How much does it cost to do annual accounts?

Providing annual accounts is a mandatory requirement for limited companies in the UK.

In most cases, small to medium-sized businesses (SMEs) will usually commission professional accounting services to ensure they meet their statutory obligations.

The cost of preparing and filing annual accounts for a UK limited company can vary considerably.

This will depend on several factors, such as the size and complexity of the business, and the type of services the business requires.

Understanding how much annual accounts should cost in the UK companies is essential, helping you to budget and obtain value for money.

What factors influence the cost of annual accounts in the UK?

There are several factors that influence the overall cost of annual account services in the UK.

These include:

The size and complexity of the business

The complexity of a business, its size, and the company’s financial structure will all have a significant impact on fees a company will pay for annual account services.

Small businesses with a simple structure, minimal assets, and a limited number of transactions will have straightforward accounts. As a result, the cost of annual accounts for these companies is likely to be lower.

Larger companies with more complex financial arrangements, like those with multiple revenue streams and a large number of transactions, will incur extra costs for preparing their annual accounts.

Trading status

A dormant company that isn’t trading will have accounts that are simpler and require less work. Active companies, even those with just a few annual transactions, will need to file more detailed accounts, increasing the cost.

Additional services

Accountants may offer a range of services beyond preparing and filing your annual accounts.

This might include bookkeeping throughout the year, payroll management, and VAT returns.

They may also provide strategic financial advice and reporting to help your business achieve its financial goals.

The more services you require, the more accounting services will cost.

Many companies when starting out opt for basic accounting services.

They may then commission further services as the company grows and their finances become more complex.

How much should annual accounts cost in the UK per month?

Understanding how much annual accounts should cost UK companies of different sizes can ensure you’re getting the best value for your business.

Many will opt to pay for their accountancy services on a monthly basis for easier budgeting.

For small businesses, they may pay less than £100 a month to cover basics like preparing financial statements, submitting accounts to Companies House, and filing Corporation Tax returns.

These costs can increase substantially as the size of the business does, or if additional services like payroll or VAT returns need to be factored in.

Professional accountancy companies will be able to provide comprehensive quotes for your business, based on your precise requirements.

Cost-effective annual account services from DAAFL

At DAAFL, our team of financial experts provides a range of accounting services for limited companies, ensuring they meet their statutory obligations, reduce their liabilities, and optimise their financial record keeping.

Our bespoke accounting services ensure you only pay for what you need, helping to keep your monthly accounting costs down, while ensuring your annual accounts are in order.

We support your overall business objectives, allowing you more time for other business activities.

Want to learn more about limited company accounting and the value it can bring to your business?