All Topics / Legal & Accounting / Accounting Costs

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  • Profile photo of JETTJETT
    Member
    @jett
    Join Date: 2005
    Post Count: 31

    A query for the experienced. Just recieved the bill for last years tax preperation. Is $1600 to much to pay for the preparation of a company that is a trustee of a family tax return. Only built and sold one property that year, Gst registered.

    Profile photo of trajiktrajik
    Member
    @trajik
    Join Date: 2005
    Post Count: 102

    In general I would say that is on the high side, usually between $600-$1500, but it depends on a few things.  Most accountants charge on an hourly rate so if you know how much their hourly rate is then you can see how long they are saying it took.  

    Did they do your individual tax returns as well (how many), what type of record keeping did you provide.  Did they ask many queries of you.  Did they give you any advice about maintaining tax records or reducing your tax in future.   Were you happy with the service.  Building & selling a property is more complex than a standard rental.  Do they also act as the ASIC agent, and did they charge for this separately.  Did they also prepare minutes for the trust and company.

    These are some of the issues that will determine the cost to you.

    Hope that helps.

    Ross

    Profile photo of JETTJETT
    Member
    @jett
    Join Date: 2005
    Post Count: 31

    Thanks Trajik,

    1. Two personal tax returns charge seperatly $250 each
    2. All info was provided on spread sheet format. I am I sure did most of the work for them.
    3. Unsure of hourly rate but willfind out.
    4. No queries
    5. No advice given
    6. I am happy with there work (a part from the above, no advice) but seem to be quite an expensive firm, I use there solictors as well.
    7. They are our ASIC agent and prepared minutes and charged seperatly for this

    What do you think?

    Cheers Jett

    Profile photo of trajiktrajik
    Member
    @trajik
    Join Date: 2005
    Post Count: 102

    It does seem expensive, but when it comes down to it they can charge whatever they like, but whether or not you return next year it's up to you.   Many larger firms won't spell it out in black and white, but they are not interested in smaller clients and so charge as much as they can get away with, and if the client leaves then they are not too fussed.  They got a good return on the work performed.   There is a general shortage of accountants, in proportion to available work, and so they naturally become selective, I suppose it is their right to choose how they want to present and market their services.

    Profile photo of vwc998vwc998
    Member
    @vwc998
    Join Date: 2008
    Post Count: 1

    I am accountant and that amount for the work they have done actually seems reasonable. You also have to remember that just because you spell out everything on a spreadsheet doesn't mean you have done most of the work for them.  They will still check everything and make sure all the data on the spreadsheet is correct. Also generally, accountants will charge about $100 an hour if an accountant with a low level of experience or qualifications does your work and up to about $200 an hour if an accountant of a high level of experience or qualifications does your work.

    Hope you find this useful.

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