Cost of an accountant for year-end/tax preparation?

tzingleman · Jul 6, 2009

I'm trying to plan ahead for the end of the year. Can anyone give me a price range to expect for an accountant to file my taxes and any other end-of-the-year stuff I don't know about? This will be for a fairly small LLC/partnership with fairly simple records.

Thanks

shoot · Jul 6, 2009

Anywhere from $200 to $500 and up for basic preparation. Best advice I can give you on this (having been through a couple of accountants in two years before finding the one I use now in 2002) - 1- get referrals from prospective accountants and call them. 2 - you get what you pay for. 3 - if something feels remotely off, find another one. You should feel as good about an accountant as you do a preacher.

Good luck!

Parker Phoenix · Jul 6, 2009

I pay $800. It ain't cheap, but it is a wise investment.

Milkman · Jul 6, 2009

tzingleman said:
I'm trying to plan ahead for the end of the year. Can anyone give me a price range to expect for an accountant to file my taxes and any other end-of-the-year stuff I don't know about? This will be for a fairly small LLC/partnership with fairly simple records.

Thanks

Contact member Elfiii, thats what he does. He can tell you how much to budget for.

Doyle · Jul 6, 2009

A lot of the price will (or should) depend on how good you keep your books. The more they have to dig, the more it will cost you.

Boudreaux · Jul 6, 2009

Depends basically on how much time it will take to prepare. If you've got a straight forward 1040 with a Schedule A, you're in a $200 range.

If you've got a Schedule B, D, F, 2106, educational expenses, childcare expenses, etc it gets more expensive.

I charge by the hour instead of by the form, and looking at your prior year's return will allow me to estimate the time required.

tzingleman · Jul 6, 2009

Thanks for the responses, everyone. I try to keep the books very straightforward, and this is the first year we've been in business, so I don't know what to expect.

Doyle · Jul 6, 2009

If you keep your books electronically, you'll want whomever you choose for your tax preparer to help you "tax sensitize" your bookkeeping program. That will make creating the grouping sheets much easier for future years. Once your program is correctly tax sensitized, each transaction you record will automatically go to a pre-assigned grouping for tax purposes. Then, come tax time, the preparer just has to review the groupings and make reclassification adjustments where necessary.

Wahoo Creek · Jul 6, 2009

Also, don't forget you get a deduction on the next year's return for payment to the CPA.

Boudreaux · Jul 7, 2009

tzingleman said:
Thanks for the responses, everyone. I try to keep the books very straightforward, and this is the first year we've been in business, so I don't know what to expect.

How your business is set up will also determine the cost of tax planning and preparation. If you are a sole proprietor or single member LLC, you'll file a Schedule C on your 1040.

If you are a multi-member LLC or S-Corp, that means a separate tax return for that entitiy (1065 or 1120S) in addition to your personal 1040, thus more cost in preparation and planning - usually.

If your books are in good order, that's less time for the CPA having to make journal entries. But remember, just because you record something doesn't mean it's in the proper category for tax reporting purposes. Journal entries may still be necessary. But this is why you employ the CPA.

45alltheway · Jul 16, 2009

I paid $750

I paid $750 for 2008 tax with my cpa, this included both me and my wifes personal returns as well as our business LLC return and we do about $2 million per year so not bad at all, good luck.

stev · Jul 16, 2009

I ende up paying $3 k this yr .It seems like my cpa is getting higher & higher every yr.I do know our situtation is complicated though.But it seems kinda high .Have had him for 25yrs .

Boudreaux · Jul 16, 2009

stev said:
I ende up paying $3 k this yr .It seems like my cpa is getting higher & higher every yr.I do know our situtation is complicated though.But it seems kinda high .Have had him for 25yrs .

Rent goes up, software goes up 20% each year, insurance goes up at each renewal, etc.

Just because CPA rates creep up doesn't mean he's making more $$ off of your account.

$3k could be high, or it could be reasonable. Do you think he has 20 - 30 hours in your account for the year? If so, it's pretty reasonable.

elfiii · Jul 19, 2009

Boudreaux said:
Rent goes up, software goes up 20% each year, insurance goes up at each renewal, etc.

Just because CPA rates creep up doesn't mean he's making more $$ off of your account.

$3k could be high, or it could be reasonable. Do you think he has 20 - 30 hours in your account for the year? If so, it's pretty reasonable.

Yep. We're in it for the money too. If your CPA isn't making money himself, do you want him advising you how to do it?

Cost of an accountant for year-end/tax preparation?

tzingleman

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shoot

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Parker Phoenix

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tzingleman

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Wahoo Creek

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