The very wise and successful Warren Buffett said “You get what you pay for”. The current surge of Cut Price Property Accountants and Small Business Accountants certainly seems to be a good example of this.
AT M&H we’re currently seeing a surge in these cut price “accounting services” and whilst we welcome the competition, we encourage all clients and potential clients to ask a few questions before engaging their services, as it may cost you more than you think.
Here’s a few things to be aware of that we’ve uncovered:
- The discounted services are often offered via a web portal, where it’s the client who enters all the data into the system and effectively does the work for the Accountant. So no added value…so it really should be cheap if you are doing all the work!
- Many of these services do not provide a full set of Financial Accounts. This may or may not matter to you depending on whether you need to present these to the bank for further investment or annual financial reviews etc.
- Many of these services are outsourced to other countries which may not matter to some people, but others may not like their confidential data being sent overseas (and in some cases without their knowledge).
- These cut price services may also be being prepared by businesses with non-qualified staff, who don’t always know what they are doing.
- Some of these businesses advertise a “from” price. This may very likely mean that they don’t tell you about all the hidden extras that they “reserve the right to charge” during the process. Just yesterday we saw a website which promoted “starting from $100 per month”. On our investigation by the time the extras were added in we calculated the cost to be $280 per month for a very small business, which included six GST returns. $3,360 per annum is a vast difference from the $1,200 per annum minimum advertised! Buyer beware!
We think it’s prudent that if you’re considering some of these cut-price Accounting Services that you ask a few questions first, and read the fine print, because “cheap” is not always “good”.
If you’d like any further information or assistance with your decision making the team at M&H are here to help.