirm our firm’s credentials.