Did I pay to much for my S-Corp tax return?
I paid about $2500 for my small businesses taxes. There were about 25 depreciated items. We had about 160K net sales. I'm not sure where all the time went? The statement of work my accountant gave me said generic services like "Year End Accounting", "Tax Return Review", "Tax Return Preparation". The rates are 80/hour and 150/hour. 1.2 hours at 150 and about 29 hours at 80/hour. Any ideas?
Public Comments
- That does sound a little too high. However, it all depends in what shape your books were in. Do you do your bookkeeping on a monthly basis? If you don't keep your books in good shape and you just drop a pile of bank statements and receipts off to your tax preparer, and they really had to spend 30 hours going through it, then it is what it is. I'd recommend keeping your books in shape and getting someone to do it on a monthly basis. That way, at the end of the year you can hand it off to your tax preparer and they wouldn't have to do that much work - for a return like yours I charge about $600 if the client has everything in order. Plus, if you do your books on a monthly basis you can actually see what's going on in your business and know if you are making money every month as opposed to waiting until the end of the year to see how your business is really doing. It gives you the opportunity to make changes as you go, and make your business better. I hope that helps.
