A partnership with an annual turnover of £400k paid over £2,300 for accounts preparation and three tax returns but didn’t really understand the tax process and why it took so long. She was charged for every single phone call made to the accountant, even when simply providing information for the tax returns.
How have we helped?
On the spot's service model made the annual process simpler freeing up time to discuss business and tax issues, plus at the same time reduced the annual fee to a fixed £1,400.
The owner prepares her own weekly income and expenditure figures which agree to her business bank account and prepares her own PAYE and VAT returns. She uses these figures to closely monitor her business on a daily and weekly basis and make her own comparisons to last year. She needs timely reaction and comment to her business and tax concerns as they arise.
Tax returns were prepared separately and some months after the accounts were signed off. The accountant's practice tax professional would call the owner asking her questions about the figures distracting her from running her daily business. There was no need to bother her about all the questions. The answers had previously been provided showing a lack of dialogue between the accountant and tax person.
When the tax returns were eventually received they contained errors and the explanation of the tax due wasn’t easy to reconcile to the figures she knew. There were no further reminders of the tax due, so the owner had to refer back to the letter several times.
On the spot visits the owner at least once a year and has other regular contact, through emailing tax updates or calling to check how the business is doing.
As soon as the year’s figures are ready, the owner calls on the spot to arrange a visit. During the visit, the owner’s figures are discussed, reviewed and understood by on the spot. The year end accounts and tax returns are prepared accordingly either on the client's premises or at on the spot's office. On the spot asks more questions as necessary, points out several business and tax ideas or comments, discusses and explains the tax position and, if the owner is happy, the accounts and all tax returns are submitted at the same time.
On the spot sets up the owner’s preferred reminder system of a text message. She is happy she understands how her accounts relate to her tax bill, her tax affairs are up to date, her tax return won’t get lost in the post and she won’t forget to pay her tax on time or how much it is.
Conclusion
Not only is the owner receiving an excellent, relevant, more focussed service, her professional fees have reduced from over £2,300 to a fixed £1,400 per year. And there are no irritating extra invoices for every conversation. It’s included!
