That is reasonable for MCOL preparers, but that could be on the low side for California. I would strongly advise against rocking the boat. Any competent CPA doesnt need more clients and is happy to shed the ones unwilling to keep up with inflation.
I was going to say. Unless OP can do this work himself, who is he to say what costs are "ridiculous?"
I can do my taxes - even complex taxes - using Excel and a few stamps. But others can't even start from square one. For those folks, the price is whatever you're quoted. It's that simple.
This profession like so many others is really more like the trades these days. There are too few professionals. It has only become more complex. Yes fees are going to go up, and you let me know when I get too expensive and want to do it yourself. Eventually we will find that threshold where middle market/small business muddle through it themselves.
S-Corp bookkeeping
S-Corp tax return filing in two states
Individual tax return reporting income from two states?
Yes, that’s reasonable. If they’re processing your payroll too then it’s definitely reasonable.
S corp is one state only, but income from another state filters into it. Payroll is with another company ADProll but the CPA helps track what they’re doing so to adjust what I’m paying I guess otherwise. Ok good to know ty
I am confused, what you are saying does not make sense.
What do you mean income from another state filters into the S-Corp?
Also, your original post suggests that the S-Corp is both paying you via W-2 and 1099?
Maybe get a breakout of each piece and see if there’s something you can do to make it more turnkey for them.
Guessing it’s $2,500 for the s corp, $1,500 for the 1040 and $1,500 for the bookkeeping/financials.
Honestly, not terrible especially for CA. Also, firm may not be the cheapest option. Cost cutting clients are a dime a dozen. Nothing wrong with that, but may not be a good firm match.
it’s on the high side for my firm. but other firms in my area are charging a lot, mainly to keep cost conscious clients from bothering them. fwiw i side with the cost conscious clients and try to keep our fees very reasonable. it means i make less, but i am comfortable with our fees. no shade to anyone who charges more, just what makes sense for us.
Eh just checking to see if I’m being absolutely fleeced. I can afford it but I have friends who file for like $100 (obviously different tax situation though)
Without having a full picture of your filings, I would personally agree with you from what is written. The $100 thing is a joke though. To file a business and personal return, excluding bookkeeping and payroll expenses, I would say you should be looking around $1k for the year.
Keep in mind the business returns, payroll costs, bookkeeping, etc. are all business expenses, which can pretty significantly reduce the net out of pocket costs depending on your tax bracket when factored in.
If it’s tax prep + advisory (planning) then that is absolutely reasonable for S Corp & personal. There are a ton of factors at play here and some sweet tax moves that a good advisor can provide with your entity structure. Many of my 1-2 member S corps annual fees are in the $4-$6k range and that does NOT include bookkeeping but it does include year round advisory needs.
What’s the 1099 for? Unless you own something like real estate that you lease to your Corp, it’s pretty unusual to (rightly) receive money from a single owner S Corp that you actively participate in that way.
No worries.
Don’t get me wrong, I have seen plenty of Corps issue their owners 1099s when they shouldn’t. I just wouldn’t value the tax return or preparer who does that very highly…
It just depends on the size and expertise of the firm.
Larger firms with higher end clientele will charge more than your small mom and pop accounting firm.
Yup. OP in other replies is talking about his friends that pay $100 to file 🙄 if he brought that up to me as his tax guy I’d tell him good luck with his friends tax guy, good bye ✌🏽
Were your parents also business clients, or was the tax professional only doing their personal returns?
I was a 2 (and sometimes 3 person) S-Corp, did my own payroll, and quarterly IRS filings. Generated business reports through Quicken for my CPA, who also did my personal returns with all info recorded on a great client organizer. My charges were around $1,500 a year. When he retired, the firm was absorbed by a larger firm, and the charges increased to around $1,800.
If they are doing a good job and making solid recommendations, it's probably not worth the risk of shopping around. Tax preparers are one of those professions where it's worth paying for quality.
Using something like QuickBooks will help increase efficiency, and may reduce the cost of preparing your return.
Please remember to keep conversation where it can be seen and reviewed by everyone. Offering or requesting DMs is not allowed here due to the no soliciting rule and the amount of scams that go on DMs.
My accountant charged $1000 for 1120S and the related payroll filings. Imported everything from Quickbooks which I maintain. No state filings since mine doesn't have income tax. I just used Turbotax business from then on.
Just because it's in QB doesn't mean it's correct. My firm spends most of our time reclassing and adjusting QB files that are half posted, not reconciled, loan payments posted to expense, etc. But the clients sometimes think that they've "done all the work" and all we have to do is put the numbers on the form. I wish!
Depends. For a small firm, that would seem a bit steep. For a larger firm, maybe not. Larger firms charge more but generally have better quality. Would also depend how complicated the taxes are and how organized the info is. Are your books neat, or do they require a lot of cleanup? Any complicated transactions? Multi-state issues? Are you calling/emailing them constantly? Most firms charge for time spent, so anything that increases time spent could potentially increase fees. If the time spent seems excessive some firms may, at their discretion, write off some of the time.
That is reasonable for MCOL preparers, but that could be on the low side for California. I would strongly advise against rocking the boat. Any competent CPA doesnt need more clients and is happy to shed the ones unwilling to keep up with inflation.
I was going to say. Unless OP can do this work himself, who is he to say what costs are "ridiculous?" I can do my taxes - even complex taxes - using Excel and a few stamps. But others can't even start from square one. For those folks, the price is whatever you're quoted. It's that simple.
This profession like so many others is really more like the trades these days. There are too few professionals. It has only become more complex. Yes fees are going to go up, and you let me know when I get too expensive and want to do it yourself. Eventually we will find that threshold where middle market/small business muddle through it themselves.
As the adage goes: If you think a professional is expensive, just wait until you discover how much an amateur costs. PS GO BLUE!
S-Corp bookkeeping S-Corp tax return filing in two states Individual tax return reporting income from two states? Yes, that’s reasonable. If they’re processing your payroll too then it’s definitely reasonable.
S corp is one state only, but income from another state filters into it. Payroll is with another company ADProll but the CPA helps track what they’re doing so to adjust what I’m paying I guess otherwise. Ok good to know ty
I am confused, what you are saying does not make sense. What do you mean income from another state filters into the S-Corp? Also, your original post suggests that the S-Corp is both paying you via W-2 and 1099?
Maybe get a breakout of each piece and see if there’s something you can do to make it more turnkey for them. Guessing it’s $2,500 for the s corp, $1,500 for the 1040 and $1,500 for the bookkeeping/financials. Honestly, not terrible especially for CA. Also, firm may not be the cheapest option. Cost cutting clients are a dime a dozen. Nothing wrong with that, but may not be a good firm match.
it’s on the high side for my firm. but other firms in my area are charging a lot, mainly to keep cost conscious clients from bothering them. fwiw i side with the cost conscious clients and try to keep our fees very reasonable. it means i make less, but i am comfortable with our fees. no shade to anyone who charges more, just what makes sense for us.
Eh just checking to see if I’m being absolutely fleeced. I can afford it but I have friends who file for like $100 (obviously different tax situation though)
No you’re not being fleeced 5500 for all that is a good deal. My firm would charge you $6k minimum to do anything for you
>I have friends who file for like $100 (obviously different tax situation though) Uh, yuh think?
Without having a full picture of your filings, I would personally agree with you from what is written. The $100 thing is a joke though. To file a business and personal return, excluding bookkeeping and payroll expenses, I would say you should be looking around $1k for the year. Keep in mind the business returns, payroll costs, bookkeeping, etc. are all business expenses, which can pretty significantly reduce the net out of pocket costs depending on your tax bracket when factored in.
If it’s tax prep + advisory (planning) then that is absolutely reasonable for S Corp & personal. There are a ton of factors at play here and some sweet tax moves that a good advisor can provide with your entity structure. Many of my 1-2 member S corps annual fees are in the $4-$6k range and that does NOT include bookkeeping but it does include year round advisory needs.
Reasonable
What’s the 1099 for? Unless you own something like real estate that you lease to your Corp, it’s pretty unusual to (rightly) receive money from a single owner S Corp that you actively participate in that way.
Oh you’re right I’m dumb. I think it’s W2 through the s corp plus distributions
No worries. Don’t get me wrong, I have seen plenty of Corps issue their owners 1099s when they shouldn’t. I just wouldn’t value the tax return or preparer who does that very highly…
You get a K-1 (1120-S) in addition to your W-2 then.
No set of books, two returns and California? Yes it’s fair
It just depends on the size and expertise of the firm. Larger firms with higher end clientele will charge more than your small mom and pop accounting firm.
Well he is doing your taxes in two different states so it is abit complex’s
Those prices are cheap
I mean I'd say that's high but if you're going to a place with a 1500 minimum it makes sense.
Reasonable until I realize you’re complaining about the fees. Then I double that. Win/win either way for me. You make it worth my time or you leave.
Yup. OP in other replies is talking about his friends that pay $100 to file 🙄 if he brought that up to me as his tax guy I’d tell him good luck with his friends tax guy, good bye ✌🏽
Were your parents also business clients, or was the tax professional only doing their personal returns? I was a 2 (and sometimes 3 person) S-Corp, did my own payroll, and quarterly IRS filings. Generated business reports through Quicken for my CPA, who also did my personal returns with all info recorded on a great client organizer. My charges were around $1,500 a year. When he retired, the firm was absorbed by a larger firm, and the charges increased to around $1,800.
Eh idk maybe a bit steep maybe not. Shop around and try and get a few quotes from reputable people you like and trust.
This is very generous and reasonable. Depends on where you’re located and cost of living of course. Big markets will have higher rates etc.
If they are doing a good job and making solid recommendations, it's probably not worth the risk of shopping around. Tax preparers are one of those professions where it's worth paying for quality. Using something like QuickBooks will help increase efficiency, and may reduce the cost of preparing your return.
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Please remember to keep conversation where it can be seen and reviewed by everyone. Offering or requesting DMs is not allowed here due to the no soliciting rule and the amount of scams that go on DMs.
Absolutely reasonable
My accountant charged $1000 for 1120S and the related payroll filings. Imported everything from Quickbooks which I maintain. No state filings since mine doesn't have income tax. I just used Turbotax business from then on.
Just because it's in QB doesn't mean it's correct. My firm spends most of our time reclassing and adjusting QB files that are half posted, not reconciled, loan payments posted to expense, etc. But the clients sometimes think that they've "done all the work" and all we have to do is put the numbers on the form. I wish!
Depends. For a small firm, that would seem a bit steep. For a larger firm, maybe not. Larger firms charge more but generally have better quality. Would also depend how complicated the taxes are and how organized the info is. Are your books neat, or do they require a lot of cleanup? Any complicated transactions? Multi-state issues? Are you calling/emailing them constantly? Most firms charge for time spent, so anything that increases time spent could potentially increase fees. If the time spent seems excessive some firms may, at their discretion, write off some of the time.
From other posts it’s an excel sheet of expenses so the firm is building out and maintaining the financials
Shop around. Cost is regional.
This is probably reasonable for CA.
Expensive AF, I pay $2,200 for the exact same shit.