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Richard
Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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I have a non-cpa accountant who has been with me for years

Resolved Question:

I have a non-cpa accountant who has been with me for years in my small business, but who has been gradually increasing fees. He does only my corporate tax, and that only once a year. He does a monthly balance sheet and does a quarterly visit.
He is charging 2.6% of my gross receipts. I want to pay 1% of gross receipts. What can I do?
Submitted: 4 years ago.
Category: Tax
Expert:  Richard replied 4 years ago.

Good afternoon. I would tell him what you are willing to pay him and if he finds that unacceptable, I would let him know you will be finding another bookkeeper. You really should only pay an hourly rate, not a percentage of gross receipts.

 

 

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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 4 years ago.
Well, my business grosses $38,000 a month. How many hours should the above take, and would it amount to the $1000/month that he is charging?
Expert:  Richard replied 4 years ago.
It would depend upon the number of transactions. But, you should remind him he's a bookkeeper not an accountant. And, it's really not that difficult to get a replacement.
Customer: replied 4 years ago.
we have about 30 transactions a day. could you make an estimate about the number of hours it would take?
Expert:  Richard replied 4 years ago.

This should all be done electronically, so I wouldn't suppose this should take more than 1-2 hours a week.

Customer: replied 4 years ago.
ok, but 2 hours/ week at$120 per hour is near the $1000/mo I'm objecting to
Expert:  Richard replied 4 years ago.
A bookkeeper is not worth $120/hour. A bookkeeper generally gets paid about $25-$30 an hour. If he were a CPA it would be different, but you don't need a CPA to simply be a record keeper.
Customer: replied 4 years ago.
do I need a cpa to do the corporation taxes once a year?
Expert:  Richard replied 4 years ago.

Not necessarily. A bookkeeper can do this for you as well, but you can also have a CPA do this separately.

 

 

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