How much does a tax advisor cost

Tax advisor cost calculator 2020: This is what it costs for the self-employed


Tobias Dierich Sep 16, 2020 7 min reading time

Nobody likes filing their tax returns or struggling with the tax office - but as a self-employed you unfortunately cannot avoid it. Many therefore outsource this annoying task to a tax advisor in order to save time and often money.

But especially as young freelancers or self-employed, we all try to keep the monthly costs as low as possible in order not to use up the reserves too quickly. The costs for a tax advisor seem to go beyond the scope of this quickly.

In this article, we explain how much a tax consultant costs you and whether it is perhaps worth it. With our calculator for tax advisor costs you can also calculate in no time how much exactly a tax advisor would cost you.

Duties of a tax advisor

A tax advisor can take on a wide variety of tasks for you, including the entire accounting, communication with the tax office or simple advice on tax questions and problems.

What duties and tasks you have to do, however, must be considered individually, as this depends on many factors, such as the legal form.

Most self-employed, who are not freelancers, are obliged to draw up an annual balance sheet for determining profits (annual financial statements). In most cases, we strongly advise against creating the balance sheet yourself, as it is a time-consuming and error-prone task. Therefore, a large part of the self-employed is already outsourcing this task to a tax advisor.

In addition to the preparation of the annual financial statements, there are a few other tasks that have to be done regularly and submitted to the tax office. As long as you do not make use of the small business regulation, you have to submit a monthly (in rare cases also quarterly) a sales tax return (UStVA).

Depending on the number of bookings, i. H. incoming and outgoing invoices, the UStVA is a laborious or less laborious task. If you only have a few (< 30)="" buchungen="" pro="" monat="" hast,="" lohnt="" es="" sich="" in="" der="" regel="" die="" ustva="" eigenhändig="" zu="" erstellen.="" wer="" hingegen="" zeit="" sparen="" möchte="" oder="" viele="" belege="" im="" laufe="" eines="" monats="" sammelt,="" sollte="" auch="" die="" ustva="" an="" einen="" steuerberater="">

Finally, the most important task remains: ongoing bookkeeping. Ideally, you collect your invoices and receipts continuously over the course of a month and then hand them over to your tax advisor. The simplest variant is that you hand over a folder with paper receipts at the end of the month and he works through them. Your tax advisor has to sort and scan all documents, enter them into their IT system and post them. This option is correspondingly complex and expensive.

In any case, it is therefore advisable to use a digital document filing system and to send the documents to the tax advisor in this way. In addition, you have the opportunity to take over part of your bookkeeping yourself and thus save costs.

Tax advisor fees

The cost of a tax advisor depends, of course, on which tasks are to be taken on. If you only want to submit your annual accounts, you pay less than someone who does the entire accounting. You can save a lot of money, for example, by using a digital document filing system in which the documents can be parked. With the right software, it is also possible in many cases to do the UStVA yourself and save more money.

In principle, however, the fees that a tax advisor may charge are regulated in the Tax Advisor Remuneration Ordinance (StBVV). For this purpose, the law defines three fee schedules for different activities:

  • Table A for advice
  • Table B for degrees
  • Table C for bookkeeping

However, the remuneration regulation does not provide for a fixed remuneration, but gives the tax advisor a certain amount of leeway in that he can determine his remuneration. Depending on the complexity of the tax case, the tax advisor may charge a higher fee. If necessary, the tax advisor must be able to justify this. If, on the other hand, the tax case involves little effort, only a lower remuneration may be requested.

The basis of the calculation is in any case the so-called object value which corresponds to the income for companies and self-employed persons and the income for private individuals.

Example: You are a freelance graphic designer and have an annual turnover of 75,000 euros. Now you would like to have your annual financial statements drawn up by a tax advisor. Since freelancers are generally not required to be accounted for, only an income statement must be drawn up.

The object value, which serves as the basis for calculating the remuneration, is therefore 75,000 euros.

Since this is a contract, table B of the StbVV specifies the remuneration. The full remuneration for this object value is 319 euros.

The ordinance allows the tax consultant to charge 0.5 to 3 times the full remuneration, i.e. 159.50 euros to a maximum of 957 euros, for the preparation of the EÜR, depending on the effort involved in the conclusion. The medium fee, on which the fee should usually be based, is 1.5 times the full remuneration, i.e. 478.50 euros.

A tax consultant may only charge higher fees if he has previously obtained written confirmation from the client.

Cost calculator

To calculate exactly how much a tax advisor would cost you personally, you can use our tax advisor cost calculator. Simply select which tasks your tax advisor should take over for you and how high your annual turnover is and you will receive the costs according to the tax advisor remuneration ordinance.

The calculator uses the updated StBVV from 07/01/2020.

Is it worth?

Whether a tax advisor is worthwhile for you depends on many factors. It is primarily the task of a tax advisor to optimize your tax burden, i. H. make sure you don't pay unnecessary taxes. From a financial point of view, a tax advisor is worthwhile here if the tax savings are higher than the tax advisor costs.

However, the tax savings from a tax advisor cannot be predicted. Therefore, you should assess your very personal situation here and, if necessary, consult a tax advisor.

Save even more time and money

With likvi you have your bookkeeping done in no time and perfectly prepared for your tax advisor. Try likvi now for free for a month and see for yourself.

In addition to the direct financial aspects, however, there is one point that is much more important from our point of view: A tax advisor saves you time. How much this is worth is judged differently by everyone. Most would surely prefer to spend the time driving their car with family and friends.

Those who prefer to work more should also work out how much they can earn in the time they don't have to deal with their taxes. With appropriate workload and a good hourly rate, a tax advisor can be worthwhile for this aspect alone.

Last but not least, the security gained by a tax advisor should not be forgotten. In the case of more complex tasks such as the preparation of annual financial statements, inexperienced people can quickly make mistakes, which in the worst case can be very expensive. A tax advisor will certainly make minor mistakes from time to time, but much less often. In addition, tax advisors are liable for damage that can be proven to have arisen from incorrect advice. All in all, you can save yourself a lot of nerves and sleepless nights.

Alternatives

If you want to use the advantages of a tax advisor, but have to pay attention to the budget, you can use one of the many online tax advisor providers such as Felix1 or smartsteuer. For a comparatively low price, you can get standardized tax advice from the annual financial statements to advance VAT returns. However, the disadvantage of these offers is clearly the lack of flexibility, especially for more complex matters. In addition, on-site support is usually required, e.g. B. during a tax audit, not possible.

If you prefer to hire a local tax consultancy, we recommend using an online tool that can be used to prepare the bookkeeping and which facilitates cooperation with a tax advisor, e.g. B. made possible by means of DATEV export. This saves a significant part of the annual tax consultancy costs.