Normally fees depend on the time involved in working on your financials and taxes. Hence it would depend on the time the accountant spends on fixing the financials, reviewing and making necessary adjustment entries and preparing taxes. If, in addition, the CPA also provides consulting/advisory services than that could also ad to the fees.
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
As you say, if you have reconciled the financials and provided them with all the backup to support the same and all they are doing is reviewing and preparing your federal and state tax return than $4,000 seems to be excessive presuming this is a small business (with not much complications as may be present in case of construction business-particularly the percentage completion schedules or completed contract method accounting).
You may want to discuss this with your current CPA and also contact another CPA and get a quote from him too. If you are not getting value added service for $4,000 than you have all reasons to change your CPA and get one at reasonable fees.
Certified Public Accountant (CPA)
MBA, CPA
yes, you should have changed than. You cannot be charged so high for an initial consulation where you are trying to know each other and not receiving any value added service from a professional.
You can ask him to provide the accountants changes so that you can update your file and than provide him 2008 work. It is unusal for him to not provide the accountant's changes to update your records(normally that is part of the 2007 work that he performed and billed you for).
It is not required to provide him 2008 information. In fact if you provide him the information than you may be charged for it and you do not want to do that.
You need to find another CPA and than request the information such as depreciation schedules etc from this CPA so that the other CPA can do all the filings for you.
Thank you...sorry I wasn't clear. I finally did receive the 07 changes in November of this year after several request. I had to get them in writing instead of the file because the file would not upload. We have decided on a new CPA (the same one doing our payroll). He has all this information now and created the changes immediately. My concern would be if he can charge me for 08 books without doing them? That is why I am not sending anything. They have sent me invoices over this year stating contractual blah blah, but the contract states they are to provide me with quarterly statments, of which I never received any for 07 or obviously o8, and that contract can be canceled at any time. I wrote on the invoices that you have not been doing our 08 books. Just trying to be prepared for anything. Like I said, still haven't received the invoice for our personal return, which usually is around 1300.00 (alot)
Since they have not performed any services, you are not required to make any payment for 2008. I do not think this would be an issue since no services are provided.
Yes, the fees for personal tax returns are high but since the returns have been prepared and filed, you will owe that. You may want to ask them to bill you and pay the some before you inform them about the new CPA.
Your right!! Of course they won't realize they aren't doing our books until they get around to asking for information in April 09 to file an extension....hahaha Really, thanks for your answers. We know we need to pay our personal, just not sure how much we will be charged....time will tell. I would think you would get an invoice following the prepared return (i filed).
Thank you again.
Yes , you are right. The invoice should have followed the tax return.
All the best and make sure that you discuss the terms with the new CPA well in advance.