How much should a small agency spend on accounting?

A small UK agency (£300k–£1m revenue) should expect to pay £600–£1,200 per month for comprehensive accounting services including bookkeeping, VAT, payroll, monthly management accounts, and annual statutory filings. As a percentage of revenue, this works out to roughly 0.5–1%, which should decrease as you grow.

Is it worth paying more for a specialist agency accountant?

Usually, yes. A specialist understands media passthrough, project-based revenue recognition, contractor IR35 compliance, and agency-specific tax planning without needing to learn your business model. The efficiency gains and proactive advice typically outweigh any premium in fees. Most specialist agency accountants charge comparable rates to generalists.

What should be included in a monthly accounting fee?

At minimum: bookkeeping, bank reconciliation, VAT returns, monthly or quarterly management accounts, annual statutory accounts, Corporation Tax return, and access to your accountant for queries. Better packages also include payroll, tax planning, cash flow reporting, and proactive advisory. Always get a clear list of what is and is not included.

Can I reduce my accounting costs?

Yes, but not by choosing a cheaper accountant. Reduce costs by: keeping your Xero data clean (categorise expenses, reconcile weekly), providing information promptly when requested, batching queries rather than sending individual emails, and using receipt capture software (like Dext) to eliminate manual data entry. Clean books mean less accountant time, which can lead to lower fees.

How Much Does Accounting Cost for a Creative Agency?

Accounting fees for creative agencies range from £300 to £3,000+ per month. The variation is huge because the scope of work varies enormously. Here’s what drives the cost, what you should expect to pay, and how to assess whether you’re getting value.

In this guide

Fee Ranges by Agency Size

Accounting fees scale with agency complexity, not just revenue. A £500k agency with 3 people and simple retainer revenue has different needs from a £500k agency with 8 contractors, media passthrough, and international clients. Here are the typical ranges for UK creative agencies in 2026.

Feature

Agency Size

Typical Monthly Fee

Solo / Freelancer (under £85k)

£100–£300/month

Annual accounts, self-assessment, basic bookkeeping support

Micro agency (£85k–£300k)

£300–£600/month

Bookkeeping, VAT, annual accounts, Corporation Tax, basic advisory

Small agency (£300k–£1m)

£600–£1,200/month

Full bookkeeping, monthly management accounts, tax planning, payroll

Medium agency (£1m–£3m)

£1,200–£2,500/month

All of the above plus KPI dashboards, cash flow forecasting, FD support

What Drives the Cost

Not all agencies at the same revenue level need the same level of service. Several factors push costs up or down, and understanding these helps you negotiate the right package.

Transaction volume: more invoices, expenses, and bank transactions means more bookkeeping time
Number of employees and contractors: payroll complexity and IR35 assessments increase cost
Media passthrough: requires careful revenue recognition and VAT treatment
Multi-currency: international invoicing adds complexity to bookkeeping and VAT
Frequency of reporting: monthly management accounts cost more than quarterly
Advisory scope: tax planning, cash flow forecasting, and strategic advice add value but increase fees
Industry specialism: a specialist agency accountant may charge slightly more but delivers more value

Hidden Costs to Watch For

The headline monthly fee is not always the total cost. Some firms advertise low monthly retainers but charge separately for work you assumed was included. Before signing with any accountant, ask explicitly what is and is not included in the quoted fee.

Payroll processing — often charged separately at £5–£15 per employee per month
Year-end accounts preparation — some firms treat this as a separate annual charge
Corporation Tax return — may be bundled or charged as an additional £500–£1,000
Ad-hoc queries — some firms charge per email or phone call outside the retainer
Software costs — Xero subscription may or may not be included in the fee
R&D tax credit claims — typically charged as a percentage of the claim (15–25%)
IR35 assessments — may be charged per engagement reviewed

How to Think About Value, Not Just Cost

The cheapest accountant is rarely the best value. An accountant charging £400/month who misses a £5,000 R&D tax credit opportunity costs you more than one charging £800/month who identifies it proactively.

The right way to assess accountancy value is to consider the total financial impact: tax saved, cash flow improved, errors avoided, and time freed up. A good specialist agency accountant typically pays for themselves many times over through proactive tax planning, optimised director remuneration, and better financial decision-making.

Ask: what tax savings have you identified for similar agencies in the past 12 months?
Ask: what does your proactive advisory actually look like in practice?
Compare total cost including all extras, not just the headline monthly fee
Consider the cost of getting it wrong: penalties, missed opportunities, bad decisions
The right accountant is an investment, not an expense

Getting the Best Value from Your Accountant

The agencies that get the best value from their accountant are the ones that treat the relationship as a partnership, not a supplier contract. This means sharing information proactively, asking questions when you do not understand, and involving your accountant in decisions before you make them, not after.

Share your business plan and growth targets — your accountant can only advise if they understand your goals
Ask questions regularly — most good firms include unlimited queries in their fee
Involve your accountant in hiring, pricing, and investment decisions early
Review your package annually — as your agency grows, your needs change
Provide clean data — categorised expenses and timely invoicing reduce your accountant’s workload and your fees

Frequently Asked Questions

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