It’s one of the first things people search for when they’re thinking about getting proper accounting support. And the honest answer is: it depends. But that’s not as unhelpful as it sounds, because what you need to know isn’t just the price. It’s what you’re getting for it.
This guide will help you make sense of accountancy costs, avoid a few common mistakes, and figure out what good value looks like for a business like yours.
Three mistakes worth avoiding before you even look at price
Going with your friend’s accountant
A personal recommendation is a great starting point. But your friend’s business is not your business. What works brilliantly for them might not be the right fit for you. By all means have a conversation with their accountant, but also speak to a couple of others. You’re looking for someone you can work with.
Shopping purely on price
Price matters. Of course it does. But if it’s the only thing you’re looking at, you’re likely to end up with the bare minimum. The cheapest accountant usually means basic compliance only, meaning they only file your returns and disappears until next year. If you want someone who genuinely helps you understand your business, you need to look at what’s included, not just what it costs.
There’s a useful way to think about this. Instead of asking “how much does this cost?” ask “what do I get for this, and how quickly will it help me get where I want to be?”
Assuming a fancy office means they’re good
It might. It might not. Location and office size say nothing about the quality of advice or the level of service you’ll receive. Include it as a factor if it matters to you, but don’t let it do the heavy lifting in your decision.
Five things to think about when deciding what to spend
What level of support does your business really need?
There’s a big difference between compliance services, which cover your tax returns and statutory accounts, and everything else. Everything else includes bookkeeping support, software setup, cash flow advice, tax planning, and having someone to call when you’re not sure what to do next.
You might not know exactly what you need right now. That’s fine. A good accountant will ask the right questions and tell you honestly what would make the most difference for a business at your stage.
What does the service include?
This is the one that matters most and the one most people forget to ask about.
Will you have a named person who knows your business? Will your figures be explained in plain English or just sent over and left for you to decipher? Can you ring with a quick question without worrying you’re running up a bill? Will they spot when something needs attention and tell you, or wait for you to ask?
You should get a feel for the answers to these questions from the very first conversation. If it feels transactional before you’ve even signed up, it probably will be throughout.
At Fresh Clarity, our ten minute quick query service is included as standard. You can pick up the phone and ask whatever’s on your mind without watching the clock.
Do they understand your sector?
An accountant who works with businesses like yours will already understand how your industry operates, what software tends to work, and what the common financial challenges look like. That saves time and often means better advice. It’s worth asking the question directly: do you work with other businesses in my sector?
Is the pricing clear and transparent?
A good accountant should be able to give you a clear, fixed price for what’s included and explain exactly how they’ve arrived at it. No estimates that balloon at year end, no surprise invoices for work you thought was covered.
At Fresh Clarity we calculate pricing during your first meeting and explain everything that’s included. Your price is based on your turnover, transaction volumes and number of employees, so it’s consistent and fair.
Do you like them?
This one matters more than people admit. You’re going to be sharing the details of your business with this person regularly. You need to feel comfortable asking questions, honest about when things aren’t going well, and confident they’re in your corner.
We think about this from our side too. We work best with clients who are engaged, ask questions, and value the relationship. It goes both ways.
So what should you expect to pay?
As a rough guide, established businesses typically spend somewhere between 1.5% and 4% of their turnover on their full finance function, covering everything from bookkeeping and payroll through to tax and accounting. Not all of that needs to go to your accountant, but it gives you a useful sense of scale.
And yes, you could do some or all of it yourself. But your time has a cost too. Hours spent on bookkeeping, payroll or VAT returns are hours not spent on your business. And the risk of errors, whether that’s a missed tax relief or an HMRC penalty, can end up costing significantly more than the accountancy fees you were trying to avoid.
How to find out if Fresh Clarity is right for you
If you’re looking for an accountant and you’ve read this far, you’re probably the kind of person we work well with. Someone who wants to understand their finances, not just have someone else deal with them.
The next step is simple. If you’re looking for an accountant, fill out a discovery form and tell us a bit about your business, and we’ll be in touch for a chat.
If we don’t think we’re the right match, we’ll tell you honestly and point you in the direction of someone who might be.