Accountant charges for small buss.?

[nv_hunter]

I got my bill today from my accountant for my 07 tax's he prepared. I am a sole prop. and make tax prep very easy for my accountant. I recieved a bill for 2K. I posted this here because I know there are a few small bussiness owners here and would like some input on this. last year my bill was 1200 dollars and that seamed steep. Maybe im in left field on this but they charge 100 an hour and they claim 20 hours and that doesnt seem right. what do you think?

 

[TripleK]

Sorry Abe, but I read that as small BUSSES, not business. LOL I was thinking, "What? Is Abe driving the short bus now?" lol Sorry!

I'm no help, but 2k seems like a huge amount just for tax prep.

 

[NVBighorn]

Abe, if you are a sole proprietor, without a ton of special requirements, and you have it set up so it's easy for your accountant, and you have this year's and last year's return... why not buy a tax software package like Taxcut or Turbotax and do it yourself. You have previous years examples and with todays software for 50 or 60 bucks you can do it. Now if your situation is a lot more complicated than I'm making it out to be then don't try it yourself. Just a thought.

 

[legacy]

I'm set up as an S-Corp. My taxes a fairly simple. I think I paid between $300 and $400 last year.

 

[B_F_E]

Because your accountant knows how much money you make, he also knows what a rich MF'er you've became, so he charges accordingly

Joking aside, in the event of an audit that two grand will be the best money you ever spent. Kinda like audit insurance.

 

[bobby7321]

did he also do your book-keeping for the whole year? I have clients who just dump a whole crate of paperwork and figure I'll do the whole year's booking keeping so I can then do the taxes (one obviously needs to happen before the other), then only charge for the tax prep. So if he had to basically do all your accounting for the year, then its a decent deal. If he just did the taxes, then its a rip.

I'm both a tax preparer and a retail business owner. get accounting software, enter all your transactions (i reconcile everything from my online banking printouts) and at tax time, one multi-page report will give your tax preparer all he needs to do your taxes. which should run around $200 bucks I would think. Or like what was mentioned above, do it yourself for damn near free.

I could never justify paying an accountant to do such a simple task. unless of course you run a very complex business or something. cpa's bank off people's fears of the big bad IRS.

 

[manny15]

mine was 350.00

 

[ktg]

I've got an S-corp and an LLC. For both of those plus personal returns - $1190.

 

[bobcatbess]

IIFF II WWAASS TTHHEE AACCCCOOUUTTAANNTT YYOOUU''DD BBEE PPAAYYIINNGG 8,000.00!!!!!!

THIS IS MY NEW GUN,YOU MAY NOT LIKE IT,YOU'LL LIKE IT A HELL OF A LOT LESS WHEN IT HITS ITS DESTINATION!!!

THE ONLY bobcat THAT KNOWS ALOT OF YOU HAVE HAD THIS IMAGE IN YOUR PEA BRAIN BUT DUE TO POOR SHOOTING TACTICS I'M STILL KICKIN!!!

 

[RandallT]

My wife and I are both self employed, and we pay 350$ for both business, and our personal taxes together. One thing that really helps is we do all the # for him by keeping tabs on expenses and income through quick books, that way we just give him the totals for the year and he plugs them into the puter, along with his liitle tricks.

 

[nv_hunter]

Thanks for the input. I am shopping for a new CPA today!

 

[overton]

>IIFF II WWAASS TTHHEE AACCCCOOUUTTAANNTT YYOOUU''DD
>BBEE PPAAYYIINNGG 8,000.00!!!!!!
>
>THIS IS MY NEW GUN,YOU MAY
>NOT LIKE IT,YOU'LL LIKE IT
>A HELL OF A LOT
>LESS WHEN IT HITS ITS
>DESTINATION!!!
>

>
>

>
>THE ONLY bobcat THAT KNOWS ALOT
>OF YOU HAVE HAD THIS
>IMAGE IN YOUR PEA BRAIN
>BUT DUE TO POOR SHOOTING
>TACTICS I'M STILL KICKIN!!!


LMAO!

 

[overton]

NV

I have been through a IRS audit. Believe me $2,000 will seem like a bargin when you go through one.


Ransom

 

[NVBighorn]

No doubt. As I said, I may be over simplifying his situation.

 

[overton]

NVBighorn

NV is a contractor and they are audited very often. Heck if I was the IRS I'd audit NV for sure.

 

[doityourself]

I'd also look at upgrading to an S-Corp or an LLC. As a sole prop you are getting hammered with taxes, plus the S-Corp will protect your personal assests alot more.

I pay my accountant less than $300 for my taxes and $40 to do my quarterlies. I would never do my own taxes. These guys do it for a living. If you need a plumber do you call a chef? Use a professional when dealing with your taxes, it will save you alot of headache and be well worth the money you spend. Just get a good accountant.

 

[Kevin D]

I suspect the $2,000 accounting charge may be for more than just preparing tax documents. If the accountant had to go back through your checkbook and catagorize all your receipts and expenditures, you may have gotten off cheap.

I am a partner in a small construction company with about 15-20 employees. We do our own accounts recievable and accounts payable but let an accounting firm handle our payroll and government papers. It costs us about $200 a month for the service plus another $100 or so for filing our quarterlies for us. Add another $400-$500 for preparing our corporate returns at the end of the year, and we're well over the $2,000 figure you mentioned.

My attitude on this is that you do what you do best, and let them do what they do best.....it is just one of the costs of being your own boss. :-(