What If I Suspect My Accountant Is Overcharging?

Hiring an accountant should bring peace of mind. They help navigate tax rules, financial reporting, and compliance so you can focus on running your business. But what happens when you open an invoice and feel a wave of surprise—or even shock—at the number staring back at you?

It’s not uncommon for business owners to wonder if they’re being overcharged by their accountant. Whether the fee feels higher than expected, unclear, or disproportionate to the work done, the question arises: Is this reasonable? Or am I being overcharged?

Let’s unpack how accounting fees work, why they sometimes feel higher than anticipated, and what steps you can take if you suspect something isn’t adding up.

Is It Really Overcharging? Or a Misunderstanding?

First, it’s worth pausing to distinguish between genuine overcharging and a misalignment of expectations.

Accountancy fees can feel confusing because of how varied they are. Some firms charge by the hour, others offer fixed fees, and some use hybrid models. If expectations about pricing aren’t clearly set at the start, invoices can come as a surprise.

Some common scenarios where confusion arises:

• Work outside the original scope, such as resolving an HMRC query or providing additional advice

• Time-based billing without clarity on how much time tasks actually take

• Unexpected complexity in your finances that requires extra work

In many cases, perceived overcharging stems from poor communication rather than bad intent.

How Are Accountant Fees Usually Calculated?

Understanding how fees are determined can help assess whether you’re being fairly charged.

• Fixed Fees: Many accountants offer a fixed monthly or annual fee covering specific services like accounts preparation, tax returns, and payroll. These fees tend to be transparent if properly explained.

• Hourly Rates: Some work—especially advisory or consultancy—is billed by the hour. Hourly rates can vary widely based on the accountant’s qualifications, location, and complexity of the work.

• Project-Based Fees: One-off tasks like handling an HMRC investigation or VAT registration might be quoted separately.

• Complexity Factors: If your accounts are messy, disorganised, or require corrections, that can legitimately increase the fee.

Signs You Might Be Overcharged

While fees vary, certain warning signs may suggest overcharging:

• Vague or unexplained charges with no breakdown

• Bills much higher than the quote or typical market rates without clear justification

• Charges for services you didn’t request or agree to

• Regular increases in fees without explanation

• Being billed for rectifying the accountant’s own mistakes

That said, it’s important to verify whether the extra costs are the result of legitimate additional work.

How to Approach the Situation

1. Review Your Engagement Letter

Start by reading the engagement letter or contract you signed with your accountant. This should outline what services are included, how fees are structured, and what happens if additional work is needed.

2. Ask for a Detailed Breakdown

Politely request an itemised invoice or breakdown of the charges. A reputable accountant should be able to explain:

• What each charge covers

• How much time was spent (if hourly)

• Whether the work was within the original scope

3. Check Market Rates

Compare what you’re paying with what similar accountants charge for comparable services in your area. Rates can vary significantly, but if you find your fees are dramatically higher than average, that’s worth discussing.

4. Have a Candid Conversation

Sometimes fees increase because your business has grown, your accounts are more complex, or extra tasks arose that weren’t initially accounted for. A calm discussion can clear up misunderstandings.

Ask questions like:

• “Can you help me understand how this fee was calculated?”

• “Is this increase due to my business changing, or other factors?”

• “Are there ways to simplify the work or reduce future costs?”

What If You’re Still Unhappy?

If the conversation doesn’t resolve your concerns, there are further steps to consider:

1. Formal Complaint to the Firm

Most accountancy practices have a complaints procedure. Submit a formal written complaint explaining why you believe you’ve been overcharged.

2. Contact the Professional Body

If your accountant is a member of a professional body like ICAEW, ACCA, or CIMA, and you believe they’ve breached ethical guidelines—such as lack of transparency—you can raise a complaint. These bodies expect members to be fair, transparent, and act with integrity.

3. Consider Changing Accountants

If trust is damaged, it might be time to consider switching accountants. However, check whether you’re tied into a contract period and whether notice is required.

4. Legal Advice

In extreme cases—such as if you believe you’ve been charged for work not done—seeking legal advice may be appropriate, though this is usually a last resort.

How to Avoid This Situation in Future

• Ensure Clear Agreements Upfront: Make sure the engagement letter is detailed about what’s included, what’s extra, and how prices are structured.

• Agree on Fixed Fees Where Possible: Fixed monthly fees tend to eliminate surprises, especially for routine compliance work.

• Ask for Regular Updates: If additional work arises, ask for confirmation (ideally in writing) of what it will cost before it’s done.

• Review Invoices Carefully: Don’t be afraid to ask for clarification if something doesn’t seem right.