Accountant Fees?

The Pontiac

Hi there.

I started working as a self-employed forestry worker in March, 2011. I had the option to get a C2 or pay tax @ 35% and receive an RCT1 form each month from the principal contractor. I would then claim the tax back at year-end. I opted for this.

So I have all my expenses added up (petrol, insurance, clothing etc) and kept all the receipts. I have all my monthly RCT1 forms which shows the tax paid to the revenue commissioners.

So what would an accountant charge me to calculate my tax liability?

Thanks.

gerrybbadd

I'm sure it would differ from accountant to accountant Ollie. Even though you have all the relevant documents to hand, making the job easy for an accountant, the amounts they charge are pretty high.

The Pontiac

Cheers Gerry. Hate getting ripped off so just trying to determine a 'fair' fee.

coach343

Hi Ollie,

As previously stated, the fee will vary from accountant to accountant. I know one person that was charged in the region of €9,000 in accountancy fees in Dublin and is now getting the same service in Co. Donegal for less than one thousand. This might just be a one off but in general the charge out rates are higher in the capital.

Most accountants charge a certain rate per hour, it can start at €30-€40 per hour for a junior staff member to over €200 for a senior accountant depending on the firm. The most junior person in a Big 4 on their very first assignment with no previous accounting experience or knowledge is charged out at a rate of €200 per hour, I'd hate to think what the more senior accountants are charged out at.

You are certainly doing the right thing by keeping neat records and all receipts. You'd be surprised at how time sorting through bags of information and ringing up banks to obtain bank statements builds up which can add hundreds of euros to an accounting fee unnecessarily. Without knowing the quantity of information you require processing and knowing your location, its hard to estimate a fee. In saying that, it sounds like you have a lot of the donkey work done for any potential accountant so they would generally just be piecing your information together. Therefore, I would expect that you could get a set of final accounts accounts and your tax return filed for roughly €400/€500 plus VAT.

In the current climate, many accountancy firms are agreeing a fee before the work is carried out which they would never have done during the boom. I would contact a few accountancy firms, explaining what you need and see if they will give you a quote.

The Pontiac

Hi Coach,

Thanks a million for your detailed reply. Lots of useful information there that will help me and many other readers of this forum I'm sure.

Thanks again, much appreciated.

Ollie

Ally Dick

Ollie, run a mile if an accountant offers to work for you for a percentage of what he "makes for you" from the revenue. Get a quote before proceeding. I learned the hard way

coach343

Agreed.

I've heard stories about accountants charging clients in relation to amounts the client has in their bank account and not corresponding to time spent working on the client or services provided. I'd definitely recommend seeking a number of quotes.

JCYSHOW

coach343 wrote: »

Agreed.

I've heard stories about accountants charging clients in relation to amounts the client has in their bank account and not corresponding to time spent working on the client or services provided. I'd definitely recommend seeking a number of quotes.

That sound incredible, hopefully the client realised what was going on and told them where to go!
I'm an accountant and we do a mixture of agreeing fees in advance and also charging based on the services provided and time worked, although in this instance usually the client has been given a verbal idea of what it will cost is advance.

backinexile

<Ollie> wrote: »

So I have all my expenses added up (petrol, insurance, clothing etc) and kept all the receipts. I have all my monthly RCT1 forms which shows the tax paid to the revenue commissioners.

Having this done will make a huge difference for an accountant, if you send them your excel spreadsheets along with the physical back up, in a tidy easy to follow manner, (referenced if possible) it will cut down on a lot of the donkey work.

They will just check your receipts and remove anything that should not be allowed.

I know this makes it sound like you are doing most of the work yourself, but the less time the accountant spends on it the better for you.

I would also agree with other posters, tell the accountant what you have already done, and get a written quote, if they charge you more it will more than likely be for something unforseen, and you will know for next year.

The Pontiac

Hi Guys.

Thanks a million for all the info and advice, all taken on board.

Has anyone used this website/service? €149 vat inclusive. http://www.paylesstax.ie/index.html

barneystinson

<Ollie> wrote: »

Hi Guys.

Thanks a million for all the info and advice, all taken on board.

Has anyone used this website/service? €149 vat inclusive. http://www.paylesstax.ie/index.html

If you're VAT registered then the €299 plan will be the only suitable one.

I don't know anything about that crowd, but you do realise that they're charging you for you to do your own bookkeeping, accounts and tax return...?!

It'd be like a painter charging you to sit in your armchair and watch & instruct you as you paint the sitting room...!

The Pontiac

Cheers Barney. Not VAT registered, and you could be correct.

askaboutit

Can anyone tell me what the average hourly rate for an accountant and a book keeper is at present?
Do you need any qualification to call yourself a financial director?

exaisle

In defence of accountants....we quite often don't really know how much time is involved in preparing a client's accounts and tax returns. I would tend to give a rough estimate based on other clients of similar size and record keeping, with an agreement to contact the client if something unforseen crops up which is likely to have a material effect on the original fee quoted.

Also, smaller accountancy practices will tend to have lower overheads and charge-out rates and may be more prepared to agree discount to get you up and running.