How are tax consultant fees calculated?
June 30, 2022 | 50,00 EUR | answered by Ingo Koch
Dear tax advisor,
I am reaching out to you because I am confused about the calculation of the tax advisor fees. I recently used your services and have received a bill that I cannot fully understand. Therefore, I would like to understand how exactly the costs for your services are determined.
For background information: I am self-employed and regularly require the assistance of a tax advisor to accurately carry out my tax returns and bookkeeping. I have always paid flat rates for the services so far, but now it seems that the costs are broken down in more detail.
My current situation is that I have received the bill and do not know exactly which services and working hours are included in the costs. I am concerned that I may be paying more than necessary or that I may have overlooked important services.
My question to you is therefore: How are the tax advisor costs calculated exactly and based on what criteria is the price for your services determined? Are there ways to optimize the costs or make them more transparent? I would like to understand what I am getting for my money and if there are possibly alternatives to handle the costs more efficiently.
Thank you in advance for your help and clarification on this matter.
Sincerely,
Konrad Kaiser
Dear Mr. Kaiser,
Thank you for your inquiry and your interest in transparently determining the costs of tax advisor services. I understand that it is important to understand the costs of my services and to ensure that you receive the best possible service for your money.
The calculation of tax advisor costs is usually based on various factors, which I would like to explain to you in more detail. First of all, it is important to know that tax advisors generally bill according to the Tax Consultancy Act (StBerG) and fees can be freely agreed upon. There are different billing models that are used depending on the type and scope of services.
In your case as a self-employed entrepreneur, the costs for my services may be calculated based on an hourly rate. This means that the number of hours spent on handling your tax matters is multiplied by a certain hourly rate. This results in the total amount that you see on the invoice.
It is also possible that flat fees have been agreed upon for certain services. This means that a fixed price has been set for standardized services such as tax return preparation or monthly accounting. In this case, you should be able to clearly see in the invoice which services were billed at what price.
To optimize costs and make them more transparent, I recommend having a consultation with a tax advisor before starting the collaboration to discuss the exact services and costs. You can also ask for a detailed breakdown of the services provided in the invoice to ensure that you only pay for the services actually used.
There is also the option to agree on alternative billing models with your tax advisor, such as performance-based compensation or a monthly flat fee for ongoing consultation. These options can help with better cost planning and transparency.
I hope that this information helps you and gives you a better understanding of the calculation of tax advisor costs. If you have any further questions or need assistance, I am at your disposal.
Best regards,
Ingo Koch
