Expensive Accountant or Not!

[BassTrackerBoats]

Problem is the deadline to due taxes is in 2 weeks. I could file a extension but It's going to bury me even more. I wish I could do my own taxes but I did them wrong before and she has to amend them.

Start with the extension... you are rushing a professional when they are a their busiest time of the year and they are going to charge for that. Any CPA that is taking on new business this time of year concerns me too. They should be so far deep into things that they don't have time to go to the bathroom let alone take on a new client with a huge pile of paperwork.

Then find a local bookkeeper like @Sephrata is saying as you will pay significantly less, get all the service you need now and really can use them once a month for under 100.00 to keep things organized.

I'm also pretty uncomfortable with such a wide range as that makes no sense to me either.

 

[Jimmy L]

Start with the extension... you are rushing a professional when they are a their busiest time of the year and they are going to charge for that. Any CPA that is taking on new business this time of year concerns me too. They should be so far deep into things that they don't have time to go to the bathroom let alone take on a new client with a huge pile of paperwork.

Then find a local bookkeeper like @Sephrata is saying as you will pay significantly less, get all the service you need now and really can use them once a month for under 100.00 to keep things organized.

I'm also pretty uncomfortable with such a wide range as that makes no sense to me either.

Thanks @BassTrackerBoats. I talked to her last night and she is going to amend my 2016 taxes, file the 2017 extension, and help set up my business. I asked her for a breakdown of cost and she said after the tax deadline and my other receipts I have to give to her, she will give it to me. I do have a lot of receipts from 2016 and 2017. She said the cost could be less depending on how much receipts I have but when I sat down with her she said all this is going to be in the ballpark of 3-4K. Does that seem right for the work I have or is she trying to screw me over. Thanks again!

 

[MisterF]

OP

"
My business isn't even setup
I made in the 6 figures (gross) but have many expenses and receipts."

If you haven't done any basic book keeping yourself, then this is a big job.

You'd be better to hire a book keeper first to sort out your stuff, then take your books to the accountant.
An accountant isn't going to want to sift through 8 carrier bags of receipts.


It's like taking a sack of potatoes to a Michelin chef to prepare them, to be cooked. You'd use a sous chef or do it yourself.

Irrespective, if the accountant costs $4k and can save you $5k of taxes.......

 

[Jimmy L]

OP

"
My business isn't even setup
I made in the 6 figures (gross) but have many expenses and receipts."

If you haven't done any basic book keeping yourself, then this is a big job.

You'd be better to hire a book keeper first to sort out your stuff, then take your books to the accountant.
An accountant isn't going to want to sift through 8 carrier bags of receipts.


It's like taking a sack of potatoes to a Michelin chef to prepare them, to be cooked. You'd use a sous chef or do it yourself.

Irrespective, if the accountant costs $4k and can save you $5k of taxes.......

Thanks for that! Since I started this business I been so unorganized and pack pretty much every product my self... now I'm paying the price. So I could give the book keeper all my receipts and they can put it in quick books? My current accountant has book keepers that are going to do that. What sucks is they can fuck me over because I don't know shit about this and they can sense that.

 

[Sephrata]

Thanks for that! Since I started this business I been so unorganized and pack pretty much every product my self... now I'm paying the price. So I could give the book keeper all my receipts and they can put it in quick books? My current accountant has book keepers that are going to do that. What sucks is they can fuck me over because I don't know shit about this and they can sense that.

Do you have many cash receipts?

Most of the bookkeeping tools can take csv files or connect to your bank so you can import things paid for via ACH or card. As long as these reconcile with your bank statements, there shouldn't be an issue. Obviously you will need to keep and sort out the receipts yourself, but the main thing is getting the bookkeeping done with as little headache as possible.

 

[MisterF]

Thanks for that! Since I started this business I been so unorganized and pack pretty much every product my self... now I'm paying the price. So I could give the book keeper all my receipts and they can put it in quick books? My current accountant has book keepers that are going to do that. What sucks is they can fuck me over because I don't know shit about this and they can sense that.

If most of your purchases etc are done online it's a lot easier.
Consider too a company credit card, so any expenses you pay on that too. Easier for a book keeper to keep uptodate with things.

 

[Jimmy L]

Do you have many cash receipts?

Most of the bookkeeping tools can take csv files or connect to your bank so you can import things paid for via ACH or card. As long as these reconcile with your bank statements, there shouldn't be an issue. Obviously you will need to keep and sort out the receipts yourself, but the main thing is getting the bookkeeping done with as little headache as possible.

Yes, I have all my receipts. Most of receipts I have used early on was on my credit cards. She never asked for my banking statements. I don't have a business checking. I use PP and my credit cards for advertising etc and I have all the receipts. She told me I need to get a business checking to keep personal away from my business. My business been tanking due to this going on... my fault!

 

[Jimmy L]

If most of your purchases etc are done online it's a lot easier.
Consider too a company credit card, so any expenses you pay on that too. Easier for a book keeper to keep uptodate with things.

Yeah, I used PP business card for most of my expenses and my amex that is a personal CC for my expenses so I have all receipts.

 

[Sephrata]

Yes, I have all my receipts. Most of receipts I have used early on was on my credit cards. She never asked for my banking statements. I don't have a business checking. I use PP and my credit cards for advertising etc and I have all the receipts. She told me I need to get a business checking to keep personal away from my business. My business been tanking due to this going on... my fault!

I use Xero, but basically I am always asked to show PDF or scanned copies of my bank/card statements so they can make sure my Xero balance reconciles correctly against my actual bank/card statements. I've very rarely been ask to show actual receipts.

In terms of separating business and personal, then this is basic practice and anyone should do this. Things get messy when you start mixing business and personal expenses.

Edit: I should add, you should use Wave (https://www.waveapps.com/accounting/). You can take a picture on your phone of your receipts and it will automatically fill in the data for importing into their accounting tool. It's also a free tool!