From past and bitter experience we know that one of the biggest bones of contention between an accountant and his or her client is the fee.
It has been traditional for accountants and other professional people to base their fees on the time spent on a job multiplied by an hourly rate, usually with a minimum charge for 10 or 15 minutes. Whilst this has the advantage of total transparency, the final bill often comes as a shock to the client and can sour or destroy an otherwise good working relationship. Far too often we have heard comments like: "We were chatting on the 'phone, not really talking about work, but I still got charged 50 quid....." or "I really need to discuss this with my accountant, but he'll charge me for the privilege...I'll take the risk and not call him.". An unexpectedly large bill can cause problems for the accountant in recovering his or her fee once the work has been completed: no accountant wants to spend time arguing over a fee with a client - it's lost time for the accountant and usually ends with losing the client as well!
To avoid these problems Bambury & Co charges for professional work on a fixed fee basis. Under this basis the fee is agreed between ourselves and a client before any work is undertaken. Where the fee is for work of an ongoing nature, such as the preparation of accounts each year, then we would ask the client to complete a standing order so that the agreed fee is paid by four quarterly instalments. Where work is immediate and likely to be of a substantial nature, such as the preparation of a business plan or tax investigation work, then we would ask for 50% of the agreed fee on commencement of the work with the balance on completion. Where work is immediate but of a more routine nature, such as the preparation of a tax return, then we ask for full payment on signing the Engagement Letter.
We can accept payment by cheque, by bank transfer if using Internet banking or by credit/debit card.
Every client is different, and many accountants would argue it is difficult to take a "one-fee-fits-all" approach. However, based on our past experience the following examples can be used as an indication of where we would be looking to agree a fee for accountancy or taxation services before commencing work. Please note that we do not at the moment carry out statutory audits.
Please see the appropriate pages for the cost of specialised services such as Wills & Probate, Company Formations, Company Secretary Service and Payroll Service.
Consultancy work is usually of a "one-off" nature and the agreed fee will be based on our estimate of the time involved in completing the work and will reflect the importance to the client and the necessary skill and expertise needed to complete the work.
Where we carry out work for a client in an area not covered by a fixed fee or in those regrettable situations where we have to take up time arguing with a client over the recovery of fees, costs or other monies, then we reserve the right to charge our "day rate", which is currently £100 an hour.
In accordance with best practice as laid down by the Institute of Chartered Accountants in England and Wales, every client will be sent an Engagement Letter before we commence any work. This letter sets out the scope of the work we will be carrying out for the client, the fee agreed between the client and ourselves and what the client can reasonably expect from us.
All fees are subject to VAT at the applicable rate.
Bambury & Co carries full professional indemnity insurance.