Accountancy Fees

This Overheads code records the cost of accountancy fees incurred in running the business. As an expense account, it normally carries a debit balance: debit entries increase the balance (recording new costs) and credit entries decrease it (for example, correcting an error or a refund received).

Real-world examples

Sole trader

A fixed annual fee for preparing self-assessment accounts and a tax return, usually billed once a year. £480 (£400 net of VAT) is a debit of £400 to 7602 (Accountancy Fees), a debit of £80 to 2201 (Purchase Tax Control Account), and a credit of £480 to 2100 (Creditors Control Account).

Growing SME with monthly support

A recurring monthly retainer covering bookkeeping review, VAT return preparation, payroll processing and quarterly management accounts — a predictable ongoing cost rather than a single annual bill. £900 (£750 net) monthly is a debit of £750 to 7602, a debit of £150 to 2201, and a credit of £900 to 2100.

Group with subsidiaries

Statutory accounts preparation is far more involved when it means consolidating results across several subsidiaries, eliminating intercompany balances, and completing group tax computations, so the fee is substantially higher and often billed in stages across the year rather than as one invoice. £6,000 (£5,000 net) is a debit of £5,000 to 7602, a debit of £1,000 to 2201, and a credit of £6,000 to 2100.

Commonly confused with

Because code 7601 (Audit Fees) sits right next to this one in Overheads, it's a common mis-posting target. Code 7602 is specifically for accountancy fees, while 7601 covers audit fees — similar in nature, but keeping them separate is what makes the overheads section of your management accounts meaningful rather than a single lumped total.

What a mis-posting here costs you

An error posting to Accountancy Fees won't change total overhead spend, but it will distort the overheads breakdown that's usually reviewed line by line each month to spot cost creep.

Other codes in Overheads