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Don’t make fees a false economy

by Daniel Ruthven on May 7, 2014 No comments

Fees

Over the past decade the Internet has changed the way in which we shop. For everyday purchases the internet provides an open and transparent marketplace, making it the obvious choice for consumers, however, should you use the same process to procure your tax and accounting services?

We now have a deluge of internet based Accountants offering online services enticing new clients with competitive fees; however, should you be satisfied with this basic service or should you be looking for an accountancy practice which offers responsive solutions, tailored to your circumstances?

The answer may lay in some of these uninformed statements.

Accountants are all the same.

When Directors engage an accountant based solely on fee, this would indicate that they actually do believe accountants are all the same and the service provided is in some way homogenous.

This is obviously not true. Confusion seems to arise from the fact that the filing requirements for most limited companies are all the same.

Companies are required by law to complete Annual Returns, Corporation Tax Returns, file accounts, etc. However it is the personal planning, advice and work performed around these reported numbers which distinguishes F9 from a basic online accountant which provides little more than cloud software access. These solutions are simply not capable of ensuring you are tax efficient.

An accountants professional service by its very nature must be bespoke and tailored to the individual circumstance, this is the service we provide to all of our clients.

A cheaper accounting fee is obviously better for my Company.

A cheaper accounting fee will obviously give you a lower accounting expense in the company accounts, however, this is a false economy as it may also result in a greater tax liability, leading to a lower profit overall. This may also impact your personal tax liabilities.

In order to lower your HMRC liabilities it is essential for an accountant to fully understand your ever-changing circumstances, this allows greater scope around the essential tax planning and structuring services essential in making you and your company tax-efficient.

Consultancy is where an accountant can add the most value and reduce your tax liabilities. It is the quality of this bespoke advice that will provide the best return on your fee expenditure. Contact us to find out more about our business and personal tax services.

I have never met my accountant. I don’t think this is an issue.

The relationship between accountant and client is important for both parties.

The more an accountant understands a client the greater the opportunities for planning and structuring. This will not only help with reducing tax liabilities but can also assist with securing a mortgage, receiving government grants and benefits, funding strategies and option around exiting a company.

The relationship a client should have with his accountant should be one of trust and approachability. Clients should have confidence that all current engagements are being managed to optimal efficiency, but in addition to this they should know their accountant is available to discuss any future projects.

These relationships are not formed online, or indeed over the telephone. They require a face-to-face meeting to initiate and regular correspondence and communication to nurture and this is why we concentrate our efforts on the close personal attention that is so valued by our clients.

Time for a change?

F9 provides tax, accounting and payroll services for Limitied companies from just £100 per month. We are based in Canary Wharf, London and Brentwood, Essex. Please contact us if you would like to meet up to discuss your situation and requirements and find out what we can do for you.

e. TheTeam@F9consulting.co.uk
t. +44 207 712 1684

Daniel RuthvenDon’t make fees a false economy

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