How much do accountants charge to prepare and lodge a small business tax return?
What is the average price range accounts charge to prepare and lodge a small business tax return? Are there any factors that affect the cost?
The price you're quoted for your small business tax return will vary due to a number of factors (e.g. are you a sole trader, partnership, trustee of a trust, or a company). Therefore it's important to take my advice as only a general guideline. But as a rule of thumb, you would expect most small accounting firms to prepare the annual tax return of a relatively straightforward company for about $1200 - $1500 + GST. If you go to a mid-size accounting firm the price will probably be about 50% dearer, and a large accounting firm typically charges double the above ballpark figures.
If you have multiple related entities, unusual circumstances (such as having received Government grants, charitable status), or have done a bad job of keeping your records, then the fees are likely to be higher. However, a good accountant should be able to give you a fairly good indication of what to expect, and will keep you updated along the way if it looks like there is going to be a cost over-run.
It is actually a difficult question to answer. To a point I agree with Dionne but it really does depend on a lot of things. There is no magic formula. The type of business, the industry, the number of transactions, the quality of the bookkeeping. It also depends what you classify as small. A business with a turnover of $1m is small. So is one that generates $10,000. But the fee is likely to be very different. However, I also advise that the fee is only one part of the equation. The other side is the value you are getting. I rarely quote on just doing the return. We are always looking to make cost or tax savings for our client because there is value there. So if you received a quote for doing tax returns and one is $1,250 and the other is $2,500 on the face of it the $2,500 is much more expensive. But you might find that if you spend $2,500 they spend more time on your affairs and they might find you savings of $5,000. It then makes sense to spend the $2,500. At the end of the day it depends what you want too. Cheap fee or a service that gives value. My advise would be speak to a number of tax agents and see what they can offer and see if it is what you want
As a biz owner you should be able to view your accountant as an investment rather than a fee. Many accountants will give you a fixed price too. There is a great report talking about it on the link. Hope this helps, Cheers, Lisa.