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Services for "corner" shop

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Hello,

I have been asked to do bookkeeping & accountancy services for a newly started “corner” shop. Would you say around £1000 + VAT per month would be adequate (VAT, bookkeeping, annual accounts and CT600). And payroll services charged separately.  Location – Midlands. 

Thanks :)

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30th May 2019 11:38

Although the enquiry lacks substance, £12,000 + Vat per annum, for the proverbial corner shop, sounds excessive.

What are you thinking for payroll - £500 + Vat per month?

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30th May 2019 11:54

I think that sounds fair, if you're also doing 3 days a week in the store stacking shelves and manning the till, seems a bit steep just for bookkeeping and accounts.

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30th May 2019 11:54

More than adequate.

If the owner has sense, they'll get another quote.

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By DJKL
30th May 2019 11:58

Must be a lucrative corner shop if it can afford that sort of fee level.

Catch with them is they tend to have lots of purchase invoices for small amounts so the accounting work can be expensive relative to turnover, however £12k sounds OTT. If overloaded with transactions I would be looking at a less labour more tech solution to the record keeping.

Starting questions, what sort of turnover does it have, what sort of profit and how many purchase invoices a month, next question, what more complex niggles does it have re the income side?

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30th May 2019 12:00

For a serious answer, for the couple of shops I've done in the past, the VAT returns done from till rolls and invoices, the annual accounts, and associated tax returns costed out at between £2500 - £3500, excluding payroll.

We didn't keep full books, just did quarterly spreadsheets for the VAT returns to pull together all the source info, then joined these up at the year end.

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By DJKL
to Duggimon
30th May 2019 12:20

May of course be slightly trickier with MTD.

I really hate doing accounts for CTNs small food stores etc, and always have, you always knew when someone was doing an incomplete records one, large cardboard box of records at their desk and a manager/ partner forever hovering over the member of staff bleating about the time being spent.

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to DJKL
05th Jun 2019 10:04

I thought you dont need an accountant. Just click a button on your phone and "hey its job done"

Just pay for the app. £20 a month.

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to Rgab1947
05th Jun 2019 10:17

Quote:

I thought you dont need an accountant. Just click a button on your phone and "hey its job done"

Just pay for the app. £20 a month.

Rubbish. It's a free app.

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30th May 2019 12:42

At £12000 a year, it'd be cheaper for the shop to set on a part-time bookkeeper.

Even if you took on the final accounts and tax.

As DJKL says, the problem is the large number of small transactions.

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By DJKL
to lionofludesch
30th May 2019 13:02

Especially all the little ones made in cash, usually out of the till , paying the roll man, the peanut/ Bombay mix man, etc, these always used to drive me up the wall.

The only things I hate more are petrol receipts and parking stickies. (more types of clients have these)

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30th May 2019 13:43

?Adequate definitely
Over the top - also
Are you sure you don't mean annually
IF so
Not enough

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30th May 2019 14:21

If you acquire the client on those terms you are acquiring a very stupid one.

If you are, understand that the bulk of the job is going to be bookeeping and you are going to quote at accountancy rates, the honest thing to do would be suggest they find a bookkeeper or find one for them.

It's also the commercial thing to do if you want an enduring relationship with them.

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30th May 2019 14:49

I think Dick Turpin Accountants has quite a ring to it!

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31st May 2019 11:13

If they accept your quote, please show them in my direction. I've got a cracking offer for them on some magic beans.

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By sash100
03rd Jun 2019 21:44

With a corner shop just starting, huge initial outlay and low margins. 12K is going to be a shock for them. Perhaps you are not bothered about getting the deal.

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By 0098087
04th Jun 2019 10:08

£12000 a year..seriously!!

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04th Jun 2019 10:47

I misread the posting I thought poster was suggesting £1000 pa. Which as others have said is on the low side.

But maybe this is his/her first new client

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By NH
04th Jun 2019 11:00

had to check the diary, I was sure 1st April had been and gone

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By mrme89
04th Jun 2019 11:05

If you are doing the bookkeeping, the VAT, accounts and tax should be a piece of P.

A lot of the bookkeeping could be automated.

I can't get anywhere near £12k without doubling or even trebling an already good fee.

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By nazman
04th Jun 2019 12:27

No doubt the proposed charges can be justified if the shopkeeper is making money by selling drugs or some other illicit stuff.
Good luck anyway!

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04th Jun 2019 12:42

Quote:

Hello,

I have been asked to do bookkeeping & accountancy services for a newly started “corner” shop. Would you say around £1000 + VAT per month would be adequate (VAT, bookkeeping, annual accounts and CT600). And payroll services charged separately.  Location – Midlands. 

Thanks :)

Got to be a wind up surely?

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By JD
04th Jun 2019 13:20

Somebody has been to the school of ''Value Pricing.''
It is rather over the top for what is a low margin, cost sensitive business.

If you ran that sort of business would YOU be prepared to pay at that level.

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05th Jun 2019 10:24

The clients I do payroll for are all on Moneysoft and the pension procedures are very simple. The software stops you if you make a mistake. I make 1 charge for payroll, which includes any pension work

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