Are tax advisor fees negotiable?
July 23, 2022 | 50,00 EUR | answered by Petra Lehmann
Dear tax advisor,
my name is Felix Eder and I run a small business. In recent years, my tax advisor costs have steadily increased and are now significantly burdening my budget. I am wondering if it is possible to negotiate the costs for tax advice in order to minimize my financial risk.
The current situation is that I pay a fixed amount to my tax advisor on a monthly basis, which has significantly increased over time. Although I am satisfied with the service of my tax advisor, I am wondering if it is possible to negotiate the costs and possibly find a more affordable solution.
My concerns are that the rising tax advisor costs could reduce my profit and jeopardize my liquidity. Therefore, I am looking for ways to optimize costs and possibly discuss an adjustment of fees with my tax advisor.
My question is: Are tax advisor costs negotiable and are there ways to reduce the costs for tax advice? I would like to know if it is common to negotiate fees with a tax advisor and how best to proceed in order to find a solution that is satisfactory for both parties.
Thank you in advance for your support and advice.
Sincerely,
Felix Eder
Dear Mr. Eder,
Thank you for your inquiry regarding the negotiability of tax consultant costs. As a tax consultant, I understand your concerns and can understand that the rising costs of tax advice could burden your budget and jeopardize your liquidity.
In principle, it is possible to negotiate with a tax consultant about costs. However, the negotiability of fees depends on various factors. Generally, the costs for tax advice depend on various parameters such as the scope of services, the complexity of tax matters, the qualification of the tax consultant, and the duration of the collaboration.
It is important that you speak openly and transparently with your tax consultant about your financial situation. Explain to him that the rising costs are burdening your company and that you are looking for ways to optimize costs. Often, tax consultants are willing to negotiate fees with their clients to find a satisfactory solution for both parties.
One way to reduce the costs of tax advice could be to optimize the services of your tax consultant. Review with your tax consultant which services are truly necessary and which could potentially be saved to reduce costs. There may also be alternative billing models such as flat fees or performance-based compensation that are more favorable for you.
It is advisable to prepare well for the conversation with your tax consultant and to argue why an adjustment of fees is important for you. Show your tax consultant how reducing costs can lead to better long-term collaboration and a win-win situation.
In any case, I recommend seeking professional advice and, if necessary, obtaining quotes from other tax consultants to compare costs and services.
I hope that my explanations help you and wish you good luck in negotiating your tax consultant costs.
Sincerely,
Petra Lehmann
Tax Consultant
