The cost of tax accountant - is this reasonable?

[EN710]

Hi SS-ers,

It's tax time and I'd like to quickly check on whether the fees quoted by my current tax accountant is reasonable. The company is specialised in property (most SS-ers know which one).

The details:
1. This will be tax return for me and my partner - we own one investment property settled this financial year
2. Fees quoted $300 per person (so total $600) for tax return with one property

I belive our tax return is quit straight forward (no trust etc.)
The fees (i.e. $600 for 2 people) seems quite hefty, but this is my first time having a tax return for property, so I'm not sure whether it is or it isn't.

Any thoughts will be great!

 

[MRO]

H&R Block or ITP will probably do for $120 each but they will probably get it wrong.

Seems on the high side but not too far out, most would probably just pay it and know they are getting a good service.

Alternatively you could spend 30 minutes of your own time, jump on etax and save yourself $600. Spend it on a night out with your wife. 1 rental property and standard employment group cert isn't 'rocket surgery'.

 

[sashatheman]

I am in a similar situation. I have been doing my wife's and my own tax returns in the past, however this year is the first year that we have an investment property as well as parental leave payments.

I considered getting one of those boutique IP focused accountants to do our tax return, but in the end I just couldn't justify the fees when I only have 1 IP under my belt and not planning to get another one for a few years. Of course I could be wrong and losing out on some potential returns on my tax return.

In the end I went with an a standard tax accountant I found on the internet and who seemed reasonable in what he knows and his fees.

I did get a professional depreciation report done on the IP, and will include it with the other information relating to the IP.

I am still waiting to receive all the group certificated etc, so time will tell how my experience will be.

 

[Joe D]

Whilst you should know what is involved in doing your own tax return, I would always recommend using an accountant (not H&R Blockheads).

Remember the cost is tax deductible and if they can't save you at least their fees then they aren't much chop.

They should be able to advise and optimise all your deductions (even ones you weren't probably aware of beforehand.)

Think small and you will stay small.

 

[EN710]

H&R Block or ITP will probably do for $120 each but they will probably get it wrong.

Seems on the high side but not too far out, most would probably just pay it and know they are getting a good service.

Alternatively you could spend 30 minutes of your own time, jump on etax and save yourself $600. Spend it on a night out with your wife. 1 rental property and standard employment group cert isn't 'rocket surgery'.

Thank you for your response - I am considering to do it myself... though as this is my first time, it will probably take several hours to make sure I do it right - which I don't mind, but spending hours on it doesn't guarantee it will be correct either


I might try looking for regular tax accountant as sashatheman... I've got all the relevant documents, including depreciation schedule etc.


and P.S. I'm female, but yeah, if I can manage to save cost I might use it to eat out (or local holiday... hahaha)

 

[EN710]

Whilst you should know what is involved in doing your own tax return, I would always recommend using an accountant (not H&R Blockheads).

Remember the cost is tax deductible and if they can't save you at least their fees then they aren't much chop.

They should be able to advise and optimise all your deductions (even ones you weren't probably aware of beforehand.)

Think small and you will stay small.

Agree, better safe than sorry. Not that I want to go cheap (that will help... but not in the expense of quality), just want to make sure I'm paying a fair cost for the service

 

[vaughan]

Thank you for your response - I am considering to do it myself... though as this is my first time, it will probably take several hours to make sure I do it right - which I don't mind, but spending hours on it doesn't guarantee it will be correct either

Do it yourself (for the experience) but don't lodge the return. Get an accountant to do it and compare the results.

 

[pinkboy]

Do it yourself (for the experience) but don't lodge the return. Get an accountant to do it and compare the results.

Does she get a degree if she successfully gets a higher return than the accountant achieves?


pinkboy

 

[MRO]

Remember the cost is tax deductible and if they can't save you at least their fees then they aren't much chop.
QUOTE]

Accountants don't work on a success fee and on a basic return with depreciation schedule already done an accountant would probably find it very hard to get anymore deductions than you would find yourself.

Good accountants don't have a magic wand or secret stash of deductions that other accountants wouldn't have. The value of a good accountant is when things get a bit trickier or you want to structure or ramp up your activities. On a basic return, IMO, you are just paying someone to fill out the paperwork for you.

 

[jackbak]

How much they charge is irrelevant to a certain extent, it's how much they are going to save you compared to another accountant that's important.

 

[sashatheman]

Do it yourself (for the experience) but don't lodge the return. Get an accountant to do it and compare the results.

I had that in mind as well.

 

[coastymike]

It is probably us as we charge similar pricing to that. Keep in mind the cost includes 4, 15 minutes chats per year so really an hour worth of time as well.

We find most clients ask questions during the year and want a quick response so probably 95% of our clients use up this time during the year.

 

[s0805]

2. Fees quoted $300 per person (so total $600) for tax return with one property

does this include gst? most of the accountant fees are quoted without gst..u might want to check that

 

[MRO]

It is probably us as we charge similar pricing to that. Keep in mind the cost includes 4, 15 minutes chats per year so really an hour worth of time as well.

We find most clients ask questions during the year and want a quick response so probably 95% of our clients use up this time during the year.

Sounds like a great idea. If this is included then well worth it. The chats during the year are a lot more valuable than the form filling at year end.

 

[Jamie M]

It is probably us as we charge similar pricing to that. Keep in mind the cost includes 4, 15 minutes chats per year so really an hour worth of time as well.

We find most clients ask questions during the year and want a quick response so probably 95% of our clients use up this time during the year.

Sounds very reasonable to me - especially if it involves the one additional one hour.

I pay a lot more than that for individual returns - and my business accountancy costs are quite high. However, I've got a great accountant who's super responsive and excellent at what she does so I don't mind the cost.

Cheers

Jamie

 

[MelbGal]

Hi SS-ers,

It's tax time and I'd like to quickly check on whether the fees quoted by my current tax accountant is reasonable. The company is specialised in property (most SS-ers know which one).

The details:
1. This will be tax return for me and my partner - we own one investment property settled this financial year
2. Fees quoted $300 per person (so total $600) for tax return with one property

I belive our tax return is quit straight forward (no trust etc.)
The fees (i.e. $600 for 2 people) seems quite hefty, but this is my first time having a tax return for property, so I'm not sure whether it is or it isn't.

Any thoughts will be great!

I think you could easily do this yourself but that's if you enjoy poring over the internet to confirm if you are doing things correctly and maximising your return. If you don't mind this then try it, it's actually easy. I have done my own returns and mine sound more complicated than yours.

If on the other hand you don't have the time, then pay this guy remembering that you can claim this as a deduction next year.

I recently used a tax agent for the first time but that is because I had gotten so busy that I no longer had the time and needed to catch up 3 returns! the price you have quoted seems OK, not the cheapest but not the most expensive either. You could ask him if he is charging you full price for each IP - given they are both the same property and he only has to input data once he might be able to reduce this portion of the fee.. that's what my agent did.

 

[EN710]

It is probably us as we charge similar pricing to that. Keep in mind the cost includes 4, 15 minutes chats per year so really an hour worth of time as well.

We find most clients ask questions during the year and want a quick response so probably 95% of our clients use up this time during the year.

It is not houseofwealth, but would be lovely to have that cost with 4x15 mins chat

does this include gst? most of the accountant fees are quoted without gst..u might want to check that

Uh oh... probably not ... I will confirm.

Does she get a degree if she successfully gets a higher return than the accountant achieves?

That's a very cheap tuition fees...

I think you could easily do this yourself but that's if you enjoy poring over the internet to confirm if you are doing things correctly and maximising your return. If you don't mind this then try it, it's actually easy. I have done my own returns and mine sound more complicated than yours.

If on the other hand you don't have the time, then pay this guy remembering that you can claim this as a deduction next year.

Will trawl through the mighty Internet today and decide (since my accountant say he will be very busy within the next 2 weeks hence will take longer)

I recently used a tax agent for the first time but that is because I had gotten so busy that I no longer had the time and needed to catch up 3 returns! the price you have quoted seems OK, not the cheapest but not the most expensive either. You could ask him if he is charging you full price for each IP - given they are both the same property and he only has to input data once he might be able to reduce this portion of the fee.. that's what my agent did.

That's a good point (re asking if this is the full price per person for the IP).

 

[EN710]

Alright - email sent to the accountant.

Fingers crossed they will respond well and I will get some discount. It's a bit late at night and I don't have the energy to make the email less direct...

 

[EN710]

Got a discount from... $300 to $275 per person.
I also confirmed that this includes GST.

 

[MelbGal]

Got a discount from... $300 to $275 per person.
I also confirmed that this includes GST.

Congrats - always pays to ask!