Did This Accountant Overcharge ?

E

eirman

Registered User
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My sister set up a small Air-BnB business with 2 units.
This is her only income. She is single with no special circumstances.

I set up a detailed spreadsheet for her first year's accounts.
Every item of income and expenditure was entered and categorised under various headings.
The percentage of household expenses allocated to the business was automatically calculated.
Everything was summarised on a third sheet up to, and including the The Nett taxable profit.

The accountant was happy with the spreadsheet and did not request or check any paperwork.
All he had to do was create a ROS account for her and enter the relevant figures.

What would have been a fair price for this job?
(I can't imagine it taking more two hours).

Click on the spoiler button below to reveal the fee that was charged.

€500 + VAT
 
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So Gordon, are you being flippant or are you really saying that she got good value?
 
I have been quoted €400 to €800 over the years. This I presume covers any query from revenue and dealing with any audit which they may be responsible for ? (I'm guessing it may not though)
 
I would have thought that was pretty cheap. When working in the service industry, there is a minimum fee charged.

And you shouldn't just base it on how much time spent. The accountant will make sure that it is done properly and be able to deal with the revenue directly with any issues that may occur. Your sister can then go about her business without having to worry about the return being done correctly.

...and if she had all the calculations done already, why didn't she just do the return herself?

Steven
www.bluewaterfp.ie
 
eirman said:
So Gordon, are you being flippant or are you really saying that she got good value?
Click to expand...
What do you think it should be?

There’s a de minimis level at which things cost what they cost.

The mistake that you’re making is believing that businesses should charge a client their marginal or incremental cost for doing something.

That’s not how the world works; an accountant submitting a tax return is putting his or her name and reputation to the work. They have to onboard the client, set-up the file, undertake anti-money laundering, etc. And then they have to do the work, i.e. look at your spreadsheet and input the information to ROS, check the calculation, etc.

It’s not some fella down the pub doing this stuff; it’s a qualified professional.

There’s an old saying which I’m probably butchering here, but it goes something like this: It’s not just the hour of my time you’re paying for…you’re paying for the 20 years of study and experience that enable me to do it properly in an hour.

Question(s)…why didn’t you do it for her? Or why didn’t she do it herself? And did she (or you) ask for an outline of what it might cost before engaging the accountant?

Remember, the fee is deductible, so its real cost to her might only be half the amount depending on whether she’s a higher rate taxpayer.
 
Gordon Gekko said:
There’s an old saying which I’m probably butchering here, but it goes something like this: It’s not just the hour of my time you’re paying for…you’re paying for the 20 years of study and experience that enable me to do it properly in an hour.
Click to expand...
Like the story of old Mick who was let go from the factory. A few days later, the machine breaks down and no one can fix it so they phone Mick. He comes in, picks up a hammer and give a screw a bang. He then gives them an invoice for €1,000. They are amazed at the cost so Mick offers to give them a breakdown:

€100 to hit the screw
€990 to know which screw to hit

You are paying for expertise, not time
 
Should have done it for her! I wouldn't consider it over the top as there is nearly always a sort of bottom minimum for these sort of professional jobs. I do my own for this reason. I initially approached an accountant and asked to buy an hour of his time during which I wanted him to guide me through filling the form 11 online, this he did and I have input the figures myself since, pretty basic business though and not many boxes to fill!
 
I had guessed €800 + VAT.

Most accountants won't open a file for less than €1,000 because of compliance issues.

Brendan
 
eirman said:
My sister set up a small Air-BnB business with 2 units.
This is her only income. She is single with no special circumstances.

I set up a detailed spreadsheet for her first year's accounts.
Every item of income and expenditure was entered and categorised under various headings.
The percentage of household expenses allocated to the business was automatically calculated.
Everything was summarised on a third sheet up to, and including the The Nett taxable profit.

The accountant was happy with the spreadsheet and did not request or check any paperwork.
All he had to do was create a ROS account for her and enter the relevant figures.

What would have been a fair price for this job?
(I can't imagine it taking more two hours).

Click on the spoiler button below to reveal the fee that was charged.

€500 + VAT
Click to expand...
If I was paying less than this I'd be very worried about the level of the person doing the work for me
 
Steven Barrett said:
Like the story of old Mick who was let go from the factory. A few days later, the machine breaks down and no one can fix it so they phone Mick. He comes in, picks up a hammer and give a screw a bang. He then gives them an invoice for €1,000. They are amazed at the cost so Mick offers to give them a breakdown:

€100 to hit the screw
€990 to know which screw to hit

You are paying for expertise, not time
Click to expand...
I'd get on to that factory if I were you Steven... if Mick was using a hammer with screws all his life in the factory, there must be many other 'repairs' just waiting to fail!
 
Gordon Gekko said:
It’s not some fella down the pub doing this stuff; it’s a qualified professional.
Click to expand...
Anyone dealing with the public trades on their reputation. I'm far more concerned about the integrity and ability of the bricklayer and steel fabricator who built the house I live in than the bean counter who does my tax return. If the former screw up my family and I could die. If the latter screws up I could face an audit.
 
Computer broken, gave it to a guy I know to fix it.
It took him 5 minutes and it was simply a setting that needed to be changed

He charged €110.

I asked for a breakdown.

€10 to change the setting
€100 to know what setting to change.


On the accountant op, I guessed €400.
 
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