Accountant Fee to High?

[Andrew Pettit]

Morning,

            My current accountant charges me $725 to do my taxes for my three properties. Is that normal? Or should I go somewhere else?

Thanks. 

[Kory Reynolds]

"It depends".

Pricing is all over the place for accounting firms.  Personally, based on the demand for CPA services in my area with any level of specialty, $750 is fairly low.  Many accounting firms around here (New Hampshire) start at $1,500 - $2,000 no matter how simple the situation is.  Some start much higher than that.

In our area it is simple supply and demand - there is a very large demand for our services, there is limited capacity to provide services.  Similar on the employee side...there is a very high demand for employees, and a relatively small supply of those willing to do the work.  Combine the two - we get high fees.  Our area is not unique, this is a nationwide issue (opportunity) for accounting firms.

In the end I think many would be well served to think of their CPA/EA as they do an attorney - while they can also help provide planning advice to better structure your tax life and save some money, a portion of the cost is just a cost of doing business - you are required to be compliant by the Feds / states / etc, and the CPA/EA is insurance to ensure you get it right and stay out of their way.