[re_guderian]

I'm new to using CPA's. Found one recommended by a friend for both personal and business taxes. What's reasonable for fees? Is $150/hr typical? I know squat about business finances and taxes, so whatever I spend is good investment, just don't know if this is in line with going rates.

[cary]

It's sort of like asking how much is a reasonable price for a car. It is going to depend on what the going rate is in you area. For example, in NY, top partners at Big 4 accounting firms are asking $1000/hr.

Off the cuff, it sounds reasonable, but you really have to ask around in your town. To give you an idea, here in CA, billing rates for attorney's vary by close to 50% from San Francisco to Sacramento and they are only 90 miles apart.

[NorCalDoug]

Originally Posted by cary

It's sort of like asking how much is a reasonable price for a car. It is going to depend on what the going rate is in you area. For example, in NY, top partners at Big 4 accounting firms are asking $1000/hr.

Off the cuff, it sounds reasonable, but you really have to ask around in your town. To give you an idea, here in CA, billing rates for attorney's vary by close to 50% from San Francisco to Sacramento and they are only 90 miles apart.

true.


btw...I know that cary knows, but the difference in rates between Sac and SF is due in large part to the difference in the cost of living between the two areas.


rates differ in different areas.

[97 FZJ80]

What is your requirments for the CPA? Do you need someone to keep your books? File your taxes? Audit your financials to report to shareholders?

For most small businesses that do not have a full-time CPA/CFO, a good CPA can perform the duty for $100-$250 per hour. If you spend any less than that, you might want to seriously consider hiring a bookkeepr or use a software like Quickbook.

[re_guderian]

Originally Posted by 97 FZJ80

What is your requirments for the CPA? Do you need someone to keep your books? File your taxes? Audit your financials to report to shareholders?

For most small businesses that do not have a full-time CPA/CFO, a good CPA can perform the duty for $100-$250 per hour. If you spend any less than that, you might want to seriously consider hiring a bookkeepr or use a software like Quickbook.

Yes, yes, and no. I have pretty simple needs. I have been doing some real estate developing, but as a sole proprietor business. Just set up an LLC, and need to transfer some assets over. LLC only has 2 members, no other shareholders. Transactions are few, so bookkeeping should be light. Again, I'm a total newb to this, so I'll be leaning heavily on the CPA.

[White Shark]

I avoided the CPA directly and went with an IRS Certified Tax person, blah, blah, Book Keeper of 25 years. She works for a CPA, but does 99% of the stuff he does, but without the killer CPA direct consultation bill. She has skills and knows her stuff.

If I had more complex needs, I am sure that the CPA could cover them, but for now, the Book Keeper / Tax Advisor stuff is really all I need.


[Edited to clarify my previous statement]

..

[Fly Rod]

IIRC, real estate development accounting is a little trickier that your average small business accounting. Interview at least three accountants for the job. Ask specifically about thier experience with construction accounting. Interview the one referred to you last. By then you will know what to ask them about thier experience. The rates you were quoted are middle of the road. You should use an experienced book keeper to do the day to day/month end accounting. Use the CPA for technical matters.

I was a coporate accountant for years so never practiced construction accounting. It just pops up in the grey matter that it was a PITA.

[e rock]

Find a good CPA and let him set up your Quickbooks in a manner that makes it easiest for him to do his job. It's worthwhile for you to learn to maintain this stuff rather than paying him for everything, especially since you'll have very few actual transactions to keep track of.

I have a CPA friend Dave that handles taxes for several other friends that have small businesses. I think he charges in the $120-150/hr range for them, but that applies to everything including simple phone calls. My wife does the day-to-day bookkeeping for several of them, and maintains the QB files such that Dave's time investment (and their bill) is as minimal as possible. She only charges $20/hr since it's for friends and she gets to make her own hours working from home.

For your situation, it makes sense for you to keep your own records and only pay when it's necessary; even then you might as well make it as easy and painless as possible for him. If all you have to do is email him a backup of your QB file, it'll be a lot cheaper than showing up with a grocery bag full of receipts and bank statements.

HTH,
Eric

[lc69hunter]

I'm a CPA (also an Enrolled Agent) in Tucson. My rate varies depending on the services I provide.

My personal billing rate for consultation/planning is $125-150/hr. However, for bookkeeping/payroll, etc, I bill my bookkeeper out at $45-50/hr. For computer/software installation/setup/training, I bill out at $75/hr.

As mentioned before, ask the serious questions, and have an idea of what you are expecting the CPA to do for you. I know some CPA's who will bill whatever they think they can get out of you. Also, may CPA's, if they think you have growth potential, will initially bill you at a lower rate and tell you that as you grow, so will your bill, because they know that startups generally don't have the money for the services they need.

Also, as mentioned before, not everyone is knowledgeable in all areas. Ask around.

[re_guderian]

Originally Posted by Fly Rod

IIRC, real estate development accounting is a little trickier that your average small business accounting. Interview at least three accountants for the job. Ask specifically about thier experience with construction accounting. Interview the one referred to you last. By then you will know what to ask them about thier experience. The rates you were quoted are middle of the road. You should use an experienced book keeper to do the day to day/month end accounting. Use the CPA for technical matters.

I was a coporate accountant for years so never practiced construction accounting. It just pops up in the grey matter that it was a PITA.

Good advice. This one was recommended by my friend who does a large amount of RE development, so I'm sure he's on top of that.

[apeterson]

I am also an accountant... here in Mn pretty typical billing rate is 100-150... doing taxes we charged by the form that needed to be filed... bookkeeping is always bid on depending on what you need...

realestate is complicated and you guy (if he is good) should save you at least his fees in taxes.. depending on what you are doing...

[Benson]

Good advice from lc69hunter. More important than fees is expertise in your area. It's impossible to know it all so take your time finding someone with real estate experience. That shouldn't be hard.

Rates can fluctuate depending on the time of year you are requesting services so plan accordingly.

James - CPA

[re_guderian]

Best. Money. Ever. Spent.

[Fly Rod]

Originally Posted by re_guderian

Best. Money. Ever. Spent.

Tis a little known/acknowledged fact that a good accountant is worth his weight in gold. A poor accountant will cost you your weight in gold.