Short version: headline prices hide scope. The most common “gotchas” are software and app add-ons, multi-currency uplifts, clean-up/catch-up work, VAT filing under MTD, CIS add-ons, Accounts Receivable (AR) /Accounts Payables (AP) chasing, management reporting timelines, Companies House filings, and data exit access. This guide shows where those costs live, how to spot them before you sign, and how to buy bookkeeping with no surprises.
Related reads: Bookkeeping outsourcing costs UK (2025/26) • Bookkeeper vs Accountant vs Finance Manager (UK) • Outsourced finance team / Virtual Finance Office (UK) • Payroll outsourcing costs UK (2025/26) • DIY vs outsourced payroll • 52-week rolling forecast • Cashflow forecasting services
What “from £XXX” rarely includes (and why it catches you out)
| Hidden cost | How it appears on the invoice | Why it’s often missing from quotes | How to avoid surprises |
|---|---|---|---|
| Bank feed charges (via your ledger) | Monthly pass-through fees from certain banks | Some UK bank feeds carry provider fees that the ledger passes on to you (not the bookkeeper). Xero confirms some banks charge and these can be passed through. Xero | Ask your provider to confirm which bank feeds you use and whether fees are passed through from your ledger. |
| Receipt capture / OCR apps (Dext, AutoEntry, etc.) | Monthly or per-document credit bundles; overage if you exceed volume | Pricing is volume-based; credits and overages are easy to miss. AutoEntry credits now expire sooner when paused, which can waste pre-bought credits. autoentry.com | Insist on your expected monthly docs and the overage rate in writing. If you ever pause, confirm credit expiry rules. |
| Multi-currency | Monthly uplift (higher ledger plan tier) | Multi-currency is not on entry plans; you typically upgrade (Xero) or need Essentials/Plus+ (QuickBooks). Xero Central | If you have any FX now or likely within 12 months, price the multi-currency tier up front. |
| Clean-up / catch-up work | One-off project fee; sometimes split across months | Backlogs, miscodings, missing receipts aren’t included in “steady state” monthly fees. | Ask for a separate clean-up quote based on a sample review and agree the definition of “steady state.” |
| VAT under MTD (prep & submit) | Monthly/quarterly add-on | You must use MTD-compatible software to keep VAT records and file returns — the software and process need scoping (and can be extra). GOV.UK | Confirm who prepares and submits VAT and with which MTD-compatible software. |
| Penalties risk (late VAT) | Not a fee, but real cost if returns are late | HMRC runs a points-based regime: hit the threshold → £200 penalty, and £200 again for each late return while at threshold. GOV.UK | Bake a reporting timetable into your agreement (returns, reviews, sign-offs). |
| CIS filing (construction) | Monthly add-on or software add-on | CIS returns and contractor features are often a paid add-on in the ledger ecosystem. Xero | If you’re in CIS, confirm monthly return ownership and whether software add-ons are included. |
| AR/AP chasing & payment runs | Monthly tier or per-activity pricing | Many quotes cover posting only, no debtor chasing or supplier run approvals. | Decide if you want credit control and pay runs included; price them. |
| Management pack (timely) | Monthly add-on or “year-end only” tidy | Some providers only “tidy up” quarterly; you want a pack within seven working days. | Ask for a sample management pack and commit to delivery within seven working days of month-end. |
| Companies House confirmation statement | Annual filing fee + service fee | Filing has a statutory fee (£34 online / £62 paper); provider may add service fees. GOV.UK | Confirm whether filing is included and who pays the statutory fee. |
| Data exit / portability | One-off export or reactivation fees | After cancellation, QuickBooks keeps read-only access for 1 year; Xero archives data for ~7 years but you may need to reactivate for access. QuickBooks | Put data-exit steps in the contract: who exports what, in which formats, before cancellation. |
The three biggest “scope traps” (and how to fix them fast)
- Volume caps & overage
Many “fixed” fees hide a cap on documents/transactions, go past it and you pay more. Some firms even sell per-transaction bundles.
Fix: Quote on your volumes (bank lines, sales invoices, bills/receipts) and insist on a clear overage rate. - Software surprises
Two common ones: bank feed fees passed through by the ledger, and OCR credit overages (Dext/AutoEntry). Xero
Fix: List the exact apps, who pays, and what happens if volumes spike or you pause a subscription (credit expiry). help.autoentry.com - Month-end that never lands on time
Quarter-end tidy-ups cause VAT and cash surprises. HMRC’s VAT regime now penalises late filings more clearly. GOV.UK
Fix: Contract for management reports within seven working days, with a simple close checklist and owners by day.
Worked examples (how the fees often creep in)
A) Single-currency, low volume, looks cheap upfront
- Quote: “From £X/month” for posting & VAT.
- Reality: add bank feed pass-through (small, but not quoted), receipt capture credits (overage in busy months), confirmation statement fee annually. Xero
B) Growing team + USD supplier bills
- Quote: bookkeeping on entry plan.
- Reality: multi-currency requires a higher plan (Xero premium/Established/Ultimate variants; QBO Essentials/Plus+). Monthly uplift hits when FX begins. Xero Central
C) Construction services (CIS)
- Quote: “VAT & bookkeeping included.”
- Reality: CIS contractor filing is usually a separate add-on or service line, plus monthly workload. Xero
Buy bookkeeping with no surprises (copy-and-paste checklist)
Ask your provider to confirm in writing:
- Volumes: average monthly bank lines / sales invoices / bills & receipts; the overage rate if we exceed.
- Apps & licences: ledger plan, bank feed fees, receipt capture credits, approvals; who pays. Xero
- Scope: VAT prep & submit via MTD-compatible software, month-end pack within seven working days, AR/AP chasing, CIS (if applicable). GOV.UK
- One-offs: clean-up/catch-up fee and the definition of “steady state.”
- Compliance extras: confirmation statement ownership and statutory fee; any registered office charges. GOV.UK
- Exit: your rights to exports/read-only access (QBO 1 year; Xero archive ~7 years but may require reactivation). QuickBooks
Questions to ask your new bookkeeper/accountant (to avoid hidden fees)
Use this as a quick script on your discovery call. The aim is to turn a vague quote into a clear, written scope you can compare across providers—no surprises later.
Scope & deliverables
- What’s included, every month? Posting, reconciliations, VAT preparation and submission, management accounts within seven working days, AR/AP chasing, payment runs, month-end journals (accruals/prepayments/WIP).
- What’s excluded or charged extra? Clean-up/catch-up work, multi-currency, CIS returns, confirmation statement, year-end journals, Companies House filings.
- Can you show a sample management pack? P&L, balance sheet, cash summary, aged AR/AP, KPIs, short commentary.
Volumes & pricing (where creep happens)
- What monthly volumes is this price based on? Bank lines, sales invoices, bills/receipts.
- Is there a cap or overage rate? If we exceed those volumes, what exactly happens and how much will it cost?
Software, licences & pass-through fees
- Which ledger plan is assumed? (e.g., Xero/QuickBooks) and why that tier?
- Are any bank feeds chargeable, and who pays?
- Which capture/approvals tools are included? (Dext/AutoEntry etc.) How do credit bundles/overages work if we spike? If we pause, do credits expire?
Month-end reporting timetable
- When do we get management accounts? We expect within seven working days after month-end, can you commit to that in writing?
- What’s your day-by-day close plan? AR/AP cut-offs, bank recs, journals, review and sign-off.
VAT & compliance
- Who prepares and submits VAT? Confirm MTD-compatible software and responsibilities.
- What’s your process to avoid late filings/penalties? (Points regime.)
- Who handles the Companies House confirmation statement and the statutory fee?
AR/AP & working capital
- Is credit control (debtor chasing) included? How often will you chase (e.g., weekly), on which days, and what targets will you commit to (e.g., reduce debtor days by X)?
- How do supplier runs work? Approvals, frequency, fraud controls.
Clean-up & steady state
- Is there any catch-up/clean-up needed? If yes, give us a separate project price and a clear definition of steady state the monthly fee assumes.
Multi-currency & sector extras
- Do we need multi-currency now or soon? If yes, confirm the plan uplift and any extra reconciliations/revaluations.
- Construction (CIS)? Who files returns and on what timetable?
Data, access & exit
- Who owns the data and exports? Confirm formats and timing before cancellation.
- What access do we retain on exit? (e.g., read-only window; reactivation if needed.)
Service & change control
- Who is our named contact and response time?
- How do price reviews work? Trigger points (volume spikes, scope changes), notice periods, and approval process.
Quick reference table (what good looks like)
| Ask | Why it matters | A good answer sounds like… |
|---|---|---|
| “When do we get reports?” | Avoid quarter-end tidy-ups and cash/VAT surprises. | “Within seven working days every month; here’s our day-by-day close plan.” |
| “What volumes is this price based on?” | Stops overage shocks. | “Priced at 600 bank lines / 350 sales / 500 bills; overage is £X per 100 items.” |
| “Which apps and who pays?” | Bank feeds & OCR credits often hide fees. | “Xero [plan], Dext [bundle], bank feed fee for [Bank] is passed through at £X/m.” |
| “Is VAT prep & submit included?” | MTD requires specific software & process. | “Yes, prepared and filed via [software]; you approve before submission.” |
| “Clean-up vs steady state?” | Keeps one-off work out of the monthly fee. | “Clean-up is a fixed project of £X; steady state starts the month after.” |
| “Data ownership and exit?” | Prevents lock-in at switch time. | “You own the data; we export [formats] and provide read-only access steps.” |
Related guidance for next steps
- Pricing detail and inclusions: Bookkeeping Outsourcing Costs UK (2025/26).
- Who should own what each month: Bookkeeper vs Accountant vs Finance Manager (UK).
- If you prefer one team end-to-end: Outsourced Finance Team / Virtual Finance Office (UK).
- Keep cash predictable: 52-week rolling forecast and Cashflow forecasting services.
- People costs & add-ons: Payroll outsourcing costs UK (2025/26) and DIY vs outsourced payroll.
FAQ (plain English)
Is VAT filing part of bookkeeping?
Not always. You’re required to keep records and file via MTD-compatible software, so confirm who prepares and submits each return and what software they’ll use. GOV.UK
Why did we get a separate “clean-up” invoice?
Monthly fees assume “steady state.” Backlogs and errors are a project (one-off). Ask for a separate estimate and a written definition of “steady state.”
What’s with extra bank feed charges?
Some banks charge for the feed; Xero passes that on. It’s small but not usually in the headline price. Xero
Do we need multi-currency on day one?
If you have (or expect) any FX, budget for the multi-currency tier now; it’s not on entry plans (Xero) and in QBO it’s only on Essentials/Plus+. Xero Central
Is CIS included?
Often not. Many ledgers treat CIS filing as an add-on or separate service. Price it monthly if you’re a contractor. Xero
What happens to our data if we leave?
QBO: read-only for 1 year after cancellation; Xero: data is archived ~7 years but you may need to reactivate to access. Plan your exports before cancelling. QuickBooks
Your Next steps
Want a quote with no hidden fees? Book a 20-minute planning call, we’ll scope your volumes, confirm app costs, and map a month-end reporting timetable that lands within seven working days.
Prefer DIY first? Grab the DIY Bookkeeping Checklist (UK 2025/26)