Accounting Question

[mariemerganser]

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?

 

[Krono]

Dunno...did you check any payroll service companies?

 

[xrac]

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?

Sounds pretty normal to me. Definitely not out of line.

 

[Sam]

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.

 

[Mr. Bill]

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.

 

[mariemerganser]

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

 

[padthaiforlunch]

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.

 

[mariemerganser]

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.....?

 

[padthaiforlunch]

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.

 

[xrac]

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.

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.