How Accounting Firms Should Explain a Bigger-Than-Expected Tax Bill

17 September 2026·3 min read

Quick answer: Lead with the reason, not the number. Explain what changed (income, a sold asset, a lost deduction) before stating the bill, so the client understands the cause before reacting to the figure. Never let a client see a bigger-than-expected number with no explanation attached — that's what erodes trust, not the number itself. 📈

Here's the moment that makes or breaks a client relationship 💖: the bigger-than-expected tax bill. It's rarely the accountant's fault — income changed, a deduction disappeared, a capital gain landed — but if the client only sees the number without the reason, the accountant can end up wearing the blame anyway.

What Most Accounting Firms Get Wrong

The common mistake is delivering the number first and the explanation second, or worse, letting the client discover the number in a portal notification with no context at all. By the time the explanation arrives, the client's already reacted emotionally, and it's much harder to walk that reaction back than to prevent it in the first place.

The Script

"Before I send through the final figures — I wanted to flag that this year's result looks different to last year's, because [specific reason: you sold [asset], your income increased by [X], you no longer had [deduction]]. That's brought the tax payable to $[amount], compared to $[amount] last year.

I know that's a jump, so let's talk through whether there's anything worth planning for next year to manage this going forward."

Send or say this before the client sees the figure anywhere else — portal, email, or otherwise.

A suburban accounting practice: calls clients ahead of releasing any return with a tax payable more than 20% higher than the prior year, rather than relying on email alone — a two-minute call prevents most of the frustrated follow-up calls that would otherwise come in later.

A firm serving small business owners: pairs the explanation with one concrete planning suggestion for next year (adjusting PAYG instalments, timing an asset sale) so the conversation ends on something actionable rather than just an explanation of what already happened.

The Mechanics: Building This Into Your Workflow

Set an internal flag for any return where tax payable jumps beyond a set threshold from the prior year, so it's never a surprise to staff either. Route flagged returns to a phone call or meeting rather than an email-only delivery.

💡 Order matters more than wording: reason-then-number almost always lands better than number-then-reason, even when the words used are nearly identical.

Mistakes to Avoid

Letting the client see the number before hearing the explanation
Explaining in technical language without translating to what actually changed
Treating every jump the same way regardless of size
Ending the conversation without any forward-looking suggestion

Please note: general information, not tax advice — any planning suggestions should be tailored to the client's specific circumstances and current legislation.

Frequently asked questions

Should this call happen even for small increases?

Not necessarily — set a genuine threshold (a percentage or dollar jump) so the extra step is reserved for cases that actually warrant it, rather than adding friction to every return.

What if the increase is due to an error on the client's side, like under-reporting income previously?

Keep the explanation factual and non-judgemental — focus on the current year's correct figures rather than relitigating the past.

Is it better to soften the number or state it plainly?

State it plainly, once the reason is understood. Softening or hedging the number itself tends to create more anxiety, not less.

Does this apply to refunds that are smaller than expected too?

Yes — the same reason-first approach works whenever a figure differs meaningfully from what a client might be expecting.

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Written by

Kate, founder of Chronically Online

I help Gold Coast and Brisbane businesses grow with branding, websites and marketing that actually works.

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