How Much Is Too Much (or Too Little) to Pay Your Accountant?

When it comes to paying for professional advice, many business owners are left wondering: Am I paying too much for my accountant? Or worse… Am I paying too little and getting what I pay for?

Let’s dive into what’s reasonable, what’s risky and what’s actually worth investing in when it comes to accounting support, especially if you run a creative business, work in the media or earn your living from content creation.

How Much Is Too Little?

Let’s start here, because let’s face it... we all love a bargain. But when it comes to tax and compliance, paying peanuts can end up costing you a fortune.

Here are some red flags you’re paying too little:

🚩 1. You're chasing them more than they chase you

If your accountant only gets in touch once a year (and even then it’s a last-minute scramble) you’re not getting the support you need. And if you have to remind them of deadlines or updates, something’s not right.

🚩 2. They're filing your return but offering no advice

A super-low fee often means a "form-filler" service. They'll process what you give them but they won’t ask if you could pay less tax or structure things more efficiently. That could cost you hundreds, even thousands.

🚩 3. You’re not getting support throughout the year

If all you're getting is a set of accounts and a tax return, but no ongoing help with VAT, payroll or basic questions like “Can I claim this expense?” then you’re missing out on serious value.

🚩 4. They’re clearly overstretched

Some low-cost accountants operate a volume model - hundreds of clients, minimum contact, maximum automation. That might suit a one-man-band with zero complexity, but not a growing creative business.

Bottom line: If you're paying less than £500 a year for your accounts and tax, and you're running anything beyond the most basic setup, you're probably underpaying. And under-served.

How Much Is Too Much?

Now let’s flip it. What if your accountant is charging premium fees, but you’re not seeing the benefit?

Here’s how to know you’re being overcharged:

❌ 1. You’re paying for “advice” that’s just Google-level answers

If you're shelling out extra every time you ask a question, but the answers are vague, generic, or could have come from ChatGPT, you’re not getting tailored expertise.

❌ 2. You’re on a fixed fee but still getting charged for "extras"

Some firms advertise fixed monthly fees but then charge extra for everything from copy documents to mortgage certificates. Make sure you know exactly what’s included.

❌ 3. You’ve outgrown your accountant — or vice versa

Some firms cater for big corporates and charge accordingly. If you’re a small creative agency, you may not need that heavyweight setup. Likewise, if you’ve grown and your accountant hasn't scaled with you, you might be paying more for less.

Bottom line: Paying £5,000+ a year might make sense for a multi-director company with multiple staff and complex tax planning. But if you’re a freelancer with a handful of invoices a month, that fee is excessive.

What Should You Expect for Your Money?

At a minimum, a decent accountant should offer:

   ✅Year-end accounts and tax returns done accurately and on time

   ✅Proactive support with questions during the year

   ✅Clarity on fees - what’s included, what’s not

   ✅Tax efficiency reviews and advice tailored to your circumstances

   ✅Help with compliance - VAT, payroll, Companies House, HMRC

   ✅Modern systems that make your life easier (Xero, Hubdoc, etc.)

And ideally… a bit of personality too. Especially if you're in the creative world. You want an accountant who gets you, not just one who speaks fluent spreadsheet.

Final Thought

If your accountant feels like a silent expense or a source of stress, rather than a partner who’s helping you grow, it might be time for a rethink. Whether you're overpaying, underpaying or just not getting the value you need, a quick conversation could make all the difference.

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