Is our accountant ripping us off?

[Scouter]

Hi

Re: Accountant fees for completing 2007 ITR's (company & 2 personal ITR's)

I'm not sure what accountant fees are reasonable these days so thought I would lay it out here and get a bit of feedback. But I have to say I think we are being taken for a ride.

My hubby is a contractor and has set up a company, he lodges his his own BAS each quarter and prepares the trial balance for the accountant each year.

I work full time and hubby pays me a small wage to help out with "company book work".

We have 4 managed investments, no kids, trusts, or IP's.

These are the accountants fees:

Company $1485. Accountant comments - This is for Prep of financial statements, prepare 2007 PAYG Payment Summary and Statement for the year & lodging documentation with ATO.
Preparation and electronic lodgment of the Company's 2007 ITR
Advise you on tax deductions available on changing vehicle used for business purposes.

Hubby personal tax $462

My personal tax $190

We are both having to pay some tax back. The accountant bill for 2006 financial year was around the same but we thought it was higher because there were some problems being ironed out involving company set up. This year everything was straightforward, accountant had all our documents and didn't have to chase us up for anything.

We are going to ask for a more itemised account next week because for a start I don't understand why our personal tax ITR's fees were different.

We purchased an IP in the last 6 mths and couldn't imagine what how much our accountant would charge once an IP was added to the equation.

Please tell me these fees aren't normal and can you give me an idea of what your accountant charges?

Can you recommend any good tax accountants in Brissie? We'll be moving on.

Thanks, any comments/suggestion welcome.

Cheers
Scouter

 

[jingo]

Fees look ok.

You will pay higher fees if you have a company than for personal tax returns.

Regards Jason.

 

[coastymike]

Fees are more than reasonable. Our fees start at $3,300 and we don't take on clients who are smaller than that. Obviously this is for a group of entities.

You get what you pay for. Accountants have retired and left the profession in droves. High net worth clients are wanting more and more advice as their businesses expand here and overseas.

 

[Xenia]

Geez wish mine were that cheap. We always have a few more zero's added to the end for each of our companies. My husband is the lowest income earner in our family and his personal tax return fees are still in the $10,000 range!

Then again, if I had to sit there and go through everyones personal finances one by one all day I would want to be paid that much too!

 

[Pushka]

They look OK. Ours this year was around $3,500 which included our personal returns, main company return, and a couple of (non active) Trust returns. Our personal returns were around $500 each but they are put into the company invoice. Our Super Fund bill was for around $2500 (which equates to around .4% of the Fund assets) and which included the audit fee. Everything we give the accountant has been put through MYOB so it is all reconciled; all of the share transactions are put through MYOB as well as a share portfolio planner that also calculates CGT and dividend and Imputation Credit; so he really just tidies it all up and puts it into ATO format.

Xenia, your fees seem way high though; on the basis of a $10,000 accounting bill I would want to be earning well around 2 million dollars a year for the same % fees!

 

[pursefattener]

Scouter , your accountant is not ripping you off IMO and I,m not sure what you would gain if you moved to a new firm etc .

I think you need to think of your accountant as more of a valued part of a team around you . Build a repore with him/her ....

My financial affairs are complex and i pay close to 10k a year . I think that is relatively cheap considering all the work and hassles I create .

I would not want to be an accountant and I didn't like maths at school much . I agree with Xenia .

 

[Player]

Hi Scouter,

these fees are reasonable. They are not cheap, however nor is the accountant ripping you off.

If you are not satisfied with the service or the advice by way of errors that cost you, lack of pro-activity (although you should take responsibility for this also) to legally minimse tax and optimise your structures, then by all means move on. If you are happy with the service, the price(s) you quote are average, so don't make a decision based on that.

Cheap is not always best.

 

[PrimeCommercial]

Agree with whats been said, they look very reasonable.

My company acct cost $3500 p/y since I changed to new/better accountant.
Last one was closer to $6000 p/y and did absolutely nothing for it.

 

[Aaron Sice]

i have a business, trust, 2 personals and an SMSF. trust me your return prep bills sound fine.

 

[peastman]

One way to reduce accountants fees are to do as much of the bookwork yourselves as possible. If you tell the accounant to do it you will be paying over $100 per hour for a junior to do data entry. Use the software your accountant recommends and keep accurate records, dont just bring him a shoebox or reciepts.

 

[josko]

I have a business, 4 trusts, and 2 personal tax returns = @ $10,000

 

[Xenia]

Xenia, your fees seem way high though; on the basis of a $10,000 accounting bill I would want to be earning well around 2 million dollars a year for the same % fees!

unfortunately we don't make anywhere near that! We are just busy and out of control and accountants are expensive book keepers when everything is a mess. It's our own stupid fault and I don't blame them for charging this

 

[handyandy]

We have just been billed $14k - this includes 1 x Smsf, 1 x HDT, 2 x Dt, 3 x pty's, various corporate trutees and 4 personal returns.

During the year we are charged ASIC filling preparations of about $100 entity and any transactions that I instigate such closing down company, starting new trustee companies etc basically well and truly outside the norm.

In addition during the year I would speak to them at least ones a month as much just to touch base as discuss a problem/issue.

Cheers

 

[evand]

Depends how much prep work you do for your accountant. No one can answer accurately without knowing that.

If you are doing all prep work and hand him a complete, reconciled MYOB disk you are being overcharged.

If you hand him a box of papers with nothing done you are getting a bargain.