Traditionally accountancy firms charge Time Based Fees that take into account the complexity of the assignment and the value of the service to the client. Much of our work is charged on this basis. WH Accountancy & Advisory Limited’s hourly charge-out rates vary. They are available on request.
We can also offer up-front Agreed Fees for some assignments. The ‘agreed fee’ can be provided once we have met with you and determined what services are required and what services are wanted. Please see examples of ‘service plans’ here. Note however that service plans have a price indication stating “from $ XXX”. No two businesses are the same and all businesses have differing requirements. We provide the examples for general indication purposes only.
‘Fixed fees’ are very rare in the accountancy industry, again because the scale and nature of every business varies and so does the accounting ability of those running the business. Fixed pricing would often mean the competent and systemised client would subsidise the client whose books are in a mess. However we do have some fixed fees here.
The systems that a client has in place make a significant difference to the cost that an accountant may charge. For example at year end the accountant’s role is to check a business’ annual wage cost as stated in the financial statements and ensure it reconciles with the wage costs that have been declared to Inland Revenue for PAYE tax purposes.
If a business uses a payroll intermediary to file PAYE and pay wages, their wages ledger will generally be error free and match what was filed with IRD without further work required by the accountant. A business that uses a reliable payroll software package will generally have good records showing what was filed compared to what was paid if anomalies exist.
But a business that calculates PAYE manually, perhaps using the IRD website for calculations, and pays wages to staff without good systems in place will be more likely to have made errors and have insufficient records to help reconcile anomalies. Typically in this last case the accountant’s fee will be higher, whether agreed up front or charged later based on time incurred.