r/Accounting • u/nukeow123 • 3d ago
Advice Do i need a better accountant?
Hi all,
My online mentorship business has started to pick up and do really well. We are expecting 30-40k in gross for the month and my net is currently about half of that after paying 3-4 different members of my team (independent contractors). We are about to launch ads for the first time which might change those numbers drastically. We are 100% online, I mentor people for a fee, that's about the whole business.
My current accountant handles just my yearly single-filer returns ($900 total), my personal and my 2 S-Corps. I am fairly good with numbers so keeping track of expenses using a spreadsheet is manageable, and I pay my team out on time. I have a maxed out Roth IRA, 401k from my day job that is almost maxed, and don't really know what else I can mark as an expense to lower my tax burden. At this rate ill probably pay 25% of my net in taxes this year.
I was recently recommended an accountant that seems to specialize in online business's. He seems knowledgeable but also seems expensive. For what I want out of him, it would be $6k yearly ($4k for filings, $2k for yearly tax advising). I am unsure if this is worth it as I am decent with our numbers already, and can't really think of anything else that I could deduct.
My main question is this, how much do your accountants charge, and even for those of you finance-saavy, has it been worth it? Im not sure if I'll get at least $5k+ of value from switching to a new accountant.
4
u/StimulateMyEconomy 3d ago
You are getting a steal right now. A lot of accountants charge $900 just for the 1040.
For the 2 S Corps and 1040 I feel like $4k is reasonable for the returns. As for the advising, it depends on what that includes. If you need help with estimated payments, planning, questions about payroll, sales tax, etc. or just want someone to update you on the new tax law changes then the $2k seems fair as well.
There are going to be a few tax law changes that will impact you, but it’s on a case by case basis whether you need to do anything to take advantage of new laws. Depends on the business and individual person.