A Complete Guide to Fixed-Fee Accounting Services for Small Businesses
Fixed-fee accounting services offer small businesses and contractors a complete and stress-free accounting solution at a cost-effective price.
If you’re a small business looking for company accounting services that offer real value for money and plenty of support, a fixed-fee service is likely to be far more cost-effective and convenient than paying by the hour.
In this guide, we will explain what fixed-fee accounting is and how it could benefit your SME.
What are fixed fee accountancy services?
Do I need an accountant?
Benefits of fixed-fee accounting services?
Why choose One Click’s fixed-fee accounting services?
Small business corporation tax
Five essential small business accounting tips
Get expert help and advice
When you choose a fixed-fee accounting service rather than paying an accountant by the hour, you will pay one fixed amount each month, allowing you to evenly spread the cost and stay in control of your cash flow.
Fixed-fee accounting services are usually priced in bands. The amount you pay each month will depend on the services you require and the size of your business. A fixed-fee accounting service is an affordable and reliable option for freelancers and contractors.
Whilst it is entirely possible for small businesses to look after their own accounts, most find that it is too time-consuming of a process to learn and stay on top of alongside also running their own business. Without a lot of time and commitment, you run the risk of missing deadlines and incurring penalties for late or inaccurate submissions.
When you choose a specialist small business accounting service like our fixed-fee package for small to medium-sized companies, you will receive valuable help and support tailored to your individual requirements from a team of experts who are used to working with businesses just like yours.
For most small business, the cost of hiring an accountant is nothing considering the time and stress that it is saving them and the peace of mind that it offers knowing that their accounts are accurate, and their submissions will be made on time.
Paying a fixed-fee for accounting services is an affordable, reliable and stress-free option for small businesses, and is new to the market. Here are just a few reasons why many small businesses should choose fixed-fee services instead of paying by the hour.
Easier to manage your finances – the key benefit is that by paying a fixed amount each month, you can retain better control of your finances. Knowing that the fee is fixed no matter how much help you require allows you to manage your cash flow better. When paying by the hour, it’s easy to rack up unexpectedly large bills during the months when you require extra help. Fixed-fee accounting lets you effectively spread the cost evenly throughout the year.
Receive unlimited help and advice– some fixed-fee accounting services, like ours here at One Click Accountant, offer unlimited help and advice each month. When paying by the hour, you could find yourself in a pickle if you don’t have the cash available when you require urgent help with your accounts or payroll. Fixed-fee accounting offers unlimited help and advice each month without the risk of damaging your cash flow.
Minimise stress – we know that no matter how rewarding it is to be your own boss, running a business can also be stressful at times. Choosing a fixed-fee accounting service can help to ease financial worries and give you peace of mind that there is always an expert at the end of the phone to consult on any accounting problems or concerns, without receiving an astronomical bill at the end of the month.
Value for money – when running your own business, particularly a new one, you will no doubt benefit from regular help and advice from an expert. When paying by the hour you may find yourself either paying more than you expected each month or limiting the number of queries you make to save on costs. Fixed-fee accounting services offer real value as you can seek help and advice whenever you need it without having to worry about how much it will cost.
Dedicated, personal account manager
At One Click Accountant, when you choose our fixed-fee accounting services you will receive your own dedicated account manager who you will handle your accounts and queries. Your account manager will get to know your business inside out, allowing them to offer you a friendly, efficient and personal service. Our tailored customer service is something we are particularly proud of here at OCG.
A comprehensive range of accounting services
Here at One Click, our limited company accounting service includes a comprehensive range of services, all for one competitive monthly fee with no hidden extra costs. Just some of the services that are included in the price are:
- Monthly and quarterly returns.
- Year-end accounts.
- Access to accounting software.
- Unlimited accounting help and advice.
- Payroll for director and up to 3 employees.
- Self-assessment return for director.
- Advise you on how to remain IR35
Free small business accounting software
Whilst your accountant will compile your accounts and complete your tax returns and payroll, you still need to handle day-to-day administrative tasks relating to your business accounts, like creating invoices and recording payments, keeping track of expenses and receipts, and keeping all records up to date. Our fixed-fee accountancy service provides contractors with professional software to complete these tasks quickly and efficiently, to keep their finances organised and secure.
Small business accounting software can help you compile important business financial information relating to tax, invoicing, payroll and bookkeeping. When you choose our accounting service for small companies you will receive free access to comprehensive and user-friendly accounting software
A few of the key benefits of using the free accounting software we provide with our service include:
- Organisation – professional accounting software like Free Agent and Xero will help you to easily record all information relating to your business accounts and payroll in an efficient and consistent manner. You will also have peace of mind that all your business’ financial information is stored in one place, is easy to access, and secure.
- Budgeting and forecasting – keeping your business’ financial information organised means that you can easily see where you stand financially and create accurate financial forecasts and budgets for the year ahead.
- Reduces errors – your accounting software will make all necessary calculations for you, minimising the risk of costly errors and making your figures more accurate and reliable.
- Saves you time – professional accounting software can save you lots of time as it provides you with all the tools you need in one place. As well as making calculations for you, accounting software can be used to create templates for invoices, import data, and easily search through large quantities of data for relevant information, saving you time and making your life easier.
- Secure – accounting software stores all your important and confidential financial information securely on the Cloud. Having your data stored on the Cloud means that if your computer is stolen or damaged you have peace of mind that your company finances are still safe and secure. It also helps ensure that you are complying with the new GDPR regulations which require you to take extra care that all personal data you own is secure.
Limited companies are required to pay Corporation Tax, currently at a rate of 19%, on the profits that they make.
If you are a new business, HMRC must be informed within 3 months of you commencing business that your company has been set up and will be liable for Corporation Tax.
As part of your fixed-fee accounting services, our accountants will prepare your tax return for HMRC and send you reminders about upcoming submission deadlines.
It’s very important that your Corporation Tax return is accurate and submitted on time or you risk being charged a penalty.
Hiring a limited company accountant’s help will give you peace of mind that your Corporation Tax submissions are being looked after by an expert to help you avoid costly fines.
Use these five small business accounting tips to save time and make staying in control of your business’ accounts stress-free.
Open a business bank account – if you only take on board one of these small business accounting tips then make it this one, always separate your business finances from your personal finances. Mixing up business and personal finances is just asking for a headache and can take a very long time to untangle. Different business bank accounts offer different benefits, so make sure you shop around for a solution that best meets your requirements.
Create routines and processes – rather than burying your head in the sand and putting off your business’ financial admin, create small and manageable routines and processes to help you keep on top of things rather than leaving it all until the last minute.
Get to know your software – accounting software is there to save you time and make your life easier. Taking a little time to get to know your way around the software and find out everything that it is capable of will ensure that you are using it efficiently and getting the most that you can out of it.
Keep and organise all receipts – keeping an accurate and organised record of all your expenses as you go along, will save you a big job later down the line. Collate and categorise your receipts and add a note if you think there’s any chance of you forgetting what a receipt is for. Being organised with your receipts will help to ensure that your expenses and tax deductions are correct.
Make good use of your accountant – you’re paying your accountant for a service, so don’t hesitate to pick up the phone and ask for their help and advice. Running your own business can be hectic enough, without having to also learn the intricacies of accounting and taxation. Don’t waste time trawling the internet for answers, pick up the phone and speak to your accountant.
At One Click Accountant, our accountants offer an all-inclusive, fixed-fee accountancy service tailored to contractors operating as limited companies. For a set price, you will receive unlimited support and advice from a dedicated, specialist accountant. Give us a call on 0330 124 4675 today to find out more about the accounting solutions we offer and how we can help you.