Our accountant is raising their fees based on our revenue figures. They have a broad pricing model based on annual revenue, that doesn't take into consideration any other factor (e.g. number of transactions, complexity..etc). Our revenue figures increased during the year and hence they are revising the contract so we'd pay three times as much as what we paid at the beginning of the year. We are looking for quotations from other accounting firms, but we're faced with the question: what's a good price? Since accountants charge monthly here in Ireland, and we barely interact monthly (we do our own book keeping), it's hard for us to evaluate their worth based on the amount of work done since most of it will be done at the end of the year.

Now that you have some experience under your belt, you know what you like and don't like about a relationship with an accountant. You also know more questions to ask before you start your next engagement, such as:
* What do you base your fees on?
* What do you provide on a monthly basis for your standard fee? On a quarterly basis? On an annual basis?
* How often do we review the contract?
* How much extra is doing the book keeping?
* How do you help ease the money management pains of running my business?
Once you've found an accountant who answers such questions to your satisfaction and determined what rate you'll be paying monthly, assess the time the accountant will work on your business, calculate the hourly and compare that to your hourly. If you're comfortable with that difference and with the fact that a professional will be overseeing your finances, then it makes sense to sign on with him or her.
If you wish to discuss, send me a PM through Clarity for 15 free minutes.

Answered 2 years ago

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