The average accountant - your view

The average accountant - your view

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I'd like to get a feel for how much time we all spend on low value work such as bookkeping, bank reconcialtions, cash controls and VAT returns.

Accounts and tax returns is any time after the trial balance.
Robert Harper

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By Robjoy
19th Feb 2004 18:54

Define 'value'
As a bookkeeper, not an accountant, I spend ALL my time on what you call 'low value work'! But isn't it like calling building the foundations of a house 'low value' because their made of cheaper materials than the fancy brickwork? The after-Trial-Balance clever stuff is going to be nonsense if the bookkeeping wasn't up to scratch. What your clients need is an understanding of the distinction between bookkeeping and accounting, then maybe they'll be comfortable paying a bookkeeper (at a lower hourly rate than you) through the year, and you'll be comfortable that your raw material - the Trial Balance produced by the bookkeeper - is a sound foundation for your high-value work.

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By JSJ54
03rd Feb 2004 19:49

Too bl**** much!
I dread to think Robert but when coupled with Inland Revenue delays & the consequent extra work I would say that 50% of my time is spent on low value work.

I would be interested in other peoples views which will vary, I'm sure with firm size.

We are a two person firm - one man one woman or is it the other way round.

P.S. Our local Business Link has been surveying local businesses to discover their gender! Yes, despite the problems facing small business they feel this is important. I asked to be classed as hermaphrodite which threw them completely. I just hope I am right!

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By AnonymousUser
04th Feb 2004 14:42

yes but is it?
As a two person practice I won't let the employee waste her time doing basic bookkeeping or making tea when I employ her to do the technical stuff. She is good at tax returns and PAYE and tax credits so I want her to do that. I make the tea and either do the bookkeeping (defined as pre trial balance stuff according to the parameters laid out in the question) or occasionally I sub it out.

However, my 26 years' experience (at all levels in firms small, large and huge) has taught me that doing the whole job frequently gives one an insight into a client's business and modus operandi that could not otherwise be obtained. Therefore I question strongly whether this should be classified as low value work.

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By AnonymousUser
04th Feb 2004 17:16

Is it low value?
Phil - thanks for taking the time to post a reply. Putting to one side the "value" question. Can you let me have your view on the percentages?

Value (like beauty) is in the eye of the beholder. The only person whose view matters is the client. But I'll bet a pound to a penny that any client of yours or mine doesn’t like paying money for this work. And the reason they don’t like paying is because they don't value this work. How can they when they can’t benefit from this effort?

On the other hand, I believe our clients will be happy to pay good money if we save them tax, help them plan their finances and make their business more successful.

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By TheBooks
04th Feb 2004 18:49

A fair percentage
Yes a good part of my work is on this "low value" work.I agree with Phil that doing the whole job gives a much better insight. I only realised this after "farming out" some book keeping. Although it can be fairly mindless, a full understanding of the client's operations increases the worth of the number crunching.

Robert ~ I think clients accept that this work has to be done and generally don't mind paying. Many don't do it because they either can't or don't like doing it. I gave up doing most of my own car maintenance for both of these reasons!
Clients like to know that their accounts have been prepared properly and that they can rest assured knowing that they meet the requirements of both the Revenue or HMC&E.
I do my mechanic's accounts and he does my cars ~we are both happy with the work each other does.
Saving tax and business planning and advice is ,of course, important too.

Cheers
Tim

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By AnonymousUser
05th Feb 2004 16:25

Not sure
Tim,

Thanks for making the effort to reply. Please tell me what insights you and Phil get from doing this work? What do you learn about the client’s business goals? How do you help the client develop a business and personal strategy? How do you help the client overcome the challenges they face? Does this work help you come up with ideas on how to make the clients business more successful?

I agree a client does value peace of mind. But an initial consultation with an accountant, a good bookkeeper and a computer programme can deliver this. How much they value this work is debatable. I believe the opportunity cost for accountants is £150 an hour. I do not think clients are willing to pay this for low value work.

I understand the exchange of time but would you pay £50 or more per hour for a fully qualified mechanic to fill up the water for your windscreen washers, put air in your types and wash the car?

The danger is enjoying the work and being good at it while you try and run a business. Have a read of The E-Myth Revisited by Michael Gerber and you’ll see where I am coming from.

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