How Much Does a Small Business Accountant Cost in Bedford?

At Towerstone we provide accountancy services in Bedford for people who want straight answers and reliable support. We have written an article about How much does a small business accountant cost in Bedford? to help you get a clear view of typical pricing and what changes the cost from business to business.

When you start looking for an accountant for your small business in Bedford you will quickly find that prices vary quite a bit. That is normal and it reflects the range of services on offer the experience of the accountant and how much support you need.

In broad terms a small business accountant’s fees in Bedford can range from modest monthly retainers for basic compliance work to higher fees for more complex advisory services. In my experience many small businesses end up paying somewhere between £80 and £250 per hour depending on the task but there are also fixed fees that often work out more cost effective.

The purpose of this article is to explain what drives accounting costs in Bedford how fees are typically structured what you should budget for and how to get good value without paying over the odds.

Why accounting costs vary so much

Before we look at specific numbers it helps to understand why accountants charge what they do. There are several factors that influence cost.

Level of expertise
A newly qualified accountant will charge less than someone with many years of experience or a specialist qualification. That is not always better or worse but it does affect price.

Services required
Bookkeeping payroll VAT returns year end accounts corporation tax returns and management accounts are all different types of work. Some tasks take more time and skill.

Business complexity
A company with several directors rental income stock payroll and international transactions takes more effort than a sole trader with simple income.

Frequency of support
Monthly bookkeeping and regular advice will cost more than a one off set of year end accounts.

Software and technology
If you use cloud accounting software like Xero QuickBooks or FreeAgent and your accountant supports it that can reduce time and cost. Some accountants include software setup and training within their fees.

Typical pricing structures in Bedford

Accountants generally use three main ways of charging.

1. Hourly rates

Many accountants charge by the hour. In Bedford for small business work I typically see hourly rates fall into these bands:

£80 to £120 per hour for a junior accountant or basic bookkeeping support
£120 to £180 per hour for a qualified accountant handling VAT returns year end accounts and routine compliance
£180 to £250 per hour for senior accountants or specialists providing tax planning business advisory and complex reporting

Hourly rates are transparent and fair if you only need occasional help or project work. The downside is you do not always know the final bill before the work is done.

2. Fixed monthly retainers

A growing number of small businesses prefer a fixed monthly fee. This is where you pay a set amount each month for a defined set of services.

Typical small business retainers in Bedford might be:

£120 to £250 per month for basic bookkeeping VAT returns and quarterly check ins
£250 to £500 per month for bookkeeping payroll VAT returns management accounts and regular advice
£500+ per month for more proactive support with budgets forecasting and tax planning

Fixed retainers give certainty over cost and encourage regular communication which many business owners value. They also allow accountants to know your business well and add more value.

3. Fixed fees for specific tasks

Some work is charged as a one off job. Common examples are:

Preparation of year end statutory accounts for a small limited company
Filing corporation tax returns
Setting up cloud accounting software
Preparing a business plan or cash flow forecast

These fixed fees often range quite widely. For example preparing a set of small company accounts and corporation tax return might cost anywhere from £500 to £1,500 depending on complexity. Setting up software might be £200 to £600.

Getting these fixed prices in writing before you start helps you avoid surprises.

What you can expect to pay for specific services

Here are some typical ranges based on what most small businesses need.

Bookkeeping
Basic monthly bookkeeping using cloud software can cost £100 to £300 per month. If your books are messy or there is catch up work to do expect to pay more.

VAT returns
Preparing and filing a quarterly VAT return is often between £60 and £150 per return. Some accountants include this within a monthly retainer.

Payroll
Processing a simple payroll might be £20 to £50 per employee per month. If you have automatic enrolment pension reporting that adds to the cost.

Annual accounts and corporation tax
For a small limited company with straightforward accounts I see fees of £600 to £1,200 for accounts and tax returns. More complex businesses might be £1,500 or higher.

Self Assessment tax returns
Completing a personal Self Assessment return is often between £150 and £400 depending on complexity.

These ranges are indicative and based on what I see in practice. Always get quotes tailored to your business situation.

How to choose the right accountant for your budget

Price is important but it should not be the only factor. An accountant who charges slightly more but gets things right first time often saves you money in the long run.

Here are a few practical tips.

Define what you need
Before you ask for quotes write down what tasks you want help with and how often. This makes comparisons fairer.

Ask for fixed fees where possible
This gives you certainty and avoids hourly billing surprises.

Check experience relevant to your business
An accountant who understands your sector will work more efficiently and give better advice.

Look for someone who uses modern software
Cloud accounting can reduce time and improve visibility for you and the accountant.

Meet or speak before you commit
A good working relationship matters. Communication style availability and responsiveness are part of the value you receive.

Value for money is not always cheapest price

I have worked with many small business owners who initially chose the cheapest accountant they could find only to regret it later. Often the work was slow incomplete or required corrections.

On the other hand paying a higher fee for proactive advice can increase profitability by finding tax reliefs improving cash flow and preventing costly mistakes.

In my experience the best outcome is a balance between cost efficiency and quality service.

How to reduce accounting costs without losing quality

If you are concerned about fees here are some practical ways to keep costs reasonable.

Keep your records up to date
The more organised your bookkeeping the less time your accountant spends fixing problems.

Use cloud accounting software
Software like Xero QuickBooks or FreeAgent makes data entry easier and reduces time spent on routine tasks.

Be clear about priorities
If you only need compliance work ask for a quote just for those services. Advisory support can be added later.

Communicate clearly and promptly
Responding to queries and providing documents in a timely way keeps work on track.

Hidden or additional costs to watch out for

Some fees are not obvious at first glance. Be aware of the following.

Disbursements or admin charges
Some firms add small charges for printing postage or filing.

Late submission penalties
If your records are late HMRC charges can be costly. A good accountant will help you avoid these.

Software subscription costs
Cloud accounting usually has a monthly subscription. Some accountants include it some do not.

Ask for a full breakdown of fees so you can compare quotes fairly.

What other small businesses in Bedford are paying

In my conversations with Bedford business owners I hear a common theme. Those who pay around £150 to £250 a month for a good accountant feel it is money well spent because it reduces stress and gives them confidence in their finances.

Businesses with very simple affairs sometimes pay less by using an accountant for annual work only. Others who want active tax planning budgeting and regular support budget more.

There is no one size fits all but most small businesses find a range that works for them within the figures I have outlined.

Questions to ask an accountant before you hire them

When you talk to a prospective accountant here are useful questions to help you decide.

What exactly is included in your fee
Do you charge extra for phone calls or meetings
How often will you review my accounts with me
Can you help with tax planning not just compliance
Do you use cloud accounting software and will you train me how to use it

An open discussion about these points will save you misunderstandings later.

Summary

A small business accountant in Bedford can cost anywhere from modest monthly retainers to higher rates for specialist support. Typical hourly rates range from around £80 to £250. Fixed monthly fees often range from £120 to £500 or more depending on scope. Specific tasks like accounts and tax returns usually have set fees.

The key to good value is matching the accountant’s services to your business needs and getting clear written terms upfront.

Good accounting support is not just a cost it is an investment in your business’s financial health.

To continue reading you may also find How do I know if my Bedford accountant is charging a fair price? and Is it cheaper to use an online accountant or a local Bedford one? useful. For a full overview visit our Bedford Accounting Hub.