Accounting Question

Jun 17, 2008

  1. mariemerganser
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    mariemerganser Super Genius

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    For any of you guys that have a small to medium sized agency with 1099 agents and W2 admin. Can you give me an idea of the fees you pay your accountant? I just recently hired an accountant to run payroll, do monthly reports, put together 1099's and do my business tax returns. He plans on charging me $200/mth and then $1200 to do the business return. Is this reasonable, cheap or expensive?
     
  2. Krono
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    Krono Super Genius

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    Dunno...did you check any payroll service companies?
     
    Krono, Jun 17, 2008
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  3. xrac
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    xrac Guru

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    Sounds pretty normal to me. Definitely not out of line.
     
    xrac, Jun 17, 2008
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  4. Sam
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    Sam Founder Administrator

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    I have seen a pretty wide variance in accounting fees depending on where you live. Definitely much higher in a big city.

    We pay a lot more than that, and that sounds pretty reasonable for what you are proposing.
     
    Sam, Jun 17, 2008
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  5. Mr. Bill
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    Mr. Bill Guru

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    Sounds VERY reasonable. Monthly writeups (the bookkeeping part) run from $75-150 per hour depending on area, and $1,200 per year for the tax return is right on target.
     
    Mr. Bill, Jun 17, 2008
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  6. mariemerganser
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    mariemerganser Super Genius

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    Great, thanks for the input. Just wanted to make sure....
     
  7. padthaiforlunch
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    padthaiforlunch Guru

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    I have a tax business. $1200 for the annual return is WAY out of line for a small company.

    If the client gives me the P&L and the balance sheet, the standard rate is $350 for corp or partnership return. If the return is complex then it will run more, but still under $1k.

    As for writeup work, $50/hr. Payroll varies according to number of checks written and how often. I won't do payroll. PITA! Pay the $200.

    If you want a CPA, the rates are higher. I know of CPA's charging $75/hr. for work they have assistants do. The only real reason to hire a CPA is if you need your books audited and certified.

    Guess I need to raise the price of corp. returns.

    There are good accountants out there who aren't CPA's but are more than qualified to do bookkeeping and taxes.
     
  8. mariemerganser
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    mariemerganser Super Genius

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    I have 6 agents that are 1099 and then one admin that is W2 and then myself and husband are W2. We have reasonable expenses, nothing crazy. So, you think the $200/mth is fine but the $1200 for corp return is crazy right? He also said he would do my personal for $300. Also, I should probably say this is a friend and he says he is giving me a discount.....?
     
  9. padthaiforlunch
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    padthaiforlunch Guru

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    Personal return: $150.

    Add $25 for each schedule A, B, D, E..... Most of my clients pay $175 - $225.

    Your friend may be giving you a discount if his rates are in line with HR Block. Personally, I think they take advantage of people and are grossly overpriced considering most of their preparers only have 2 months training.

    Ok. You have convinced me I need to raise my rates next year.
     
  10. xrac
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    xrac Guru

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    You may be correct that the annual return is a little high priced although the payroll sounded very reasonable. I am not paying $1,200 for my businesses returns. In fact I have three (3) business returns done and they all total less than $1,200 but they guy I am using is cheaper than most in this area.
     
    xrac, Jun 18, 2008
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