Short version: clean-up is a one-off project to fix the past and get you to a reliable month-end. Price depends on months of backlog, transaction volumes, number of bank/card accounts, data quality, multi-currency, and whether VAT under MTD needs correcting. We’ve included worked examples for 5, 20 and 35 staff, a calculator-style matrix, and a scoping checklist you can use with any provider to avoid “from £XXX” surprises.
Related guides: Bookkeeping outsourcing costs UK (2025/26) • Hidden bookkeeping fees (UK) • Bookkeeper vs Accountant vs Finance Manager (UK) • Outsourced finance team / Virtual Finance Office (UK) • 52-week rolling forecast • Cashflow forecasting services
Why clean-up matters (and why it’s often urgent)
- Compliance: VAT-registered businesses must keep digital records and file returns with compatible software under Making Tax Digital (MTD). Backlogs and manual workarounds usually mean errors you’ll need to fix. GOV.UK
- Penalties & interest: Late VAT submissions now use a points regime with a £200 penalty at the threshold; late-payment interest is charged from the day a VAT bill is overdue until it’s paid (rates set centrally by HMRC). GOV.UK
- Cash decisions: Until clean-up is done, your profit, cash and tax numbers are guesses. You can’t run a month-end reporting timetable (reports within seven working days) or a credible 52-week rolling cashflow while history is broken.
What drives the price (in plain English)
- Months of backlog to repair (e.g., 3, 6, 12+).
- Monthly volumes (bank lines, sales invoices, bills/receipts).
- Accounts in play (number of bank, card, PayPal/Stripe etc.).
- Data quality (duplicates, unreconciled lines, missing documents, suspense).
- Complexity (multi-currency, projects/WIP, deferred income, CIS if relevant).
- VAT: corrections, MTD software setup, and re-filings where needed. GOV.UK
- People and process: do we need to rebuild AR/AP controls and set a close schedule?
Software extras to expect: some bank feeds carry a small pass-through fee from the bank via Xero; capture apps like Dext (bundle) or AutoEntry (credits) can add costs, especially if you exceed the monthly allowance or pause and credits expire.
Typical clean-up price patterns (one-off, ex-VAT)
| Backlog & complexity | Light data issues | Moderate issues | Heavy issues |
|---|---|---|---|
| 3 months | £900–£1,800 | £1,500–£3,000 | £3,000–£5,000 |
| 6 months | £1,800–£3,000 | £3,000–£5,500 | £5,000–£8,500 |
| 12 months | £3,000–£5,000 | £5,500–£9,500 | £9,500–£15,000+ |
How to read this:
- Light = tidy bank feeds, <=2 accounts, basic VAT, limited suspense.
- Moderate = 3–4 accounts, gaps in receipts, some miscodings, VAT corrections.
- Heavy = 5+ accounts, multi-currency, missing reconciliations, big suspense, projects/WIP, possible VAT re-filings.
(These are realistic UK ranges for service SMEs; your exact scope comes from months × volumes × complexity.)
Worked examples (UK service SMEs)
A) 5–8 staff, 6 months backlog, single currency
- Volumes (monthly): ~250 bank lines, 120 sales invoices, 180 bills/receipts.
- Issues found: unreconciled card feed, missing receipts for expenses, small suspense, basic VAT tidy.
- Indicative clean-up (one-off): £2,200–£3,400.
- Afterwards: move to steady-state bookkeeping £600–£1,100 per month; management reports within seven working days. VAT records must be digital and filed via compatible software (MTD). GOV.UK
B) ~20 staff, 12 months backlog, FX customers (USD), projects/WIP
- Volumes (monthly): ~650 bank lines, 350 sales invoices, 500 bills/receipts.
- Issues found: no month-end journals (accruals/prepayments/deferred income), missing FX revaluations, AR not aged properly, VAT errors across two quarters.
- Indicative clean-up (one-off): £8,500–£12,500 (includes re-build of month-end and FX revaluations).
- Afterwards: steady-state bookkeeping £1,100–£2,000 per month; formal reporting timetable with day-by-day tasks. QuickBooks and Xero both support multi-currency on specific plan tiers only, budget the right licence.
C) 35+ staff, 6–9 months backlog, multi-entity UK, CIS contractors (subset of spend)
- Volumes (monthly): ~1,200 bank lines, 700 sales invoices, 1,100 bills/receipts.
- Issues found: unpaid supplier balances not reconciled, CIS not filed monthly, VAT return late → penalty points risk, partial intercompany.
- Indicative clean-up (one-off): £12,000–£18,000+ (scope-based; includes CIS and intercompany tidy).
- Afterwards: consider an outsourced finance team (bookkeeping → controller → virtual FD) to keep the close schedule on track. Late VAT submissions accrue points and trigger a £200 penalty at the threshold; late-payment interest runs from the overdue date. GOV.UK
“Cost by situation” (quick selector)
| Situation | What’s broken | What’s included in clean-up | Typical one-off (ex-VAT) |
|---|---|---|---|
| Compliance catch-up | Bank not reconciled, VAT behind | Bank recs, tidy ledgers, missing docs, VAT prep & submit | £1,500–£4,000 |
| Reporting rebuild | No journals, no pack | Recreate month-end (accruals, prepayments, WIP), AR/AP aged lists, sample management pack | £4,000–£9,000 |
| Complex/global | FX, projects/WIP, CIS, multi-entity | All of the above + FX revals, intercompany, CIS returns | £9,000–£18,000+ |
What providers will ask for (so the quote is accurate)
- Months of backlog (be honest).
- Average monthly volumes (bank lines / sales invoices / bills & receipts).
- Bank/card/payment platforms in play (e.g., HSBC + Amex + Stripe + PayPal).
- VAT position (quarters and errors suspected).
- Foreign currency exposure (customers/suppliers, which currencies).
- Industry extras (CIS, projects/WIP, retainers/deferred income).
- What “good” looks like for you (e.g., reports within seven working days, a simple AR/AP chasing schedule).
No-surprises scoping checklist (copy–paste for discovery calls)
- Confirm the past: months to fix, VAT quarters affected, any re-filings expected.
- Lock volumes: monthly bank lines, sales invoices, bills/receipts; number of accounts/feeds.
- Map tasks: bank recs, AR/AP tidy, receipts capture, month-end journals, sample management pack.
- Software & fees: ledger tier (multi-currency?), bank feed pass-throughs, capture app bundles/credits and any credit expiry if paused.
- Deliverable: month-end within seven working days and a simple reporting timetable going forward.
- Handover to steady-state: clear monthly fee and what’s in/out (VAT prep & submit, AR/AP chasing, payment runs).
- Exit rights: data exports, read-only steps, and who pays statutory Companies House fees (confirmation statement). GOV.UK
What “done” looks like (definition of complete)
- Bank & card accounts fully reconciled to the clean-up end date.
- AR/AP aged lists match reality (no old ghosts).
- All VAT quarters corrected and submitted via MTD-compatible software (where needed). GOV.UK
- Balance sheet zeroed for suspense, journals posted (accruals, prepayments, deferred income).
- Sample management pack delivered and agreed as the model going forward.
- Reporting timetable set: within seven working days after each month-end.
FAQs (plain English)
Is clean-up charged hourly or fixed?
Both exist. For predictability, ask for a fixed project price based on months × volumes × complexity, with a clear list of tasks and a cap on out-of-scope additions.
Will we need new software?
Not necessarily, but if you have foreign currency or approvals needs, you may need the right multi-currency ledger tier and a light app stack (capture/approvals).
Can you fix VAT errors from past quarters?
Yes—scope the periods and correct via your MTD-compatible software; be mindful of late-payment interest and penalty points if submissions were late. GOV.UK
What if our bank charges for a feed?
A few UK banks do, Xero passes those fees on. It’s small but should be declared up front. Xero
How do we stop needing clean-ups in future?
Agree a reporting timetable (deliver reports within seven working days), lock a simple AR/AP schedule, and use capture + bank rules properly. That’s it.
Your next steps
Want a firm, scope-based quote for clean-up (with a plan to deliver management accounts within seven working days going forward)?
Book a 20-minute planning call and we’ll map months × volumes × complexity and set a no-surprises path to steady state.