How Much Should an Accountant Cost for a Small Business?

One of the first questions most business owners ask is: “How much should an accountant cost?”
The usual answer is: “It depends”.

Which is true, but not particularly helpful when you’re trying to make a decision. In reality, there are some rough ranges.

A sole trader might pay anywhere from £300 to £1,000 per year, while a limited company will often fall somewhere between £800 and £3,000+, depending on the level of support involved.

Ongoing bookkeeping, VAT returns, and monthly support can range from £50 to £300+ per month.

The variation usually comes down less to business size and more to how the accountant actually works. At the lower end, you’re normally paying for basic compliance:

• accounts prepared
• tax returns filed
• everything submitted correctly

It does the job, but it’s usually reactive and happens after the fact.

As fees increase, so does the level of involvement. Things stay more organised throughout the year, bookkeeping is kept up to date, and you’re not left sorting everything out at year end. Beyond that, the value shifts again.

The focus moves from simply filing numbers to understanding how the business actually operates:

• where cash flow problems sit
• where inefficiencies build up
• what’s affecting profitability
• what could be improved operationally

This is where many businesses get it wrong.

It’s natural to try and keep costs down, especially early on, but cheaper accountancy services are usually built on volume. Less time, less involvement, and very little input beyond staying compliant.

On paper everything looks fine, but the same operational and financial problems often continue underneath. That’s usually where the real cost sits - not in the accountant’s fee itself, but in what’s being missed.

• A basic accountant will keep you compliant.
• A better one will help keep the business organised.
• A really good one will help the business run more effectively.

​There isn’t one “correct” price, but if the fee feels extremely cheap, it’s worth asking how much support and visibility you’re actually getting in return.

Now you know the expected cost, what should your accountant be doing for you?