Whether you’re an individual needing help with tax returns or a business owner seeking a business accountant with business owner experience, understanding how much an accountant charges is essential for budgeting and decision-making. Accounting fees can vary widely based on the type of services you need and the accountant’s experience, and their location. Here’s a breakdown of what to expect.
1. Services Offered by Accountants
The cost of hiring an accountant depends on the services you require. Here’s a general list of accounting services and their typical price ranges. Below is a fee that you should expect to pay and receive quality service in return (figures in this blog are exclusive of GST).
- Individual Tax Returns (simple): $200–$250
- Small Business Tax Returns (start up or in early stages): $500–$1,200
- Bookkeeping: $80–$120 per hour
- Business Advisory Services: $150–$300 per hour
- BAS/IAS (Activity Statement) Lodgement: $150–$250 per quarter
- Payroll Services: $50–$100 per month
- Self-Managed Superannuation Fund (SMSF) Services: $2,000–$3,000 annually
2. Factors Influencing Accounting Costs
Several factors affect how much an accountant Melbourne charges:
- Experience and Expertise: Senior accountants, CPAs (Certified Practising Accountants) and CAs (Chartered Accountants) charge more due to their qualifications and years of experience.
- Type of Accounting Firm: Large firms with a wide range of services and highly skilled teams charge premium rates. Smaller or boutique firms, such as Nobel Thomas, will generally offer more competitive pricing.
- Complexity of Work: Complex tax situations or business restructuring require more expertise and time, leading to higher fees.
- Frequency of Service: Regular services like monthly bookkeeping or payroll might come with discounted rates compared to one-off consultations.
3. Hourly vs. Fixed Fees
Most accountants offer either hourly rates or fixed fees, depending on the service:
- Hourly Rates: Typically range from $80–$300 per hour, depending on the complexity and the accountant’s expertise.
- Fixed Fees: Many accountants offer fixed rates for specific services like tax returns or BAS lodgements. This can help you avoid unexpected costs.
4. Choosing the Right Accountant
When deciding on a business accountant, it’s not just about cost. There are countless examples in real life where a client will be better off paying a little bit more and receiving a better service. For example, Client A may pay $2,000 to an accountant to look after his business affairs and receive a tax bill of $7,000. On the other hand, client A may go to a more reputable and skilled accountant and pay $3,000 to the accountant to look after his business affairs and receive a tax bill of $2,000. Client A is better off using the second accountant and paying an extra $1k in accounting fees and saving $5k ($7k less $2k) in tax. This is because the second business accountant will have more experience and more strategic and legal ways to save tax. Anyway, you need to consider the following when choosing an accountant Melbourne:
- Reputation: Look for reviews, testimonials, or recommendations from trusted sources such as Google.
- Qualifications: Ensure the accountant Melbourne is registered with relevant bodies like CPA Australia or Chartered Accountants Australia and New Zealand (CAANZ).
- Compatibility: Choose someone who understands your business or personal financial situation.
- Technology Use: Accountants using modern software like Xero, QuickBooks, or MYOB can streamline processes and potentially lower costs.
5. How to Get Value for Money
To maximize the value of your investment in accounting services:
- Prepare Ahead: Organize your financial records and documents before meeting your business accountant to save time and reduce hourly costs.
- Ask for a Quote: Get detailed quotes outlining all potential costs to avoid surprises.
- Bundle Services: Many firms offer discounted rates for bundled services.
- Seek Expertise: Paying more for an experienced business accountant can save you money in the long run by reducing errors and maximizing tax savings (as mentioned earlier).
The cost of hiring an accountant Melbourne varies widely depending on the services you need and the complexity of your affairs. While it’s important to consider your budget, don’t overlook the value an experienced accountant can provide in terms of financial savings and peace of mind – you’ll be in front in the long run if you do. Whether you’re a business owner or an individual, investing in the right business accountant can make a significant difference in achieving your financial goals.
If you’re looking for a quality accountant Melbourne, feel free to contact Nobel Thomas for a personalized quote tailored to your needs.
