Forums: Discussions for entrepreneurs and small business.

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AJ

We have our accountant do monthlies so he is up to date with our taxes. If we only hired him to do our taxes annually, he would charge the exact same amount as he would have to go back through and do each month just as he does now.

We pay considerably more than $100 a year for our accountant to do taxes and we give him our very organized files each month.

Not sure what one gets for only $100 a year to do business taxes. We are very content with paying a monthly fee because we know that our accountant goes through our books (QuickBooks) with a fine tooth comb every month and makes sure everything is done in a way to satisfy the IRS.

Now, if we could get all of this done for $100, we would be beside ourselves happy. Then again, our CPA would not be in business for very long.

I am a CPA and I would say that being organized with your bookeeping or financials is very important.  It makes everyone`s life easier.  I also think that you should expect more from your accountant than to just prepare your tax returns.  He/She should be advising you throughout the year on various transactions that have tax effects.  This is called tax planning.  The key to minimizing one`s tax liability (note you cannot avoid taxes, that is illegal) is to consider taxes throughout the year in your day-to-day operations.  I will be the first to admit that CPA`s are expensive.  Some are worth the price, others are not.  My rule that I try to go by is I should deliver, at a minimum, a recommendation for each fee-based task I perform that meets or exceeds the fee I am being paid to perform the task.  So AJ, your accountant should be finding, at a minimum, $100 additional of tax savings in your records.   Otherwise, if your records are that good, why not just do the return yourself?  All the instructions are on the IRS website.  My .02.  Good luck!    

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AJ