If you’re researching accounting support, you’re likely trying to find clear prices to manage your expectations.
You want to know if you’re looking at $500 or $5,000. Of course you do!
The exact amount it costs to work with us depends on your business needs and the services we provide you. Because our services are tailored to the specifics of your business (and your goals) that’s not something we could post in this blog.
What we can do is be extremely transparent on how much our services cost, and share some examples of what our clients are paying.
Of course, you don’t need to do everything at once. We can build a plan with you to get the essential items sorted first, before moving on to the other services later.
Three factors influence our pricing: size, complexity and frequency.
Size
It makes sense that a larger business will require more advice and support than a smaller business. The factors indicating the size of a business include:
- The number of annual sales
- The number of employees or contractors
- The number of bank and credit cards
- The number of hire purchase agreements and chattel mortgages
Complexity
A more complicated business in terms of operations and business structure will have a higher price too. Some factors that indicate complexity include
- Overseas sales and bank accounts
- Importing
- The number of employment awards and employee allowances
- The provision of salary sacrificing and fringe benefits e.g. motor vehicles provided to employees
A business structure is whether you operate as a sole trader, a company, a partnership, a trust or a combination of these. Your business structure has an impact on key areas like tax and asset protection. A more complicated structure can lead to tax savings and enhanced asset protection, but it will likely mean a higher price in terms of accounting.
Frequency
Meeting on a monthly or quarterly basis to review financial performance will be higher priced when compared to meeting on an annual basis. However, you are likely to make better and more timely decisions the more frequently we meet.
Pricing examples
To give you more guidance, here are three examples with price ranges.
Adam
Adam’s a plumber who recently established his business. He operates his business in a company structure, using Xero as his accounting software. He has an apprentice working with him on a casual basis. He has a loan for his work ute for which he makes monthly loan repayments. Using Xero, he emails quotes and invoices to his customers and does his own bookkeeping. Adam is keen to learn how to best use Xero because he doesn’t want any unexpected (and big) tax surprises.
The services we provide Adam include:
- Reviewing the previous 3 months transactions in Xero and any coding updates
- Ensuring all accounts are reconciled at the end of each quarter
- Preparing and lodging the quarterly business activity statement
- Issuing a schedule of estimated tax payments and their due date for the next 12 months (updated quarterly)
- Meeting to set his business goals and helping him understand the numbers in his business.
- Preparing the annual financial statements and income tax return for his company
- Preparing Adam’s personal income tax return
- Acting as registered office and attending to all company secretarial duties
The pricing for Adam’s business is in the range of $330 to $550 + GST per month.
Steve and Katie
Steve and Katie run an air conditioning installation and maintenance business which they established over 10 years ago. Steve prepares the quotes, job scheduling and invoicing. Katie works on the business’s development. The business has sales of over $1.4m per year and employs 3 tradesmen and 2 apprentices. They have a fleet of 4 work utes too.
They use the Fergus app for job management and planning, timesheets, quoting and invoicing. This app is integrated with Xero for payroll and accounting. They have a bookkeeper who enters bills and expenses, prepares the payroll, and prepares the bank and credit card reconciliations.
Steve and Katie’s Family Trust owns the premises they operate the business from. The business pays rent to the Family Trust. They have a loan from the bank for the work premises.
Steve and Katie are concerned about managing cash in their business in particular: fortnightly payroll, payments to air conditioning suppliers, tax payments and mortgage repayments on the work premises.
The services we provide Steve and Katie include:
- Unlimited phone and email support for payroll and accounting questions
- Preparing a 12-month forecast of estimated tax amounts, a schedule for when they’re due and advice on how to save tax
- Quarterly review meetings for the previous 3 months of finances. We review KPIs and goals, update the 12-month forecasts, and update on tax planning.
- Preparing and lodging of the quarterly business activity statements
- Preparing and lodging of annual financial statements and income tax returns for the business
- Preparing of the annual financial statements and income tax returns for the investment trust and Steve and Katie’s personal income tax returns
- Acting as the registered office and attending to all company secretarial duties
The pricing for Steve and Katie’s business is in the range of $850 to $1550 + GST per month.
Matt and Jodie
Matt and Jodie started their electrical business in 2006. They have grown the business to annual sales of over $3.5m, employ 22 electricians and apprentices, and have a fleet of 16 utes and vans on the road. Jodie is the office manager for the business and they employ a bookkeeper and an office assistant too.
With the stress of running a larger business, Matt and Jodie require more proactive business advice. However, their business is not large enough to require hiring a full time Chief Financial Officer (CFO) on $250,000 per year. To assist Matt and Jodie, they outsource their accounting to us, as their CFO (or fractional CFO).
The services we provide include:
- Unlimited phone and email support for payroll and accounting questions
- Monthly calls to review prior months financial results, the KPI dashboard and advice on how to improve their business.
- Preparing a 12-month rolling forecast including profit and loss, the balance sheet and cash flow
- Preparing a 12-month forecast of estimated tax amounts, a schedule for when they’re due and advice on how to save tax
- Quarterly reviews for the previous 3 months of finances. We review KPIs and goals, and update them on the 12-month forecasts, the tax planning and their improvement projects
- Preparing and lodging the monthly payroll tax return
- Preparing and lodging the quarterly business activity statements
- Preparing and lodging annual financial statements and income tax returns for their business,
- Preparing the annual financial statements and income tax returns for the investment trust
- Preparing Matt and Jodie’s personal income tax returns
- Acting as registered office and attending to all company secretarial duties
The pricing for Matt and Jodie’s business is in the range of $3500 to $5500 + GST per month.
Ask yourself: What else is important in choosing an advisor for your business?
When deciding which advisor to use, pricing is an important consideration. Let’s not pretend cost isn’t a major factor in the decision making process for any purchase. We all want to know what to expect and how much we might need to invest in the outcome we want.
However, like other important investments, there are other factors to consider.
- How well can you relate and how comfortable are you with your advisor?
- Can you reach your advisor when you need to?
- Do they understand your business?
- Are they asking about your short term and longer term goals?
- How long does it take for them to get back to you when you have a question?
- Are they showing you how to save tax?
Want to know more about how we do things at Lightbeam? Here is a link to our contact form to chat specifically about your business.