How are tax consultant fees usually billed?
October 16, 2023 | 55,00 EUR | answered by Ingo Koch
Dear tax advisor,
I am Fanni Völker and I have a question regarding tax advisor fees. I recently submitted my tax return and was surprised by the amount of costs that were invoiced to me. I am wondering how the costs for the services of a tax advisor are usually billed and if there are ways to reduce these costs.
I have always thought that tax advisors bill by the hour, but I am not sure if that is actually the case. I am also wondering if there are differences in billing depending on the type of service the tax advisor provides. For example, if the billing for preparing a tax return is different than for advising on tax-related questions.
Furthermore, I am concerned about whether there are ways to lower the costs for the services of a tax advisor. Are there perhaps flat-rate offers or packages that are cheaper than billing by the hour? Or are there other ways to reduce costs without having to forgo the professional support of a tax advisor?
I would greatly appreciate it if you could provide me with more information on this topic and suggest possible solutions. Thank you in advance.
Sincerely,
Fanni Völker
Dear Mrs. Völker,
Thank you for your question regarding tax advisor costs. It is understandable that you were surprised by the amount of fees that were charged to you. I will try to explain to you in as much detail as possible how the costs for the services of a tax advisor are usually billed and what options there are to reduce these costs.
Tax advisors typically do charge their services by hourly rates. These hourly rates can vary depending on the experience and qualifications of the tax advisor. It is important to clarify the hourly rates and billing modalities before starting cooperation with a tax advisor to avoid later surprises.
There are indeed differences in billing depending on the type of service the tax advisor provides. The preparation of a tax return is usually billed at an hourly rate, while advice on tax matters can also be billed flat-rate or based on effort. It is important to clarify these details with the tax advisor in advance to avoid misunderstandings.
There are various ways to reduce the costs for the services of a tax advisor. Some tax advisors offer flat-rate offers or packages that are cheaper than billing by the hour. These packages may include, for example, the preparation of a tax return and advice on tax matters. It is worth comparing different offers to find the right one for you.
Furthermore, there are other ways to reduce costs without having to forego the professional support of a tax advisor. For example, you can come well-prepared to meetings with the tax advisor, have all relevant documents ready, and clarify any open questions in advance. The more efficient the cooperation with the tax advisor is, the lower the costs are likely to be.
I hope this information was helpful to you. If you have any further questions, I am happy to assist. Thank you for your interest and kind regards,
Ingo Koch
