The costs of an accountant are not regulated or determined by local governments, so the answer isn’t as simple as saying a percentage of a purchase price, as with many estate agents, for example. This means that you’ll have to put a bit more work in to figure out how much you want to or can spend on an accountant.
Of course, the cost of an accountant will also depend on how frequently you use an accountant’s services, and depending on the type of business you run, this can vary quite a lot. Accountants and attorneys typically bill on an hourly basis. And the number of hours they need to spend on your purchase depends on a variety of things, from the size of the deal and the complexity of the transaction to how competently the seller has kept financial and business records.
How much is charged depends on how taxing (pun intended) the work they must do is. In some countries, such as the USA, accountants charge by hour. However, in the UK, accountants charge by job. This is little known, but the way it works is that you and your accountant will meet to discuss your business’ needs, and they will then quote you an annual rate.
As with most things, you can probably assume that a good accountant will cost more than a bad one. However, this also isn’t as simple as that, because factors such as business size, experience, and projects type all influence the cost. If you’re a small business, you may want to look for an accountant with experience in advising small businesses, and it makes little sense to spend more on an accountant who specialises in big business deals, if that isn’t who you are. In this case, you might be better off with a small business accountant who charges a moderate annual fee – saving your business money and most likely giving your business better advice.
It is also worth noting that someone who has worked 25 years in the industry may charge more than someone who is just starting out. Whilst you may have greater peace of mind opting for an experienced accountant, there is nothing to say that a newly qualified accountant won’t be able to make the cut, and you could save yourself money for services that are just as good. One thing to look out for is whether your accountant is a chartered accountant or not). A chartered accountant will have to engage in continuous training in order to remain chartered, meaning that you’ll be advised by a fully qualified and informed professional.. A chartered accountant is usually a sign of a trustworthy business partner.