Accounts for Turnover in excess of 1.2mil

shadeofblue

Hi Guys,

It’s been a few months since I’ve had the time to visit this forum- you've been missed!!

Anyhow I wanted some assistance arriving at a 'reasonable' fee for a new potential client.

Two branch pharmacy business unincorporated - first year of trading
Annual turnover is around 1.2 mil’ (NHS prescriptions and private prescriptions other).
No general bookkeeping has been done manual or software!

I would be doing accounts for first year (short year of 5 months) to include a self assesment

A. Could you shoot at me what you would charge in this instance?

B. How about if the business became incorporated, what would you charge for a full set of year end accounts Inc. CT600 & CH return etc.?

Your advice would be appreciated

burg

There are several methods of quoting and it depends on how you wish to do things. It's harder not having seen the client and the records.

I would suggest possibly quoting an hourly rate to sort the bookkeeping to a basic TB. Then a fixed fee for the year end work. Year end wise I would possibly be looking at something in the region of £1,500 - £2,000. As for incorporated possibly another £500 - £1,000. As the first year is only five months then I may look to reduce the fee slightly.

You do always have the option of working out roughly how many hours you think it would take and multiply that by your appropriate charge out rate and quote a full fixed fee.

Most of my larger businesses have come from other accountants and I have therefore had a guide to go on. I am confident in my quoting for smaller businesses (say up to £500k TO) but above that I'm not so sure.

Monsoon

I agree with Ian here.

Definitely charge hourly for bookkeeping until you have an idea of what's involved - I don't think a fixed fee is possible for bk in this case. His range of y/e fees is about right too.

Also, with a turnover that high, I would have thought a limited vehicle would be preferable anyway? I'd want to explore that pretty quickly if it was me.

shadeofblue

Thanks for both of your sound advice, had a good chat with Ian yesterday and my mind is now less foggy. Once I heard est annual turnover it fogged my mind on the quoting aspect (which wouldn't have a problem before doing) . As it would be my largest by far !!
Thanks again and hope to network with you both again soon.

deanshepherd

"1.2m turnover and no bookkeeping to date.. wow!

Good luck with that one!

Monsoon

deanshepherd wrote: »

"1.2m turnover and no bookkeeping to date.. wow!

Good luck with that one!

You make me laugh

And yes, you're quite right.

Let us know how it goes!

shadeofblue

In reply to Dean

I would be doing accounts for first year (short year of 5 months) to include a self assesment. 500k ..1.2 milli is an annual est
Update all is well and fee agreed will be a big project but costed well

Monsoon

shadeofblue wrote: »

Update all is well and fee agreed will be a big project but costed well

Awesome! Good luck with it