How to Compare Accountant Quotes: What to Check Beyond the Fee

Limited-company accounting and tax support starts at £85pm+, but the monthly figure alone does not tell you whether a quote represents good value.

Two accountants can quote very different fees for what appears to be the same service. In reality, one may be including VAT returns, payroll and year-end work, while the other is pricing only a narrow compliance package. Alternatively, the more expensive quote may include services your business does not currently need.

When you compare accountant services, the important document is not the headline price. It is the written scope behind it.

A monthly fee is not comparable until you know what it covers

Two firms can quote noticeably different monthly fees for apparently similar work, so the price is only a starting point. Where a figure is needed, limited-company accounting and tax support with the firms we introduce starts at £85pm+. Before comparing one quote with another, establish what the accountant has assumed about your company.

For a limited company or growing SME, this may include:

• Annual accounts
• Corporation Tax calculations and filing
• Companies House filings
• VAT returns
• Bookkeeping
• Payroll
• Management accounts
• Tax planning
• Director support
• Accounting software
• General queries and meetings

The same label can mean different things from one firm to another. “Company accounts” might mean the preparation of year-end accounts only. It might not include bookkeeping, VAT, payroll or Companies House submissions.

Similarly, “full accounting support” sounds comprehensive but does not explain how much work is covered, how often it is provided or what happens when your business becomes more complex.

A useful quote should allow you to answer a simple question:

If I accept this fee, what work will the accountant actually carry out for my company?

Look for a written scope, not a broad promise

The quote should clearly separate three areas:

1. Services included in the regular fee
2. Services available at an additional charge
3. Events that may cause the fee to change

The first area should describe the actual deliverables. For example, it should explain whether annual accounts are prepared and filed, whether Corporation Tax work is included, and whether the service covers one company for one accounting period.

It should also state the frequency and limits of recurring work. If payroll is included, does the fee cover one payroll run each month or additional runs when employees are paid outside the normal schedule? If VAT is included, how many returns are covered during the year?

The second area should list work that is available but not part of the basic fee. This is not necessarily a problem. Many accountants price specialist or unpredictable work separately. The problem arises when the exclusions are unclear.

The third area should explain what triggers an extra charge. This could include:

• A rise in transaction volumes
• Additional employees
• More than one company
• Late or incomplete records
• A change in VAT scheme
• Additional meetings or reports
• HMRC correspondence
• A change in the company’s structure

If the quote does not explain these points, ask for clarification before treating it as a fixed price.

Exclusions that can change the real cost

Certain services are often left out of an attractive headline fee. They are particularly important for growing companies because they may become necessary during the year.

Additional sets of accounts

The quoted fee may apply to one limited company only. If you operate a group, have a second trading company or need accounts for another entity, additional sets of accounts may be charged separately.

Ask whether the quote covers just the company named in the proposal and what the cost would be if another company needs support later.

VAT returns

VAT returns may be excluded entirely or priced as an add-on. A quote may also cover preparation and filing but not VAT registration, scheme advice, corrections or communication with HMRC.

If your company is VAT-registered, make sure the quote states:

• Whether VAT returns are included
• How often they will be prepared
• Whether Making Tax Digital work is covered
• What happens if a return needs correcting
• Whether VAT advice is part of the service

Payroll runs

Payroll pricing can depend on the number of employees and the number of runs required. A director-only payroll is not necessarily comparable with a service covering several employees, pension administration, starters, leavers and irregular payments.

Ask whether the quote covers your current payroll arrangement and what happens if your team grows.

Bookkeeping catch-up

Some accountants assume that your records are complete and ready to use. If your bookkeeping is behind, unreconciled or spread across spreadsheets, bringing it up to date may be a separate project.

This is one of the most important questions to ask when changing accountants:

Does your quote include bringing my existing records up to date, or is that charged separately?

The answer can make a substantial difference to the first invoice.

Companies House filings

Annual accounts and Companies House filings are related, but they are not always priced together. The confirmation statement may be separate from the accounts engagement.

Confirm whether the quote includes the filings your company needs and whether any official filing charges are handled separately.

Advisory time

Routine questions may be included, while tax planning, cash-flow forecasting, dividend advice, business restructuring or finance meetings may be charged separately.

Ask what “ongoing support” means in practice. Does it include email questions? Are calls included? Is there a limit on meetings or the time spent discussing an issue?

Year-end work

Some quotes cover preparation of year-end accounts and the Corporation Tax return. Others may treat tax planning, accounts adjustments, director loan reviews or explanations of the final figures as separate work.

Ask what happens between the end of your accounting period and the final submission. This is where a narrow quote may differ sharply from a more comprehensive one.

Check whether VAT is included in the quote

A quote should state clearly whether it is VAT-inclusive or whether VAT will be added.

This matters when comparing a quote from a VAT-registered firm with one that is presented as a total price. If one figure includes VAT and the other excludes it, comparing the monthly numbers directly gives you the wrong impression.

Ask each accountant to confirm:

• Whether the quoted monthly fee includes VAT
• Whether one-off setup or catch-up charges also include VAT
• Whether software costs are included or treated separately
• What the total expected cost will be over a full year

If your company cannot recover the VAT on professional fees, the VAT-inclusive total is the figure that matters to your budget. Even where VAT can be reclaimed, you still need to understand the amount that will appear on each invoice.

When two quotes differ sharply

A large difference does not automatically mean that one accountant is overcharging or that the cheapest quote is the best choice.

The lower quote may be under-scoping the work. Perhaps it covers annual accounts but excludes bookkeeping, VAT, payroll and advice. It may also assume that your records are already complete.

The higher quote may be bundling services you do not need. For example, it could include monthly bookkeeping, regular management reports and frequent advisory meetings when your company only needs annual accounts and Corporation Tax support.

Ask both accountants to explain the difference in plain English:

• Which services are included in your quote that may be excluded elsewhere?
• Which assumptions have you made about my records and transaction levels?
• Is the cheaper quote based on fewer services or a simpler company?
• Is the higher quote including work that I have not requested?
• What would be removed if I wanted a more focused package?
• What work would be added if my business grew?

The goal is not to force every accountant into the same price. It is to understand whether the difference reflects a genuine difference in scope.

Questions that reveal the real cost

Before accepting a quote, ask for direct answers to these questions:

• What exactly is included in the regular fee?
• Which services are expressly excluded?
• What would cause the fee to increase?
• Is bookkeeping included, and is there a limit?
• Are VAT returns included?
• How many payroll runs and employees are covered?
• Is catch-up bookkeeping charged separately?
• Are Companies House filings included?
• Is year-end work fully covered?
• Are meetings, calls and email queries included?
• Does the fee include VAT?
• Are software subscriptions included?
• Will I be told before additional chargeable work begins?
• How often is the fee reviewed?
• What happens if my business structure changes?

The answers should be reflected in the engagement letter or written scope. If an important answer is given verbally, ask for it to be added to the quote.

Check the firm as well as the fee

Price and scope are only part of the decision. You should also understand who you are appointing and what safeguards are in place.

We check the credentials and regulatory standing of our accountants before we introduce them. Every accountant we work with is vetted for their qualifications, membership of a registered body for public practice, and AML registration, and your details are shared only with a vetted few who fit your brief. Always confirm a firm's registration, supervision and cover directly before you appoint them.

Accountant Search is a curated directory and digital matchmaking/referral platform, not an accountancy practice. We help limited companies and growing SMEs describe the support they need before considering relevant accountant matches.

If you have two or three quotes in front of you, our match brief can help you explain your company, the services you need and the areas where you want clearer support. You can also explore limited-company accounting support.

The best quote is not necessarily the lowest monthly fee. It is the quote that clearly states what you receive, what may cost extra and how the service will adapt as your company grows.

Need help with a personal tax return? Self Assessment support is £300 inc VAT per return through the SA registration form.