Accounting Fees For Tax Return

Hi Everyone,

As everyone is probably getting ready to do their tax returns for the last financial year, I just wanted to get an idea of how much it would cost for an accountant to do a tax return for someone with a couple of properties. What price is generally considered average and what price is generally considered quite expensive?

Thanks,
Proper Property

 

About $5k sounds about right.

 

We pay $750 total for the two of us with 5 IPs. $5k sounds excessive unless there are complicated structures involved.

 

That's just the GST component right?

OP - it's a tough question to answer. Pretty sure mine would charge around $700 which some would find excessive but I value her service throughout the year too so happy to pay a bit of a premium.

Cheers

Jamie

 

As the above have mentioned, its really hard to say without more information. What sort of information are you going to hand over to your accountant? Is it a detailed spreadsheet with a summary page which just needs to be input or is it a folder for each property and the accountant has to sort through all the paperwork?

 

It would be a spreadsheet that summarises all of the capital costs, expenses and rental income for each property.

 

$5k Does seem very excessive perhaps an extra zero got added on some how, I just looked up my total accountancy fees for last year $2900 included Quarterly IAS and BAS, 3rd quarter tax revue, end of year financial report( including 12 properties) and tax lodgement for 3 returns, 2 personal and one business, sending onfo to and dealing with brokers, two, one hour meetings and regular invaluable advice over the phone probably average 2x a month. I don't give my accountant folders on each property just give him all the receipts and invoices all the council Rates notices to-gether all the water rates notices together, all the maintainence notices together etc. I sign a form giving him access to all my bank accounts and any transaction are coded and categorized, its all sorted out automatically. He actually went out on his own after working for a large firm but said he couldnt work there as he was asked to rip people off. Accountants are charging to do things the old way when much easy quicker ways are being used.

 

Do you know why your accountant charged $2900 ? or $5K etc ?? Important you ask them how they arrived at the cost. What did they do ? How long did it take ? What issues were encountered ? What is the charge rate ?

I have clients who may think $2900 is cheap and would love that sort of fee and others who would collapse if I gave them the invoice. The number isnt as important as the value. Most important is what are you asking them to do ? Can you do it differently to save $ ?, Is there a better way ?

I can do two tax returns with 5 IPs for say $440 based on reasonable summaries and general tax advice etc . But if they hand me a pile of papers and expect me to add it all up and split it between each IP and work it all out I can assume them it wont cost that. Will cost far far more. All my clients know that and I actually want them to get great value. My aim is to make the completion a point of discussion and advice / guidance rather than me charging to add up numbers and fill in boxes. They could arguably do that themselves.

Unfortunately some accountants are poor communicators. Its that stereotype that gets labelled but there is a element of truth. All the good communicators are very busy people.

 

Mine is $660 for personal return with numerous IP's. Plus $750 per trust return. I do all the costs summaries so its really a reconcile and balance for him

 

Am yet to do the financial year just gone by, but my tax accountant charged me $240 for a personal return with 2 IP's. He sends me a checklist every tax time and I just fill in the details, bring it in to him and he does it in about half an hour to an hour. I've also called him a few times through the year just asking tax questions, which he is happy to take.

 

Hi Kael,

That is a pretty good price. Who is your accountant and do they have a website?

 

My wife and I paid $175 each last year for personal and our 1 IP. Also I have rang him during the year to ask questions. He's an IP investor himself so I'll be using him again this year.

 

I paid around $5000 for my personal tax return, two companies and one family trust. I have one IP under my name and the family trust has six properties. My family has another company which paid around $4000. The family company has a block of retail shops.

 

We pay $200 for personal and about $2k for smsf and around $660 for companies!

 

Hey mate, I'll private message you his details.

 

Paid $220 today for mine... 3 IPs and my work. Seems a fair price, but im OCD and have it all laid out for her, very organised and rattle it off. If I didn't have IPs id do it myself .. better to be safe than sorry now though

 

Hey Kael, I'm keen to have a chat to your accountant too. Cheers, P

 

For 1 IP and personal tax return, I pay $200. I keep very good records that my accountant transcribes into his system minimising his workload and his subsequent fee.

 

I just did returns for the 2017 year for three new clients to fix the mistakes of the former accountants. So the fee someone charges is not a reflection of quality.

eg - Underclaimed depreciation, overclaimed travel costs, wrong treatment of allowances, missed property deductions and so on.........

 

Did you say "you have access to my bank accounts , take out what you think is fair for your fee " lol