4 August 2026 · 6 min read · Bruce Thomas
It is the most common question in a first conversation and the hardest to answer honestly in one sentence, because two businesses with identical turnover can require very different amounts of work.
Rather than quote figures that would be misleading, this article explains what drives the price so you can compare quotes on a like-for-like basis.
What actually drives the fee
- The condition of your records — clean digital bookkeeping costs far less to work from than a carrier bag of receipts
- Transaction volume, rather than turnover alone
- Whether VAT applies, and which scheme you are on
- Payroll size and frequency — weekly payrolls cost more than monthly
- How many entities and returns are involved: company, directors, partnerships, property
- Sector complexity such as CIS, stock, work in progress or multiple currencies
- How much advisory work and contact you want during the year
Fixed fees versus hourly rates
Hourly billing makes clients reluctant to ring, which is precisely the wrong incentive. A fixed monthly or annual fee, agreed in advance against a defined scope, removes that friction.
The important thing is that the scope is written down. A fixed fee only protects you if both sides know what it covers and what would be extra.
Where money is often saved
The largest single lever is the quality of the underlying records. Outsourced or well-run bookkeeping usually reduces the year-end fee by more than people expect, because the accountant is not reconstructing twelve months of history.
The second lever is timing. Records delivered promptly after the year end are cheaper to work with than records delivered in month eleven, when everything becomes urgent.
Comparing quotes properly
- Ask for the scope in writing, not just a number
- Check whether Corporation Tax, the confirmation statement and directors' returns are included
- Ask whether software licences are inside or outside the fee
- Ask what a typical additional charge looks like and what triggers one
- Find out how many meetings or reviews are included each year
What we do
We price on scope, not on hours, and we set it out in writing before any work begins. If your circumstances change during the year, we discuss the fee before doing the work rather than after.
Our pricing page explains the approach in more detail, and an initial consultation will produce a specific figure for your situation.
This article is general guidance for business owners in the UK and does not amount to advice for your particular circumstances. Tax rules change and the right answer depends on your figures — please take specific advice before acting.
