Can tax advisor fees also be billed lump sum?
February 21, 2024 | 60,00 EUR | answered by Eva Peters
Dear tax consultant,
My name is Dietrich Kock and I am looking for a solution regarding the billing of tax consultant costs. I have been billing my tax consultant costs based on an hourly rate, which has often been too confusing and expensive for me. Therefore, I am wondering if there is also the possibility to bill tax consultant costs on a flat rate basis.
Currently, I regularly commission my tax return with a tax consultant and have to pay the corresponding hourly rate for each hour worked. However, as my tax matters often become complex and I regularly have questions, this results in high costs that are difficult to calculate.
My concern is that by billing based on an hourly rate, I may end up paying more than if I were to bill tax consultant costs on a flat rate basis. Additionally, it would be much easier for me to plan my finances if I knew in advance what costs to expect.
Therefore, I am wondering if there is a possibility to bill tax consultant costs on a flat rate basis. Are there specific criteria or requirements that need to be met in order to benefit from a flat rate billing? How would a flat rate billing look in my case and what advantages would it have for me?
I look forward to your feedback and thank you in advance for your support.
Best regards,
Dietrich Kock
Dear Mr. Kock,
Thank you for your inquiry regarding the billing of tax advisor fees. It is understandable that you are looking for a cost-effective and transparent solution to manage your tax matters.
Billing tax advisor fees on an hourly basis can indeed lead to unforeseeable and expensive costs, especially if your tax matters are complex and questions arise regularly. In such cases, a flat-rate billing may be a sensible alternative.
With a flat-rate billing, the tax advisor fees are not charged based on actual hours worked, but a fixed amount is agreed upon regardless of the tax advisor's actual working time. This amount can be due monthly, quarterly, or annually, depending on the agreement with your tax advisor.
To benefit from flat-rate billing, you should discuss your tax matters and consulting needs with your tax advisor. The tax advisor will then provide you with an offer based on your individual requirements. Generally, certain criteria such as the scope of services, the complexity of tax matters, and the consulting needs are taken into account in flat-rate billing.
The advantages of flat-rate billing lie primarily in the transparent cost structure and the predictability of your finances. You know in advance what costs to expect and can plan your budget accordingly. Additionally, flat-rate billing can help ensure that you do not incur additional costs due to longer consultation times or frequent questions.
Therefore, I recommend discussing the possibility of flat-rate billing with your tax advisor and finding a solution together that meets your needs and budget.
I hope this information was helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Eva Peters
