How Do I Know If My Bedford Accountant Is Charging a Fair Price?

At Towerstone we offer accountancy services in Bedford for people building businesses and managing property income. We have written an article about How do I know if my Bedford accountant is charging a fair price? to help you compare costs properly and know what you should get for the fee before you commit..

This is one of the most common questions I get asked and in my opinion it is one of the hardest for business owners to answer confidently. Accountancy fees are rarely displayed clearly in the way other services are. There is no standard price list no obvious comparison tool and no simple way to know whether you are getting value for money or quietly overpaying.

From experience I can tell you that many people in Bedford and across the UK either stay with an accountant for years without questioning the fee or switch purely because someone else quoted less. Both approaches can lead to problems. Paying too much hurts cash flow especially in early years. Paying too little often means poor service missed advice or costly mistakes later on.

In this article I want to walk through how accountancy pricing really works what affects the cost what fair pricing looks like in practice and how you can judge whether your current accountant is charging a reasonable fee for what you actually receive. I will also share real world examples common red flags and practical steps you can take if you are unsure.

By the end you should feel far more confident about assessing value not just price and deciding whether your accountant is right for you.

Why Accountancy Fees Feel So Unclear

One of the reasons this topic causes confusion is that accountancy is not a single service. Two businesses both paying an accountant £150 per month may be receiving completely different levels of support.

In my experience most frustration around fees comes from unclear expectations rather than outright overcharging. People think they are paying for one thing and later discover they are paying for something else.

Unlike buying a product you cannot easily see the output. Much of an accountant’s value lies in what they prevent rather than what they produce. Avoided penalties tax savings peace of mind and proactive advice do not show up neatly on an invoice.

That said fair pricing does exist and there are clear ways to judge it.

What Does an Accountant Actually Charge For?

Before you can assess whether a fee is fair you need to understand what you are being charged for.

Accountancy fees typically cover some or all of the following areas.

Compliance Work

This includes statutory obligations such as:

• Annual accounts

• Corporation tax returns

• Self Assessment returns

• Confirmation statements if included

• VAT returns

• Payroll filings

Compliance work is non negotiable. If it is done incorrectly or late there are penalties.

Bookkeeping Oversight or Support

Some accountants do full bookkeeping. Others review records you prepare. Others expect everything to be done correctly before they see it.

The more involved the accountant is in your bookkeeping the higher the fee should reasonably be.

Advice and Planning

This is where value often lies and also where pricing differs most.

Advice can include:

• Tax planning

• Dividend and salary planning

• VAT scheme advice

• Cash flow guidance

• Business structure advice

• Support with growth or exit planning

Some accountants include this proactively. Others only provide advice if you ask and may charge separately.

Communication and Availability

Access costs money. An accountant who answers emails quickly speaks to you regularly and proactively flags issues is providing more than one who files accounts once a year and disappears.

This difference matters.

The Biggest Factors That Affect Accountancy Fees

There is no fair price in isolation. Fees should reflect complexity workload risk and level of service. In my experience these are the main drivers.

Business Structure

A sole trader will usually pay less than a limited company. A limited company with multiple directors shareholders or group structures will cost more.

For example:

• Sole trader with simple income streams

• Single director limited company

• Company with payroll VAT and multiple shareholders

• Property company with multiple properties

• Trading company with complex VAT

Each step up adds time responsibility and risk for the accountant.

Volume of Transactions

More transactions mean more work. This is often underestimated by clients.

A business with:

• 20 transactions per month

• Clean bank feeds

• Simple expenses

Is very different from one with:

• Hundreds of transactions

• Cash payments

• Poor record keeping

• Mixed personal and business spending

In practice transaction volume is one of the biggest cost drivers.

Quality of Records

This is a big one and something I see daily.

If your records are:

• Up to date

• Reconciled

• Categorised correctly

• Supported by receipts

Then fees stay reasonable.

If your records are:

• Months behind

• Full of errors

• Missing information

• Mixed with personal spending

Then your accountant is doing remedial work and that costs more.

Level of Support You Expect

Some clients want minimal interaction. Others want regular calls advice and reassurance.

Neither is wrong but the price should reflect it.

An accountant who effectively acts as a finance director or business adviser will naturally charge more than one providing basic compliance.

Risk and Responsibility

Accountants carry professional risk. Certain clients carry more risk than others.

For example:

• High turnover businesses

• VAT registered businesses

• Businesses with complex tax positions

• Clients with previous compliance issues

Higher risk requires more checks more documentation and more professional judgement.

What Is a Fair Price in Real Terms?

While I am cautious about quoting exact figures because every case differs there are broad ranges that can help you sense check.

From what I see in practice in Bedford and similar areas:

• Sole traders often pay anywhere from £300 to £1,200 per year depending on complexity

• Single director limited companies often pay £1,000 to £2,000 per year

• Companies with VAT payroll and advice often fall between £1,800 and £3,500 per year

• More complex SMEs can go well beyond this

If you are significantly outside these ranges it does not automatically mean the fee is unfair but it should prompt questions.

How to Judge Value Rather Than Price

In my opinion the better question is not “is my accountant cheap or expensive” but “am I getting value for what I pay”.

Here are the questions I encourage clients to ask themselves.

Do I Understand Exactly What Is Included?

If you cannot clearly list what your fee covers then that is a problem.

You should know:

• Which returns are included

• Whether VAT is included

• Whether payroll is included

• Whether advice is included

• Whether ad hoc queries are included

If this is unclear ask for a written breakdown.

Do I Get Proactive Advice?

This is a key value marker.

Does your accountant:

• Flag issues before they become problems

• Warn you about upcoming tax bills

• Suggest tax saving opportunities

• Ask about changes in your business

Or do they simply react when you contact them?

Proactive advice often justifies higher fees.

Do I Feel Comfortable Asking Questions?

If you avoid contacting your accountant because you worry about being charged for every email that is not a healthy relationship.

In my experience good accountants encourage questions because they prevent bigger issues later.

Are Things Done On Time Without Chasing?

Timeliness is part of value.

If you are constantly chasing for accounts VAT returns or responses that erodes value regardless of price.

Have They Helped Me Save Money or Avoid Problems?

This is the most important question.

Has your accountant:

• Reduced your tax bill legally

• Helped you avoid penalties

• Helped you structure things better

• Given clarity when things felt uncertain

If the answer is yes then the fee is often justified.

Common Signs You May Be Overpaying

Overcharging does happen and it is reasonable to question it.

From experience red flags include:

• Fees rising every year without explanation

• Additional charges for basic queries

• No improvement in service despite higher fees

• Minimal contact beyond annual filings

• Errors that you have to correct yourself

• Lack of clarity on what you are paying for

If you feel uncomfortable or resentful about the fee it is worth addressing.

Common Signs You May Be Underpaying

This is talked about less but is just as important.

If your accountant is very cheap you may notice:

• Slow responses

• Rushed work

• Minimal advice

• High staff turnover

• You only speak to junior staff

• Little interest in your business

Low fees often mean high volume and limited time per client.

Real World Example: Paying Less but Losing More

I worked with a business owner who switched to a cheaper accountant to save £600 per year. Within a year they missed VAT planning opportunities and paid significantly more tax than necessary. The saving was false economy.

In my opinion this is common. The cheapest option is rarely the most cost effective long term.

Real World Example: Paying More for Peace of Mind

Another client paid more than average but received regular check ins proactive tax planning and clear communication. When HMRC raised an enquiry it was handled smoothly with no stress.

The fee felt expensive on paper but invaluable in reality.

What To Do If You Are Unsure About Your Fee

If you are questioning your accountant’s fee there are sensible steps you can take.

Ask for a Fee Review

A good accountant will explain how the fee is calculated and what you are paying for. This conversation alone often clears things up.

Ask for a Scope of Services Document

This should outline exactly what is included. If you are paying for things you do not need adjustments can often be made.

Compare Like for Like Quotes

If you get other quotes make sure you compare the same services. A lower quote may exclude VAT payroll advice or support.

Review Your Own Records

Improving your bookkeeping often reduces fees. Better records mean less time spent fixing issues.

Decide What Level of Support You Actually Want

If you want basic compliance say so. If you want advice and involvement expect to pay more.

Is It Fair to Negotiate Accountancy Fees?

Yes within reason.

From experience most accountants are open to discussion especially if your business circumstances have changed.

What does not work is demanding lower fees without adjusting expectations.

Fair negotiation is about aligning service with cost not simply pushing the price down.

When Changing Accountants Makes Sense

Sometimes the issue is not the fee but the fit.

It may be time to change if:

• You no longer trust the advice

• Communication is poor

• You have outgrown their expertise

• You feel like a number not a client

Fees are only one part of that decision.

The key takeaway

In my opinion a fair accountancy fee is one that feels proportionate to the complexity of your affairs the level of support you receive and the peace of mind it gives you.

If you understand what you are paying for feel supported and see tangible value then the fee is likely fair even if it is not the cheapest.

If you feel confused frustrated or unsupported then even a low fee may be poor value.

The key is transparency. Ask questions understand the scope and assess the relationship honestly.

If you are in Bedford and unsure whether your accountant’s fee is fair the best first step is simply to have an open conversation. A professional accountant will welcome it.

To continue reading you may also find How much does a small business accountant cost in Bedford? and Is it cheaper to use an online accountant or a local Bedford one? useful. For a full overview visit our Bedford Accounting Hub.