Are you scared of the accountant?  Or are you scared of their fees?

It’s a fair call. Accountants can charge a motza.

But they don’t all charge the same. It depends on a number of factors. Here they are:

• The type of service
• The average fees charged in your part of Australia
• The accountant’s qualifications and level of experience
• The complexity of the job
• Whether your accountant is a CPA or a Chartered Accountant. Learn more about the difference between the two here.

Luckily, there is a way to minimise your accountancy fees. And it’s a no-brainer. Simply put – be organised. If your financial records are in good order it won’t take your accountant long to sort through them. Remember – they charge by the hour.

So what are the costs?

The cost of submitting a basic tax return online, with few deductions is around $50.

If you are a sole trader you’ll need a compliance package. This includes BAS statements, a tax return plus a couple of hours to review everything. This costs around $1000.

Running a small business? You’ll need a compliance package that includes BAS statements, year-end financial statements, year-end company tax return, the director’s personal tax return, an ASIC lodgement plus a 2-hour review by an accountant. This will cost somewhere between $2500 and $4000.

Be upfront. Talk to your accountant about what you need. And don’t be afraid to ask them about their fees, and how you can reduce them. Besides, you can actually deduct the cost of managing your financial affair on next year’s tax return. Bonus.

Need an accountant? You can find one here.