Help with Excessive Accounting Fees

• 

  tenpercent on 13/08/2025 - 11:50

  +1

  You realise it's now FY26, right?

  Why are they billing you now for something in FY23?

  • 

    koo88 on 13/08/2025 - 11:54

    -1

    They billed mid-2024 and we were dumbfounded as to what to do while researching advice and trying to understand how this has amounted to so much. After a number of months we asked for the breakdown which I provided above, which still doesn’t seem reasonable to us. It’s been a dark cloud over us.

    • 

      AndyC1 on 13/08/2025 - 19:58

      Mid 2024 and mid 2026 is two (24 months min)…..

    • 

      Dr Phil on 14/08/2025 - 11:45

      Its impossible to comment on this as depends on exactly what OP provided to the accountant and how much detail.

      If you turn up to the accountant with a bunch of receipts and statements and the accountant must sort all the paperwork out, with maybe a few questions, then this is what you get.

      Accountants like any other professional or trade charge by the hour!

      I plug all my details into a speadsheet.
      The accountant simply lifts everything off the spreadsheet at category summary level and plugs it into the right place in the tax return.
      This is what an accountant means by "straight forward"

      Several sources of income including properties, shares, share trusts and savings accounts.
      And heaps of expenses too.
      Then he must also update depreciation schedules and lift the current year information from that
      So my tax return is not simple…

      But the time I spend preparing the spreadsheet makes it so easy to the accountant.
      Cost me $650 last year.

      Mind you he does mine as a private client working from home after returning from the office, so that helps

      Id have to ask OP if they asked for a quote first or even the hourly rate?
      Did OP ask for the typical cost of preparing a tax return such as theirs? (not a basic PAYE employee one that costs $200)
      Did OP ask the accountant what they an do to make the accountant's job easier and hence minimise the cost?

      Id say OP has many more questions to answer then the accountant does.

      PS: A charge of $200 for a tax return is the minimum cost and would only entail an employee earning a wage/salary with no other income or expenses.

      PS Accountants fees are tax deductable so after tax cost is much less!

• 

  freefall101 on 13/08/2025 - 11:51

  +1

  https://www.sa.gov.au/topics/rights-and-law/consumer-rights/…

  Raise a consumer complaint, using the email where they said it would be $150-200 and previous bills. Also is the accountant a standalone business or do they work for the overall firm? I'd escalate it within the firm if they're just a single accountant there.

  It feels like there is info missing here though, you got a quote in 2022 and an invoice in 2024? You're only now sorting it out 12 months later? Did they provide a breakdown of why it is so high as well? Surely they can explain that. Accountants usually bill by the hour, to rack up $1,600 for a single return means they would have done a fair bit of work beyond calculation a little capital gains tax.

  • 

    tenpercent on 13/08/2025 - 11:59

    +2

    This. The OP presents the situation as something that at first blush seems like it could have been done DIY with a couple of hours of work. I don't even understand why you would pay $150-$200, for the scenario as presented, unless you're flushed with cash and extremely time poor.

    • 

      koo88 on 13/08/2025 - 12:06

      +1

      Our lodgements were late, and from initial understanding was to use an accountant to avoid penalty. I have since realised thats if you owe tax, and not owe tax. I had spoken to my wife and said that and accountant might be best to highlight some tax breaks that we are unaware of. I thought for $150-200 it can’t be that bad - we can see what they do to decide if it’s worth continuing to use them.

  • 

    koo88 on 13/08/2025 - 12:04

    The accountants were assistant managers of a firm, the one that’s done out FY21 & FY22 returns is now a Manager. The Director has been sending emails in support of the Manager, but the General Manager sent an email a few months back, maybe not aware of the backstory highlighting the outstanding invoice. I could forward the email to the general manager with screenshots of the $150-$200 quote and the FY20 invoice for $200.

    They have only itemised for my wife and I for the two financial years. No breakdown in terms of hours. $1620 was essentially calculation of capital gains tax and setting up a payment plan with the ATO which I essentially drove and closed out.

    • 

      freefall101 on 13/08/2025 - 12:28

      +4

      You never mentioned the payment plan bit before now. And it's sounding a lot like you've never actually asked them why it cost so much. That would be step one once you learned they charged $1,620 for one return out of the 4, "why was this one so much more expensive?"

      Also, don't just forward on bits of information - follow the various consumer guides online. Sit down, put it all together, write to them everything that happened and why you believe you were overcharged. If they do nothing, contact Consumer and Business Services.

      That, they said it was $200 for a straight forward return, but you have a rental, a business (even if done separately, it impacts your personal taxes usually), a payment plan, capital gains and who knows what else. You were filing late, so $3,600 to tidy all that up for you isn't that unreasonable. I certainly wouldn't expect $200 returns.

• 

  7ekn00 on 13/08/2025 - 12:03

  you got a quote in 2022 and an invoice in 2024? You're only now sorting it out 12 months later? Did they provide a breakdown of why it is so high as well? Surely they can explain that.

  Lazy tax, from OP seems simple enough they could have done it themselves ;)

  • 

    koo88 on 13/08/2025 - 12:08

    We could have now, in hindsight. We usually do, I helped my wife submit prior years returns. I thought with renting out the primary residence in FY21 and my share sales in FY22, that we’d just make our lives easier. Which sounded good at the time.

• 

  brendanm on 13/08/2025 - 12:04

  +4

  You really seem to have an issue dealing with things in a timely manner.

  • 

    koo88 on 13/08/2025 - 12:10

    In this case yes, I had a few personal matters which took my attention away from dealing with this. Also trying to understand what rights my wife and I had to contest this invoice.

    • 

      brendanm on 13/08/2025 - 17:35

      +1

      Fwiw your tax returns don't seem straightforward at all, and in addition were processed late. That's never going to be cheap.

• 

  mskeggs on 13/08/2025 - 12:08

  +4

  Do you have a basis for the work?
  If I sold shares that I owned in 20 companies for decades with some in different countries and with DRPs my accountant would charge me $1000+ to backtrack all the cost basis and capital gains in different currencies.
  If I sold a single parcel of shares with a known buy and sell price they wouldn't.
  Both are "I sold shares".

  • 

    koo88 on 13/08/2025 - 12:21

    Apologies. I see how it doesn’t provide detailed context. One Australian company bought several times between 2011 and 2022 and partially sold across five parcels between 2017 and 2021. Just in Australia, AUD currency, and no DRP involved. I provided all the purchases and sales and proposed my calculations which they then adjusted/changed.

    • 

      mskeggs on 13/08/2025 - 12:55

      +2

      Ask them to break down the invoices. If they are claiming many hours of work, you can query it.
      FWIW, I don't think $600 for a tax return is excessive if you are getting access to advice with that.
      H&R Block etc are cheaper but don't provide advice.
      If your circumstances remain simple, then the premium for advice likely isn't worth it to you.

• 

  MITM on 13/08/2025 - 12:23

  +4

  An accountant isn't going to admit they miscalculated their invoice.

• 

  p1 ama on 13/08/2025 - 12:25

  +6

  After reading your thread and subsequent replies, I'm on the side of the accountants on this one - you seem like you have something to hide, withholding information from your story (e.g. that your lodgement was late) until asked, revealing more or less information in certain places to make yourself look better or to make it look like less work was needed, quite complex situations (small business, PAYG, investment property, shares), seems like you're a bit in and out and moving around with different people (lack of continuity makes it more difficult / expensive).

  If you're more difficult to work with (either because of your personality, your financial situation, or otherwise) you will be billed a higher rate. Such is the nature of work that is billed by the hour. Having done work that is billed by the hour, clients that are obtuse, try to hide things, or are otherwise trying to be cheap with me always made the work more difficult, and led to me needing to do a lot of rework and double-up, always ended up needing to pay more. The whole, "oh I forgot about this, we need to add this" at the last minute was always expensive.

  If you wish to avoid such charges, be more organised and vigilant.

• 

  bemybubble on 13/08/2025 - 13:16

  Without seeing the engagement letter your best to communicate with them directly to get it resolved.

  Why of that you can always reach out to their professional body to discuss. If they aren’t a member of a body then call the TPB.

  That being said if you’ve already paid it then you’ve effectively agreed to the fees and there’s nothing more to do but find another accountant if you’re not happy

• 

  netjock on 13/08/2025 - 13:25

  +1

  That is one way the accountants get you buy the balls. They complete your taxes past the 31st Oct deadline so you can't get away.

  The other underhanded tactic is to send you the tax return and invoice to be paid a week before 15th May deadline so you don't have enough time to check.

  Had one client who's numbers were so grossly wrong by the time I was finished with it the $30k tax bill combined turned into $6k.

• 

  Meho2026 on 13/08/2025 - 16:19

  +2

  Your tax returns weren't "straightforward" which was the condition of the $150-$200 quote.
  Straightforward would be one income as a PAYE employee with receipts for any deductions. Your situation is more complicated, you have PAYE income, property income, business accounts, CGT, late lodgement, and a repayment plan.
  You cant expect all that to be sorted for $200, never mind $150.
  Often an accountant will charge for each component as if its a separate return, eg each PAYE assessment, a property income, then for CGT and investment calculations and obviously more to assess a business income.
  It doesnt seem excessive when you take that into consideration.
  Remember their fee is tax deductible in the year you pay it.
  My advice would be to pay the invoice and move on.

• 

  dtc on 13/08/2025 - 16:28

  Just make an offer that is reasonable and they might accept it, because no one is going to court over a few $1000. Of course you will be fired as a client but thats probably not a big issue

• 

  ihbh on 13/08/2025 - 17:22

  Next time if you want cheap, ask for the work experience student to complete it. In addition to price inflation, there might be wage inflation at the firm, and when staff get promoted their billable rates increase.

  I had spoken to my wife and said that and accountant might be best to highlight some tax breaks that we are unaware of

  Many noobs justify to themselves this way, but there is no magical expertise/loophole. If you want this, you need to pay a lot more,and even then, risk going to jail.

  ---

  In a nutshell, you're thinking: I did so much prep work and they charged so much. The clear resolution is to take that next step and do it yourself. The first year or two is an investment (labour intensive), but once you set templates up, it's very quick and easy. To start on that journey, ask them for all the working papers for the tax return (to help you get started) - pretext being you want to see how much work they've put in.

  Note: trust and company returns are on paper unless you have a direct feed to the ATO (a bit of your fee pays for this convenience), but just scan the pages for free at a library or take photos for your record.

  PS: You might be thinking, I'll just focus on the big stuff making money. Well Buffett does his own tax returns.

• 

  Stalker on 13/08/2025 - 19:53

  Pay the invoice and move on. Use the time, effort and stress you will save on more valuable / enjoyable endeavors and chalk it up as a lesson for next time.

• 

  Zeph101 on 14/08/2025 - 10:00

  Also just because you provide the information and calculations, doesn't mean that the accountant doesn't check.

  If you just gave them lots of receipts or an excel spreadsheet they still need to collate the information correctly to input into the tax return. Especially with Schedule B's for the side gig.