Question for Accountants about Costs and hours

[blacklab 11941]

We need someone to do our end of year stuff for a small business. Bank account has been open a few months, all transactions are entered into quickbooks online, only about 5-10 transactions a month.

We got a proposal from an accountant for this:

General Ledger:

• General Ledger set-up review – accrual basis accounting
• Revenue and Expenses by type/division – Companies, Food & Beverage, Retail
• Reconcile General Ledger Accounts
• Cash
• Accounts Receivable
• Accounts Payable
• Review income statement entries for accuracy
• Determine if any expenses can be capitalized
• Accrue for any expenses incurred not yet received
• Close 2019 and produce financial statements

Federal and State Returns:

• 1099s – due January 31, 2020

• Contract labor
• Attorney Fees
• Rents

• 1096 – Summary of 1099s due February 28, 2020
• 1120 – Federal Corporate Tax Return due March 15, 2020
• 05-158-A Texas Franchise Tax Return due May 15, 2020

I can't see this being more than a few hours of work, maybe 10 hours at the most.

How many hours should this take? 

What's a reasonable rate per hour or total bill for this?

Anyone want to do this for us?

 

[Zwylde 812]

Does your 5-10 transactions include cash transactions?  Like 2 or 3 monthly deposits and less than 10 checks/ach payments?

If so, then yes the GL work would not take more than 4 or 5 hours, the 1099's should take less than an hour and the tax returns maybe a couple of hours.

I'm not sure what the going hourly rate is these days as I am in industry but it sounds like you have a pretty easy job as long as you have everything recorded like you say you do. 

 

 

 

[blacklab 11941]

I think we had 4 total deposits for the year, and less than 10 payments per month.

Deposits were via check, payments via paypal, check or zelle.

 

[Chewbacca 7780]

Yeah, I'd guess 10-15 hours, total (with 15 probably being on the high end).  Depending on who is doing the work, rate could be anywhere from $80-150/hr.  A lot of that will depend on how much work they need to do to set up your chart of accounts.  

[Zwylde 812]

If he's already entering all transactions in quickbooks the COA have already been set up.  That quote from the CPA looks like a boiler plate quote for all new accounts.

[Chewbacca 7780]

If he's already entering all transactions in quickbooks the COA have already been set up. 

Not necessarily. But if he has, then it's less work, for sure.

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[Brew 3049]

Depends on the size of the firm and whether you have an existing relationship. If you have the transactions entered, then you need to skip the first entire section assuming you coded the things correctly and just get your 1099’s and tax return completed. Assuming everything is in correctly, you could probably get that done for $500-$750 as it is realistically 3-4 hours or less total of a manager’s time.

If you want someone local, ask around and find someone reasonable. A lot of firms aren’t doing work under certain dollar values any more. If local isn’t an issue, PM me.

[orange dream 1254]

Once this small matter is cleared up you'll have some actionable advice.

For real though, why bother with accrual accounting?  Sounds like a low volume operation.  Why add unnecessary complexity?

If the business is profitable everything can/should be expensed instead of capitalized.

And the answer to your question is tree fiddy.

Edited December 4, 2019 by orange dream

[Brisketexan 105161]

If you approach someone, and he does NOT quote you an estimate of tree fiddy, you should look elsewhere for services.

[Upgrayedd 5815]

Is it still debits on the left and credits on the right?  I'll do it for 25 hours at $150, plus expenses.  

No drug test.

[Jerry Callo 8707]

Be weary of CPAs, they have lots of ethical rules to follow.  I much prefer accountants that see the tax codes as mere suggestions.

[deadshank 24653]

1 minute ago, Jerry Callo said:

Be weary of CPAs, they have lots of ethical rules to follow.  I much prefer accountants that see the tax codes as mere suggestions.

Mine always says, "this is our first offer to the bastards!"

[NeverMarryAStripper 21909]

When I do my taxes I always start at the bottom and work my way up

[zork 629]

4 hours ago, NeverMarryAStripper said:

When I do my taxes I always start at the bottom and work my way up

any pictures of the bottom of the lady in your avatar?

[52-80 19191]

16 hours ago, Brisketexan said:

If you approach someone, and he does NOT quote you an estimate of tree fiddy, you should look elsewhere for services.

This is actually how much Deloitte quotes for hourly tax advice.  On top of the 1500 they charge for an individual tax return.  Fuck them

[blacklab 11941]

my business partner went and had a beer with him last night armed with the knowledge from this thread.

Got him down to 1/3 of his original asking price and he threw in a couple of hours of advice a month for the next 6 months which I thought brought it into a completely reasonable price range so were going to use him.

Thank you to all that posted here.

[pearlandhorn 3274]

I’d do it for $35/hour. That’s easy stuff.

[RollLeft 5045]

On 12/3/2019 at 4:43 PM, blacklab said:

We need someone to do our end of year stuff for a small business. Bank account has been open a few months, all transactions are entered into quickbooks online, only about 5-10 transactions a month.

We got a proposal from an accountant for this:

General Ledger:

• General Ledger set-up review – accrual basis accounting
• Revenue and Expenses by type/division – Companies, Food & Beverage, Retail
• Reconcile General Ledger Accounts
• Cash
• Accounts Receivable
• Accounts Payable
• Review income statement entries for accuracy
• Determine if any expenses can be capitalized
• Accrue for any expenses incurred not yet received
• Close 2019 and produce financial statements

Federal and State Returns:

• 1099s – due January 31, 2020

• Contract labor
• Attorney Fees
• Rents

• 1096 – Summary of 1099s due February 28, 2020
• 1120 – Federal Corporate Tax Return due March 15, 2020
• 05-158-A Texas Franchise Tax Return due May 15, 2020

I can't see this being more than a few hours of work, maybe 10 hours at the most.

How many hours should this take? 

What's a reasonable rate per hour or total bill for this?

Anyone want to do this for us?

 

GL stuff is where all the profit is.  Most try and get a base price for a review of $105/month if you already have software.  (approx 1 hour per month charged, actual work 1/2 hour at best)    

$25 base fee +$5-7 per 1099, if you file electronically the 1096 is not needed

1120s start at $725 more risk than work

Tx Franchise $350 assuming 0 due

All based upon work you described.  Tell me what you paid.

 

Edited December 24, 2019 by RollLeft

[blacklab 11941]

Got him down to $1000 to do all the stuff listed and checking the books are good for the next 6 months.