posted on January 20, 2003 07:18:33 PM new
I'm kinda curious as to what most of you are paying for your CPA services. Any pointers on what to look for in a good one?
posted on January 21, 2003 05:34:02 AM new
the best is to talk to a few and find out how much they charge,your local merchants can also recommend.
35-75 dollars an hour.
posted on January 21, 2003 01:20:33 PM new
you should be able to find one for less than 200 dollars an hour,however they are afraid of quicken and other tax software/
posted on January 22, 2003 01:44:56 PM new
Should think it would depend on the cost of living in your area which would be reflected in the hourly charge of a CPA. In short, if you live in Mississippi, it is going to be a lot cheaper than say San Francisco Ca. or Newport Beach Ca.
buyhigh
posted on January 23, 2003 10:27:11 PM new
Y'all said:
what most of you are paying for your CPA services?
35-75 dollars an hour
Wow! I'm a CPA with an MBA and I made more than this as a financial analyst! Yikes, I'd better get a PHD!
Seriously, the person who said it varies is right. But $35? Nope. 90-200 in my area and believe me you get what you pay for!
As to the turbo tax thing, we aren't scared of them, in fact, we're grateful, and some of us even use it for simpler returns.
Problem is some people can't answer questions and if you can't answer the questions properly you can't file taxes correctly either. Like money in my wife's hands, it could be dangerous.....
If you don't trust yourself get a good tax person. Doesn't even have to be a CPA, my mentor didn't even have a bachelor's degree. A good tax person will save you much more than the fee. I charge between $250 and $300 for a 1040 with a Schedule C and supporting schedules. Could be cheaper if it's really simple and could be more if it's tough.
When I had my 10 retail stores operating, I had my own CPA. Just didn't have the time to even try.... Don't have that problem anymore!
posted on January 24, 2003 12:52:38 PM new
Great thread. Hey Retailguy (or anyone else who might know), how do CPA's stack up against the more well known tv tax preparer companies (you know who I mean). Are CPA's looking to do a more thorough job, and are the big tax prep companies seen on tv really looking to do a good job for their customers? Or are the big name co's just trying to get you in and out of their office quickly, not really caring if they get you the best legal tax reductions possible? I'd really like to know, since I go to one of these aforementioned tax prep companies every year. I just can't afford a CPA, because it's all I can do to just pay the taxes themselves, much less a CPA, as much as I'd like to.
Being self-employed, I'd love to know the pitfalls of dealing with the more well known tax preparer companies, as I have a sinking feeling they could be doing more for me.
Thanks in advance for any and all tips (or further insights on the tax prep industry) that anyone on this board might have.
posted on January 24, 2003 10:25:36 PM new
Jack (& others),
Comparing the US famous tax service, that also holds classes to a CPA is like comparing McDonalds with Ruth's Chris Steak House.
The only way the tax service makes money is to "run you through the turnstile" as fast as they can. Time is money, and the more tax returns they can do for the 80.00 or so in an hour, the more the branch makes.
That isn't to say that they aren't giving you reasonable value, but how much can that person save you when their experience with your business is a 15 minute interview? That's like expecting your mechanic to fix your new car with a $2.50 socket set. Sometimes it will work, but most of the time it's a disaster waiting to happen.
A CPA that is doing their job should be saving you more than their fee to prepare the taxes. That is not just on a refund or lower tax due, that is on sound financial advice on how to do things better next year. As there is with any sound investment, payback takes a while. You have to get to know them, and trust them, and they have to get to know you, AND your business.
Not just TAX advice either, a CPA is fully qualified to advise you on operation of your business, selecting proper software to run the financial end of your business, tax shelters, financial planning, the list goes on, and on.
If you are using a CPA and not getting those things, or getting offered those things, you're with the wrong people. Remember, a CPA should bring VALUE to your business. Thinking of a CPA's fees should not be put in the framework of COST, but INVESTMENT.
Again, if you aren't getting those things, you're with the wrong firm. CPA's aren't all honest either. The sharks swim in every field. Shop around, interview them as you would an employee. Ask them straight out what they can contribute to the bottom line of the business. Ask them if they just prepare taxes (some do) or if they focus on consulting, or financial preparation.
Finally, I understand the "sticker shock" of a CPA and 200.00 per hour. But the real question may be, what are you losing out on by not having sound financial advice? Might be an extra 10% in sales that you could make, could be a cost reduction in an area you've never thought of. Maybe that CPA can do your taxes in 3 hours and save you 1000.00 in fed and state taxes, saving you $400. after their fee. Maybe a little examination may help you save big next year by handling the purchase of an asset or an automobile differently.
I've got a 96 Dodge 3/4 ton pickup with 160,000 miles on it and I've deducted EVERY single mile. What is knowing the legal way to do that worth? A CPA can advise you on the proper way to purchase that vehicle for your circumstances that maximizes the benefits you can receive. That's just the tip of the iceberg.
posted on January 25, 2003 11:11:45 AM new
Hi Retailguy, and thank you very much for the reply and further information. I think it's time I start calling around for CPA quotes, before I have my taxes handled yet again by Nationally-Known brand X. Many times I felt they could have done more for me, and each year, if I hadn't been standing right there during the tax prep, they would have missed and messed up so many aspects of my business life that I had so meticulously prepared for them. Plus, good luck reaching them when you have a question after they've already been paid. LOL!
Anyway, I appreciate the info! Now to do something about it! Thanks again.
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