When starting your own business, it’s understandable to be confused with all the accounting jargon and various tax requirements. This is why most opt for using a traditional accountant. Passing the responsibility onto someone else can be comforting.

But, this isn’t always the case and any mistakes made can leave you with more stress and work to tidy up. So why not learn more about your finances, and take control of your accounting, all while saving on the costs of using a traditional accountant. This is all possible when you choose Crunch to support you and your finances.

In this article, we will break down all the differences between online accounting software, like Crunch, compared to a traditional accounting firm. So you can make an informed decision that is best for you and your business.

Know your obligations

With a traditional accountant, you can stack up those invoices and receipts until your accounting year ends and send them after. For some, this may be an easier option. But, this does mean that you won’t find out how much corporation tax you owe and how much in dividends you can take until your Year End Accounts have been completed. This could leave you with a large sum of money to pay with no preparation.

If you use an accounting software and service such as Crunch, you can get live visibility of your accounting. You’ll be able to see your obligations such as any Corporation tax you owe and how much you can pay yourself in dividends, without having to wait until your accounting year ends. Simply keep your Crunch account up-to-date with your finances and you’ll have all of your calculations at your fingertips. You can then use this information to set up a monthly savings plan towards what you owe, to avoid a last-minute lump sum. If you’re on a paid subscription, it’ll give you time to use our Ask an Accountant service where Chartered Certified accountants can provide bespoke advice based on your account for no extra cost. This service is also available for free subscription clients for a small one-off fee of £24.50 +VAT.

Transparent charges

You’ll often find when researching traditional accountants that a lot of costs are hidden. This is because a charge will usually be set depending on the client, so each client could pay something different for the same service. With Crunch, this is not the case. We are upfront on all costs and you will not be charged more or less for the amount of detail involved in your accounting.

Based on research by Householdquotes.co.uk, the average price that a traditional accountant will usually charge is between £25 to £50 per hour for simple advice, but if you need specialist services like tax and business advice, it can become much more expensive at around £125 to £150+ per hour. These hourly fees quickly add up and play a huge part in cost increases.

With Crunch, hourly fees don’t exist - you can spend as long as you like speaking with our Crunch experts, getting the right advice, and talking technical without the worry of additional fees being added on top of your services.

Bookkeeping services

Bookkeeping services are one of the most costly accounting services if you don’t do this yourself. With Crunch’s software, the bookkeeping is done by the business owner for free through bank reconciliation. Understandably, many business owners don’t have the time to do this or have bigger tasks that require their attention. But, if you keep up-to-date on your bookkeeping regularly, the task becomes easier and quicker to complete. Plus, a massive benefit is the savings you’ll make in costs. A traditional accountant usually charges anywhere from £40+ per hour for only 50 transactions per month, but for transactions ranging between 500 to 1,000 each month, it could cost as much as £300 to £500 per hour.

A simple monthly fee

Crunch offers a monthly payment service to break down your accounting costs. There’s a choice of different plans to find the right one for your business type and accounting requirements. Ranging from newly self-employed clients with startups to established businesses with 2+ directors. Know what you are paying for our services and have full control over what features you need.

Get unlimited support from our experts and access to fully trained accountants, as well as our seamless software all-in-one plan. Neither a traditional accountant nor other online accountants, such as Xero or QuickBooks, offer this.

Discover the difference

Get all you could need to smash your accounting in one place while saving money. What more could you want? Never worry about the accounting jargon when you have unlimited support from our team who are on hand to help with any questions you might have, no matter how big or small. Be confident in your monthly costs and finances when you can view all this information in real-time in your Crunch account, anytime anywhere.

See for yourself with our 14-day free trial. Pick your perfect plan, sign-up for Crunch, and start saving today.