Following are some common questions asked by clients and the accountants response -

Question: How Do Accountants Charge?

Answer: All Accountants charge by time. The longer it takes to prepare your Return the more it’s going to cost. Some businesses sell hamburgers, Real Estate Agents get paid commissions and ACCOUNTANTS SELL TIME. The more presentably you submit your records, the quicker we get your work done and the more cost effective this is. We only have 7.5 hours per day to sell and we would not be in business if we gave our product away.

Question: Can You Give Me A Quote For The Job?

Answer: Just like it's impossible to quote a building job over the phone without looking at the plans, or value jewellery over the phone, it is not possible to know how long any accounting work might take.

One set of books for a same business can take twice as long as another set for the same business, depending on how the records were presented. Please work with us to try to minimise the time taken and hence the cost to you. Ask us about more efficient ways of presenting your records to us. The more you do the less it will cost. Make sure everything we need is there. Should we pick up and put down your work waiting for missing information, the longer it will take and the more it will cost.

Question: Why Is My Bill So Much More This Year Than Last Year?

Answer: Basically three reasons

1. There could be a lot more work this year. Example: there could be an extra lease or turnover / activity has gone up or extra things you required us to do. Capital gains tax calculation, sale or purchase of a business, unusual super contributions or investment property transactions.

2. Increase in our charge out rates as our labour costs are going up every year.

3. Due to missing information. If info is missing we must leave your job, pick up a new one and then not return to yours until this next job has been completed. The more often a job is put down & picked up again, the more time it takes.

It is in our interest to complete your work quickly so we can get onto the next job. We earn the same amount of money and have a lot more happy clients.

Question: The MYOB / QuickBooks salesman said that the software should reduce my accounting costs but it’s actually doubled? (In some cases tripled, or more).

Answer: Basically garbage in, garbage out. It takes much longer to sort out garbage. The most frustrating thing (and every Accountant says the same thing) is when a client gives them a year’s computer printouts (after spending hours getting it to this stage) and we then have to spend hours and hours sorting out the mess. Efficient computerisation of yours accounts depends solely on the operator. If the operator is good then it would definitely reduce time. However if the operator is not good then it takes a lot more time and we need to use a more qualified (higher cost) person to try and sort out the mess. If the operator is not good then it’s far better and more cost effective to use a simple manual cashbook system (or simply supply cheque butts & bank statements).

Questions: You’re My Accountant Why Is Someone Else Preparing My Tax Return?

Answer: It’s more economical for you. It’s silly to use a surgeon to stitch a minor cut when a G.P. can do it at a much lower cost. The surgeon cannot do this any better than a G.P. and it’s an overkill to employ a surgeon to do it.

We are doing this daily and when you do something frequently, one becomes very quick and efficient.

Our team members have university degrees, some of us are in the process of attaining one and others are CPAs, Fellows of Taxations Institute of Australia and National Taxation Audits.

Question: I Asked You To Run Your Eye Over This Document And You Send Me A Bill.

Answer: Don’t forget our business is to sell time. If a takes take’s less than 5 minutes (like a phone call) then it’s done for free. More than 5 minutes it’s charged for (including phone calls). We only have 7.5 hours per day to sell. If we give it away for free we would not be in business and be able to offer our services.

Whenever we request an answer to a question from say our solicitors they send us a bill. Once again based on the time spent (at $350 / hour). It’s not unusual to get a bill for $87.50 for a 15 minute phone conversation. This is standard practice. We understand that if we want their time we have to pay for it.

Question: How Are Your Fees Compared To Other Accountants?

Answer: We are 40% better value than city firms and are comparable or less expensive than other suburban firms of similar size.

Question: How Do We Know This?

Answer: 3 reasons

1. We compare our rate with other accountants every six months and our charges are 10% less than the average suburban practice.

2. We have grown our practice rapidly. Most accountancy practices only grow by about 5%-10% p.a. If you are too expensive, clients would not come back. We do not advertise and all growth is through word of mouth. A business needs three things to grow:

a) Reasonably priced services
b) Goods service / product
c) Honesty / ethics

3. Whenever we complete a new client’s work it is usually 10% - %50 better value than the previous Accountant, 80% of the time. If the client came from a city firm we are consistently 30% - 50% better value.

Beware of ‘cheap’ bookkeeping services provided by un(der)qualified people. What you get from them is simply a bookkeeping service. They are unable to provide strategic solutions to particular problems and do not have the required professional background to keep abreast of tax changes. What you save in a few dollars of Accountant fees could cost you thousands in lost tax benefits.

Like most other businesses, to be in business we must make profit, the average net profit of Accountancy firms is around 20%. Therefore if the client receives an account for $1,000, the net profit on the job after wage costs, rent, insurance etc is $200.00.

Question: Why Has My Work Taken So Long?

Answer:

a) In the peak period it will take longer.
b) Missing information will delay the job.

In the PEAK PERIOD between August and March the turnaround time may stretch out to 3-4 months or more, as everyone wants their work done in this period. Every Accountant in Australia is in the same boat. So please be patient in this period

In the OFF-PEAK PERIOD between April and July turnaround time drops back to a few weeks. Just like there are peak and off-peak periods for holiday accommodation every Accountant is in the same boat. So be prepared for delay in the peak period between August and March. Remember how hard it is to get accommodation during school holidays.

Paying Accounts On Time

Please help us provide you good service by paying your accounts on time. Without payment we cannot provide the resources to give you prompt services. Some clients take a long time to pay but expect us to drop everything and attend to their needs immediately. It must be a two way street.
You have to get the best services possible and we have to be given the opportunity to provide it within the constraints available to us.

Thank You

We would like to take this opportunity to thank you for your loyalty and trust over the years and assure you that we are managing our business into the 21st Century to give you the absolute best that this profession can offer.

We assure you that we will continue to provide you the kind of services that have new clients coming to us with comments like: “There is nothing wrong with my present Accountant but you were so highly recommended that I just had to come over”. We would like to extend our gratitude to our loyal clients for your recommendations.

We appreciate the confidence you have shown in our team and we strive to improve that level of service by following our motto of “Continuous Development and providing you with peace of mind that we handle your affairs as if they were our own”.

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.
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