Have you just joined a business in London, or are you thinking of setting up shop there? If so, the first thing on your mind may be the cost of accounting services. Whether you’re looking to do basic bookkeeping tasks yourself or are considering outsourcing your accounting needs to an outside firm, this article will help you understand how much it costs to get accounting services London and what to expect when it comes to pricing.
Financial Statements
Once your books are balanced, take a look at some financial statements. (In other words, don’t try to make sense of your company’s accounting without first looking at its income statement, balance sheet and cash flow statement.) Each offers different perspectives on how healthy your business is. For example, if sales are way up but expenses are out of control, you may have a problem on your hands.
Bookkeeping
Some accounting services London charge £50/hour for bookkeeping. This includes VAT and travel costs to visit your office if necessary. They prefer working from their offices but will travel by prior arrangement. You don’t need to pay anything until you approve their work, they also provide an invoice with all details of what they did and how long it took them to do it.
Invoicing and Payment
In terms of payment, choose between charging a fixed price or billing by time spent accounting services London. At your company, you’ll typically charge a flat rate per hour for most jobs. Make sure you know how to invoice clients professionally and that you understand any local laws relating to taking payments.
Be aware that some businesses are required to collect sales tax on all transactions (this is especially common when selling products online). There may also be value-added taxes on certain services.
Annual Accounting
Accounting services London means financial record-keeping. Generally, businesses need to keep track of their income and expenses, assets and liabilities as well as a host of other details related to running a company. Generally speaking, a set of personal accounts will cost anywhere from £100 to £400 per year, depending on how complicated the accounts are.
The major purpose of keeping all these records is that they can be used for taxation and reporting purposes at a later date. Accounting services London will prepare tax returns and advise on how your business should best report its finances.
When you hire an accountant, you’ll likely want to discuss your budget with them first so that you can determine what type of service fits within your budget. Keep in mind that there are several different types of accountants including bookkeepers who only do record-keeping and auditors who assure a company’s accounts.
Auditing
It’s important to have a third party looking over your financial reports, making sure that everything is being done correctly. This way, you know that when tax season comes around, there won’t be any problems—the auditor will alert you if there are issues or mistakes.
You don’t want to have to deal with a fine from HMRC or come under audit yourself because of mistakes from your own company! Therefore it would be better to hire accounting services London.
