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4 Replies Last post: Nov 14, 2007 3:22 PM by LUCKIEST

CPA charges

Oct 12, 2007 8:11 AM

Click to view lifestar's profile Start-up lifestar 2 posts since
Oct 12, 2007
We have a SMALL business that is run out of our home. My Dad, who was also my business partner died in 2006. He handled all of the financials and taxes. When it came time to have our business taxes done for 2006 - we went to a new CPA. She filed an extension for us so that we would have time to catch our breath and figure things out. I knew that her charges to prepare the corporate taxes were going to be about $300+ which sounded fine. The CPA's office staff was very unorganized.... constantly losing paperwork, never received faxes or emails when they should have. While annoying, they finally received everything they needed after we would submit each thing two or three times. When we received the bill it was $1000. She said the extra charges were "database entry" fees. Does this make sense? This seems way off the mark- however, since I have not handled the corporate taxes before, I may be wrong. Does anyone have any input? THANKS!
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Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
1. Re: CPA charges Oct 12, 2007 12:55 PM
Your CPA may have put your account into Quickbooks. A data entry charge is reasonable in some cases. 1000 for a business return does not seem to be unreasonable as a total. If they did put your account into Quickbooks then you can get a electronic file, that will show the journal entries and the closed out year.

I would be more worried about the fact that the office is so disorganized and does not seem to be able to keep a handle on your information. If it were me I would ask about the database and just what they entered, and get a copy of it. If the fees were for Turbo tax I would contest the fees.

And last.....get your file from the CPA and find another one. Otherwise you just repeat your misery each tax season.
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,938 posts since
Aug 6, 2007
2. Re: CPA charges Nov 14, 2007 1:33 PM
Re the $1000. bill from the CPA's office Since Oct 12, did you pay it??
To me it sounds like you could have compromised the fee at a lower figure. Get all your paper work back
and shop around for next year. It is best to find an accountant before the end of the year.
LUCKIEST
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Click to view Ed O'Gee's profile Mogul Ed O'Gee 215 posts since
Oct 25, 2007
3. Re: CPA charges Nov 14, 2007 2:05 PM
1000 seems about right for a return but not for the service you received. The two previous posters were right, as DomainDiva said, I'd be real concern about the security of my information. If the returns included personal information, such as social security numbers, etc. of the company owners, I'd order a copy of my credit report and monitor it because you never know. I'd also monitor the business credit report as well if they were that sloppy.

Like Luckiest, I'd say if you haven't already paid, you should negotiate a lower bill. I get my business and personal taxes done at a mid-size CPA firm here in Columbia and I pay about $1100. Very good, timely service. Strict information security procedures. That is what you want in an accountant.
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,938 posts since
Aug 6, 2007
4. Re: CPA charges Nov 14, 2007 3:22 PM
in response to: Ed O'Gee
Like Ed said, It is NOT how much you pay your Accountant. Whether it is $300, $500, $1000 or more.
It is the RELATIONSHIP (and hopefully you and the Accountant will build a stronger relationship each year).
The Accountant needs to earn so much per hour. As your company grows, so does his fees.
Funny, We never complain about Doctors fees. (but I don't want to go there)
LUCKIEST
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