Accounting Fees - Seems Way Too Much!

[Greg P.]

Hello, we rehabbed around 12-15 properties last year and although some of the transactions were a bit complicated because we did a few double closes and what not, it should be easily figured out by a "Real Estate" Accountant whom I hired. At first things started to go well, but as we started to get into the bookkeeping he started to repetitively saying he did not want to file for taxes with incomplete paperwork because he didn't want to risk his license. This is something I understand, but it seems like he asks the same questions over and over and I just feel like he isn't doing things efficiently. Nothing against age, but he around 70s and the reason I chose him was because he was promoted through our REI Club. I'll admit our books were really not organized, but I received a bill for around $10k! To me, this seems too much as he constantly asks the same questions, and keeps wanting more information. It's been a headache. Any thoughts on bill? Thanks all.

[Deborah Smith]

Did he provide you with an engagement letter? CPAs are required to do so - and that would outline his estimate of billing to you.

Not sure why he'd be asking for the same info repeatedly - but in his defense (as a fellow CPA) you are likely (and hopefully) much more in touch with the ins-and-outs of your transactions than he is, and sometimes it takes us a little bit to really connect all the dots. Remember, he's learning what you did, from a financial perspective, from whatever paperwork you gave him, and in a much shorter time than it took to do the transactions.