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How much does accounting cost for an entrepreneur reviewing financial documents?

The first question every entrepreneur asks when looking for an accountant is "How much does it cost?" It's the wrong question, but for a reason that has nothing to do with money.

In Albania there is no accepted definition of what a monthly accounting service includes. Two businesses paying the same price can receive completely different services. One gets the tax returns and nothing more. The other receives the filings, invoice review, preparation of statements, and a monthly call to discuss performance. Therefore, comparing prices without knowing what you're comparing provides no information.

This article turns the question on its head. First, it clarifies what a monthly accounting service should actually include, broken down by what's done each month, each quarter, and once a year. Then it explains what drives the price up and what drives it down. At the end, you'll find a checklist you can use to assess within five minutes whether you're getting what you're paying for.

How much does accounting cost and why price alone isn't enough

Accounting is not a product with standardized content. The law No. 25/2018 “On Accounting and Financial Statements” It establishes the obligation to maintain accounting records and prepare the statements. It does not specify what the person who maintains them must do for you.

Here the gap arises. The legal obligation always rests with the business, not the accountant. If a filing is submitted late, the fine is yours. Therefore, a cheap service that covers only the minimum isn't a cost saving. It's a deferred risk.

We encounter this scenario every time a new client comes in with an open file from last year. The monthly fee was low. The cost of fixing it turned out to be higher than a full year's savings.

The good news is that the difference is easy to see if you know what to look for.

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What does a monthly accounting service include?

A proper service is divided into three frequencies. Some things are done every month, some every quarter, and some once a year. When an offer mentions only the monthly frequency, the rest is usually billed separately or not done at all.

Every month

Recording sales and purchase invoices in accounting, in accordance with the fiscalization system. Ensuring that every issued invoice has been processed and that every received invoice has been confirmed.

Preparation and delivery of VAT declaration for the entities in the scheme, together with the sales and purchase books.

Preparing the payroll, calculating net wages, and income tax and the contributions, as well as the submission of the relevant declaration.

Recording the cash and bank, and reconciling them with the bank statements.

A brief report for you: how much you've sold, how much you've spent, how much you have to pay, and how much you have to receive.

The last point is the one most often missing. Without it, you're paying for legal compliance, not for information.

Every quarter

Reconciling the main accounts and clearing discrepancies before they accumulate.

Monitor both known and unknown expenses so you don't end the year with surprises on your income tax.

Verification of thresholds. Turnover is compared to the VAT registration threshold and to other thresholds that change your tax regime.

Calculation or review of prepaid income tax payments, according to the rule applicable to your size.

Once a year

Inventory and its reconciliation with accounting.

Year-end closing and preparation of financial statements in accordance with the standards applicable to your entity.

Annual statement of income tax.

Submission of financial statements to the QKB, when the entity has this obligation, together with the assembly's resolution. Please note that the requirement is not the same for all categories of entities, so it's worth clarifying with your accountant which category applies to you.

What increases and what decreases the price

The price doesn't depend solely on the fee, as is often thought. It depends on the amount of work and the risk. These are the six factors that really drive it.

Revenues. Business turnover is a direct indicator of the complexity of the business, the value the business derives from the accountant, and the time required.
Number of invoices. This is the main factor. A business with 30 invoices a month and one with 600 require completely different amounts of time, even if their revenue is the same.
VAT registration. The VAT scheme adds a monthly return, two ledgers, and ongoing compliance monitoring. Moving from outside the scheme into it significantly increases the burden.
Number of employees. Each employee involves payroll, contributions, transfers, leave, and reports. Five employees take more time than five clients.
Sector. Construction, retail, restaurants, and transportation each have specific rules and documentation. The low-invoice services sector is simpler.
Cross-border transactions. Imports, exports, foreign-currency invoices, and payments to nonresident suppliers involve exchange rates, withholding tax, and double taxation avoidance agreements. This requires specialized knowledge.
The condition in which the documentation arrives. This is the factor that lowers the price, and few businesses know it. Documentation submitted regularly and in full cuts the work significantly. The opposite is equally true. A file that arrives disorganized at the end of the month increases the cost for everyone.

For a reference point, the monthly fee for a small business outside the VAT scheme, with no employees and few invoices, typically starts at [insert indicative figure] lek. For a business in the VAT scheme with several employees, it rises to [insert indicative figure] lek.

In-house or external accountant

The most useful comparison isn't between two external offers. It's between the external service and the actual cost of an in-house economist.

Let's take an economist with a gross monthly salary of 80,000 lek. The cost to the employer doesn't end with the salary.

Social security and health insurance contributions at the employer's share are added to the gross wage. At the current rate of 16.71%, this amounts to about 13,360 lek per month. The monthly cost rises to around 93,360 lek.

On an annual basis, this amounts to about 1,120,320 lek. Add in paid annual leave days, the computer, the accounting software, and training. The actual annual cost easily exceeds 1,200,000 lek.

A monthly subscription of 30,000 lek gives 360,000 lek per year. Even the most comprehensive service level, at 60,000 lek per month, yields 720,000 lek per year, which is about 480,000 lek less than a single employed economist. The difference is not small, and it's not the only saving.

The employed economist goes on leave, falls ill, and one day leaves. His knowledge goes with him. An accounting office works as a team, so the service doesn't stop and the knowledge remains.

The opposite applies when the business grows too large. At a certain point, an in-house financier becomes essential. But then he handles financial management, not invoice entry.

What should be written in the contract?

Most disputes don't arise from the price. They arise from unwritten expectations. Therefore, the contract must specify six things, and all of them are simple to request.

First, the list of included services, divided by monthly, quarterly, and annual frequency.

Secondly, what is billed separately: the registration of a new employee, the opening of a secondary activity, assistance during a tax audit, or the adjustment of prior years.

Third, the deadlines on both sides: by when you must submit the documentation and by when the accountant must file the returns.

Fourth, who is responsible if a statement is filed late due to the accountant's fault?.

Fifth, who owns the data and how it is handed over if the relationship ends.

Sixth, how do you communicate and how long does it take to get a response?.

Here's a simple phrasing you can use as a starting point for the fourth point.

If the declaration is not filed within the legal deadline due to the service provider's action or inaction, and when the necessary documentation has been submitted to him within the deadline specified in Article [X], the service provider shall bear the penalties imposed on [name of the entity] for this reason.

What you shouldn't accept

Some practices are still widespread, but none of them is normal.

Lack of a written contract. The oral agreement works until the first problem arises.

Do not provide your credentials. Your e-Albania and tax portal account is your business's, not your accountant's.

Questions are not allowed. You have the right to know what is being stated in your name.

Submission of data as a condition for payment of outstanding amounts. The accounting data belongs to your business.

Silence until the deadline. If you only learn about an obligation on the day it's due, you don't have an advisor.

Checklist

Answer with yes or no. It takes about five minutes.

Do you have a written contract that specifies what's included and what's billed separately?.
Do you receive a short monthly report on sales, expenses, liabilities, and collections?.
Do you know how much you have to pay next month before the due date?.
Has anyone informed you this year about a legal change that affects your business?.
Do you have your account credentials for the government portals?.
Do you know if your business is approaching the VAT registration threshold?.
Were you told which expenses are recognized and which are not before you incurred them?.
Do you get a response within one business day when you ask something?.

If you have four or fewer positive responses, you don't pay much. You pay for half the service.

Frequently asked questions

Does the price change if my business is inactive for a month?

Usually yes, but not down to zero. Even with no turnover, monthly returns must be filed and accounts kept. Many offices apply a reduced fee for periods of inactivity. Be sure to request this explicitly from the outset.

How much does it cost to switch from the previous accountant?

The transfer itself shouldn't cost anything. What might cost is fixing the poorly closed periods. Therefore, request an estimate before you start, not after the work has begun.

Should I give my accountant my credentials?

You grant them access, but the account remains yours and you change the password. The accountant must work with granted access, not with an assumed account.

Why do two offers for the same business differ so much from each other?

Because they cover different work. Compare them by putting the list of included services side by side, not the price. In most cases, the difference becomes clear immediately.

Do I need an accountant if I'm a small business with few invoices?

The obligation to maintain accounting records and file returns does not depend on size. What changes is the volume of work, and therefore the fee. For a business with few invoices, the monthly cost is low, and the risk of an error is much higher than that cost.

What happens if the accountant makes a mistake?

The obligation to the administration remains the business's. Therefore, it's important that the contract specify the service provider's liability when a delay is caused by them. Without this clause, the entire cost of the mistake falls on you.

Can I change the package later?

Yes, and that's normal. The business changes, becomes VAT-registered, hires employees, or launches a second line of activity. Make sure the contract allows for switching from one package to another without penalty.

Cheap accounting that leaves gaps costs more than the savings you gain, because fines and fixing poorly closed periods always fall on the business. We cover all three cycles—monthly, quarterly, and annual—with a clear report every month and written contractual responsibilities, all included in the monthly subscription.