Cost of Accountant

Thanks Guys for all the replies.

Just to provide some info as there were questions asked:

The 1,200 figure is inclusive of VAT. My wife is in business for 8 years. Accountant's fees have only increased once (that was after the first year).
The amount of work required by the accountant hasn't fallen as the level of business has dropped. The quality of the books seems IMO to be very good and comprehensive.

My tasks involve performing all basic bookeeping duties (Cash Book, Cheque Journal, Purchases Invoice book) i save these on disk and give them to the accountant along with all other information he requires at the end of the year.

The accountant then performs the end of year accounts (A 5/6 page document (Gross Profit - Net Profit - Balance Sheet) and Tax return due.
Accountant also checks PRSI/VAT for end of year (p60 for one employee).

Not sure how long it would take him to perform this 5/6 page document. He has two other young girls whom work for him doing some of the work i believe. i have always thought (maybe incorrectly) that this work was not worth the figure being paid. But again, i'm no accountant..... i think this was due to the fact that i only deal/meet him maybe once/twice per year as i understand exactly what he requires.

I think i might first of all ask him for a price reduction. Also i think i might ring other accountants and see can i get some quote's from them.
 
PDCAT, if her accountant is doing a good job then don't move for a small saving; it could well cost her far more in the long run.
 
PDCAT said:
Thanks Guys for all the replies.

Just to provide some info as there were questions asked:

The 1,200 figure is inclusive of VAT. My wife is in business for 8 years. Accountant's fees have only increased once (that was after the first year).
The amount of work required by the accountant hasn't fallen as the level of business has dropped. The quality of the books seems IMO to be very good and comprehensive.

My tasks involve performing all basic bookeeping duties (Cash Book, Cheque Journal, Purchases Invoice book) i save these on disk and give them to the accountant along with all other information he requires at the end of the year.

The accountant then performs the end of year accounts (A 5/6 page document (Gross Profit - Net Profit - Balance Sheet) and Tax return due.
Accountant also checks PRSI/VAT for end of year (p60 for one employee).

Not sure how long it would take him to perform this 5/6 page document. He has two other young girls whom work for him doing some of the work i believe. i have always thought (maybe incorrectly) that this work was not worth the figure being paid. But again, i'm no accountant..... i think this was due to the fact that i only deal/meet him maybe once/twice per year as i understand exactly what he requires.

I think i might first of all ask him for a price reduction. Also i think i might ring other accountants and see can i get some quote's from them.
Click to expand...

Fee sounds reasonable from the info you've given especially if its inc VAT.

Ask if there is any way of reducing the fee by way of extra work on your own behalf.

Can be messy changing accountants (especially if you are already happy with the work) - would any possible reduction in fee be worth it?

Have you looked for other quotes? I think it would be hard to beat that.

I think your options are
1) do the returns yourself or
2) see what else you can do for the accountant to reduce his fee.
 
I used the online system at www.paylesstax.ie for the first time this year (have paid a similar amount of money as your wife for an accountant for the last 6 years).

Found it really easy to use and also called their helpline to check on a few things I wasn't sure of.

Cost is only €99 (exc vat). As a sole trader I'd definitely recommend it.
There's also an option to pay a bit more to have someone double check everything for you.
 
Hebs said:
I used the online system at www.paylesstax.ie for the first time this year (have paid a similar amount of money as your wife for an accountant for the last 6 years).

Found it really easy to use and also called their helpline to check on a few things I wasn't sure of.

Cost is only €99 (exc vat). As a sole trader I'd definitely recommend it.
There's also an option to pay a bit more to have someone double check everything for you.
Click to expand...

I really can't understand why people use this service - you are paying them for the privilege of doing everything yourself. You have no real certainty that you've done everything right, and even if you pay the extra money to get someone to check it for you, there's no real incentive for them to add any value at that stage, as you're already paying them anyway...
 
mandelbrot said:
I really can't understand why people use this service - you are paying them for the privilege of doing everything yourself. You have no real certainty that you've done everything right, and even if you pay the extra money to get someone to check it for you, there's no real incentive for them to add any value at that stage, as you're already paying them anyway...
Click to expand...

The help is included in the €99. You pay extra to have a tax consultant check everything and submit it to the revenue on your behalf.

They have various calculators included in the forms to help you work out if you're paying the right level of pension, allowances for personal use etc etc. I tried to fill in my tax return myself but didn't know what to put in which box - the paylesstax system guides you through it.

Perfect for the self employed person with simple accounts and no money to pay an accountant with!
 
Hebs said:
The help is included in the €99. You pay extra to have a tax consultant check everything and submit it to the revenue on your behalf.
Click to expand...

Just to be clear on this: they are using the term "trained tax consultant" but they are not using the term "registered tax consultant" which is the recognised tax qualification in Ireland. You could call around to my house for a few hours tomorrow evening and come away as a "trained tax consultant"... ;)

I must stress I don't know it for a fact, but I would be very surprised if the "trained tax consultant" who looks over your tax return if you pay the extra money is actually professionally qualified. Hence the service is cheaper than actually getting a qualified accountant to do your tax return. Next time you're on the phone to them maybe ask them what their qualifications are; I wouldn't be shy about it if it was me... you're depending on them actually knowing their stuff in order for you to be paying the right amount of tax.

I suppose what I'm saying really is that some people aren't cut out for prepping their own accounts etc. AT ALL, and even paylesstax's service won't benefit them hugely - they just need to give their shoebox of receipts etc to a bookkeeper / accountant every couple of months, and leave them at it.

Alternatively, if you are a small sole trader who is up to the task of doing your own bookkeeping, then you may well be able to do the whole thing yourself. Bookkeeping / accounts / tax can be a laborious task for most people, and the benefit of getting someone else to do it is that it frees up your time to do what you are good at - i.e. there's an opportunity cost for the time you spend doing your books that you could have been generating business and earning money. So IMHO the subset of people who actually gain an economic benefit from a service like paylesstax, where you have to do all the hard work yourself (albeit less laboriously than without the service), is probably quite small.
 
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