How much does it cost to hire a Contractor Accountant? | A Complete Pricing Blog
A Contractor Accountant must be hired to guide an entity to reach a specific future state. Based on those future states, you can choose the contractor for a specific project, a transaction that has to be tackled, clean up the reports, redefine the controls, or request guidance.
In this article, let’s dive into contractors, how to choose the contractors, why to use them, contractors’ pricing structure and contractor accountant fees, and some bonus points.
Who are Contractors?
A contractor accountant is a dedicated one who must understand how the business has to run and structure the capital of any limited company. It must be done in a legally tax-efficient manner.
How to choose the Contractor?
There are various ways to choose a contractor accountant like from
- Top Big four Firms
- Financial Advisory Consulting Firms
- Tax Firms
- Staffing Firms or Temp Agencies
- Independent or Freelance CPAs
- Other Public Accounting Firms
The major differences between those mentioned are the contractor pricing and contractor hourly rates.
Why use a Contractor Accountant?
There are plenty of positive reasons to make use of contact or accountants which include
- Being updated on Latest Industry Legislation
- Contract Accountant must be extremely knowledgeable for offering expert tips on tax planning and legislation
- Specific Tax Legislation
- Giving the best ways to structure the company’s capital in a legally tax-efficient way
- Fixed Fee
- Operates on the basis of a fixed fee with zero additional charges, unlimited assistance & advice regarding tax, cash flow, and finance of a company
- Saves Time
- Contractors will manage your finances, leaving more time on your hands
Do contractors need accountants?
It’s not that contractors need accountants! If you are a contractor and if you know all the involved processes and the HRMS requirements, you don’t need to look for an accountant! It is not that every contractor requires an accountant, and similarly, all the clients need a contractor.
If you know the requirements and process proceed with it, else you need to choose the right accountant.
Contractor Pricing Structure & Fees
A contractor accountant will not work for free, they have the contractor accountant fees. They usually offer the services at the package fees. Based on your needs, you can pick from various available package fees. The pricing strategies of a contractor accountant fees are
- Fixed Fee Accountancy Service
- Variable Fee Model
Let’s fall for these two contractor pricing structures & fees.
What’s a fixed fee accountancy service?
The fixed contractor accountancy is nothing but the contractor accountant who works for you will charge a fee that seems to be stable without varying the service rates. The accountancy contractor will charge his/her rate will be fixed at their price for the total services without any variation.
Whatever may be the service you have, or whatever may be the time they work, since they go for contractor accountancy fixed fees, they just ignore all other specifications! They accept with their fixed rates. Moreover, fixed fee contractor accountants are considered to be the best. Because he will not load any extra hidden charges.
What’s the Variable Fee Model?
The variable fee model is just the converse of the fixed-fee accountancy service. Unlike fixed fee contractor accountancy services, the variable fee model will charge for services and the time they consume. Sometimes, there may be hidden charges too. Contractor rates are usually expensive and the accounting contractor rates vary from 3,531.65 rupees per month. The contractor costs up to 22,072.09 rupees per month.
General Contractor Rates per Hour
The contractor accountant even charges as per service rate or on an hourly basis. The contractor’s hourly rate ranges from 1,500 rupees to 2,000 rupees based on the experience.
How to Hire a Contractor Accountant?
While hiring a contractor accountant, he must be able to cover a wide variety of services including the following
- Maintaining the financial records
- Setting up the accounting systems & bookkeeping
- Providing tax planning advice
- Preparing & filing the business taxes
- Offering business tips that help in operating cost-effectively
- Preparing a personal business plan
- Auditing the financial books or generating the audited financial reports
Check here for GST Consultant in Mumbai
Points to be noted
- Before hiring a contractor accountant, make sure that they have no hidden charges
- Prefer appointing a Fixed Fee Contractor Accountant
- Check for the reviews about the contractor and their services
- Don’t leave a fee for them unless you get satisfied with their service. Few of them might charge monthly rates as well
- Try negotiating for a reasonable charge
- Few might provide a great money-saving deal. Make use of that to save your hard-earned money.
The Bottom Line
Most of the time, it is difficult to communicate or contact your accountancy contractor, as they might be busy with their personal work. Even when your hire an employee, in some rare scenario your employee might be on leave or on their other personal work.
So, it is considerably better to choose accounting software for your business. There are lots of accounting software available in the market. Additionally, there is accounting software for non-accountants who can use them efficiently. Pick the right one among them.
mybooks is one of the accounting software for non-accountancy who can use them more effectively without any inconvenience.