Accounting Fees
- Thread starter MTR
- Start date
My accountant is NOT a tax or property specialist so keep that in mind. I have confirmed anything he has suggested with other people.
He charged us $800 last year to do 2 individual returns and a company return for the 2 IPs. We normally have 2 1hr sessions with him and then he goes off and lodges the returns. Seems pretty fair and he doesn't charge if I call up and ask a question.
He charged us $800 last year to do 2 individual returns and a company return for the 2 IPs. We normally have 2 1hr sessions with him and then he goes off and lodges the returns. Seems pretty fair and he doesn't charge if I call up and ask a question.
When I was a tax accountant 11 years ago (4 years experience) I used to charge $180 an hour. $250 is probably about right for a suburban accountant.
We used to bill by the 6 minutes so if you called me during the day I would write down your name and add a charge to your account at the end of the day. That 12 minute phone call would cost you $36. If I picked up an ASIC letter sent to you and reviewed it and sent you an email about it, there goes another $36. It quickly racks up.
To cut costs with accountants you really need to manage them. Specify exactly what you want them to do so no extra charges go on. When you hand them a fistful of receipts rather than an excel summary with the receipts attached you need to know they are going to charge you $250 an hour to add up receipts you could have added yourself for free.
Some costs are just unavoidable and are the cost of doing business..
We used to bill by the 6 minutes so if you called me during the day I would write down your name and add a charge to your account at the end of the day. That 12 minute phone call would cost you $36. If I picked up an ASIC letter sent to you and reviewed it and sent you an email about it, there goes another $36. It quickly racks up.
To cut costs with accountants you really need to manage them. Specify exactly what you want them to do so no extra charges go on. When you hand them a fistful of receipts rather than an excel summary with the receipts attached you need to know they are going to charge you $250 an hour to add up receipts you could have added yourself for free.
Some costs are just unavoidable and are the cost of doing business..
How can you accountant (tax agent) not be a tax specialist, that is the job of a tax agent. Almost all property related tax queries are basic knowledge for tax accountants and should be part of their basic training. Property questions as well.
If you are getting a company return for less than $1000 you are doing well.
Sorry, wording not great, of course he is a tax agent but he covers a wide range of taxation and does not specialise in Property Tax although he has been able to answer most of our questions. We got additional advice when setting up the trust and Co. to make sure it was the right structure for us.
I like my accountants model. I pay a monthly fee (which works out to the same as what I was paying for my annual tax returns anyway) and this includes 4x questions per year (email or phone, no specified time limit, but say under 30 mins). The monthly fee covers my ITWV and all returns.
Personally I don't ask too much of him as I'm pretty informed about tax myself. The idea here is that extra charges will only apply for complete newbies who take up lots of time asking basic questions, while I feel comfortable asking the odd question if I need to (i.e. odd stuff like can you include the NRAS incentive payment on your ITWV, for example).
Personally I don't ask too much of him as I'm pretty informed about tax myself. The idea here is that extra charges will only apply for complete newbies who take up lots of time asking basic questions, while I feel comfortable asking the odd question if I need to (i.e. odd stuff like can you include the NRAS incentive payment on your ITWV, for example).
I'm a lawyer, not an accountant, but I have moved away from the hourly rate and just charge a fixed fee for everything. I don't charge for emails or stationary or postage etc. Everything is in the fixed fee.
I used to work at a firm which charged similar to MRO's post above. But this is very stressful trying to record everything and then you are always worried about time. I once had to charge a client about $5800 for a standard residential conveyancing based on the hourly fee model.
I used to work at a firm which charged similar to MRO's post above. But this is very stressful trying to record everything and then you are always worried about time. I once had to charge a client about $5800 for a standard residential conveyancing based on the hourly fee model.
Im of the view that hourly billing in many cases is unethical. why should you be rewarded for your inefficiences. It creates an incentive for an accounting firm to take longer to do a job and the client pays for it.
We only do fixed fee agreements at house of wealth and that way the client knows the costs before they give us the go ahead to do their work. If we take longer to do the job then we havent priced it right but the client shouldnt be penalised for us getting it wrong.
We only do fixed fee agreements at house of wealth and that way the client knows the costs before they give us the go ahead to do their work. If we take longer to do the job then we havent priced it right but the client shouldnt be penalised for us getting it wrong.
I don't charge for being stationary either, stationery however is another matter.
It took me 6min to read this. I will invoice you for my mistake at $36.
Sadly the new ATO attitude to a tax agent exercising 'reasonable care' virtually requires the agent to audit client's data unless they have absolute faith in the client's skill and integrity.
This increased compliance cost must be transferred to the client otherwise agents will cease the lodgement function.
Cheers,
Rob
Yes another issue. What other professions charge for materials. I thought was part of the fee. Does a hairdresser say "that will be 100 for my labour, 2 for shampoo, 2 for conditioner, 3 for water usage , etc"
No it is part of their overall fee. Dont know who created that rort.
No it is part of their overall fee. Dont know who created that rort.
Doesn't the client sign the declaration saying that they are declaring the information to be true and correct?
That is only for general law ... totally ignored for sanctions by Tax Practitioners Board etc.
Cheers,
Rob
The problem with my accountant is he quotes me an amount and then the final bill is always at least $2000 above what was quoted, when I ask why discrepancy, his line is always.... "you pay peanuts, you get monkeys", this is wearing thin.
I only have myself to blame if I don't shop it, however its going through all the stuff again with a new accountant which puts me off, I am sure many go through the same scenario.
MTR
My accountant doesn't charge by the hour either.
He must under new laws provide me with a quote before commencing work for me but that is just for the big stuff like doing a tax return or setting up a trust.
I can email or ring him about stuff when I want without repercussion
Steve Wilson at Infront BAS
http://www.infrontbas.com/html/s01_home/home.asp?id=home&dsb=209
He must under new laws provide me with a quote before commencing work for me but that is just for the big stuff like doing a tax return or setting up a trust.
I can email or ring him about stuff when I want without repercussion
Steve Wilson at Infront BAS
http://www.infrontbas.com/html/s01_home/home.asp?id=home&dsb=209
Damn son. That's a lot of extra cash. I would have moved on $2000 ago.
My 2010/11 bill was $200. Basic, no assets.
The 2011/12 bill was $330. Incl. Shares and 1 property.
Am assuming my 2012/13 bill will be $550+ with 3 properties.
13/14 will be more interesting as I will be using trusts and what not.
OK, thanks.
