What does your Accountant do?

Da Capo

Da Capo

New member
Nov 12, 2010
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Los Angeles
So it's tax season and I am considering changing accountants. I hear a lot people brag about how much their accountants are saving them but I am wondering what the hell they do that saves you so much money?

If you aren't incorporated they can recommend you setup a corporation and you save on self employment tax. That I get.

My accountant charges about $2500 to do my S corp and personal taxes. I send him a spreadsheet of my income and my deductions (employee benefits, professional fees, supplies, and utilities).

He bills me $325/hr to fill out all my information, neatly organize it, and also print out my quarterly payment vouchers.

It saves me the time from doing it myself, but I don't see any creative tax savings, it's just filling out the information I sent him. Am I expecting too much or is this basically what your accountant does for you?
 


The accountant keeps track of things and is filling out the information you send him. The tax lawyer helps you legally save taxes. So, get a tax lawyer.

Probably when people are saying accountants save them money is because an accountant keeps track of everything and makes sure you're all good with the paper and receive no penalities.

Just as a disclaimer, this is what I've learned in the last days/weeks.
 
Mine looks after my money, looks after me, washes my clothes, makes me dinner, gives me private time and tucks me in at night.
 
Just like SEO's, there are blackhat accountants, whitehat accountants, and accountants that fall in the middle somewhere. It all depends on your risk tolerance, and how far you want to push things with your local tax authority.

To get the most out of your accountant you need to let them know what kind of big moves you are planning in the upcoming year or two. Things like buying a house, financing a car mean you need to keep your income high in certain years to get approved for loans. Things like the sale of an asset, an inheritance, cashing out investments means you need to keep you other income lower that year so you don't pay too much tax.

You can't hide income unless you are offshore. If the money is hitting your bank account you are on the hook for it. However, a good accountant can manipulate your expenses to create a low income year or a high income year, depending on your goals.
 
$325/hour ?!?!??!?!?!??! that sounds super high to me.

Do you have any friends IRL who recommends their accountant? thats the best way to find a new one IMO.

also, why don't you use a bookkeeping software like quickbooks? that's like the industry standard.
 
My experience is a cheap accountant means you pay for it at year-end.

Paying 300-500/hr for a 'top quality' accountant that knows their stuff ends up saving me a lot in the end. Easily 2-5x the couple-grand more they cost than the 100/hr folk. Do I like to pay that much? Nope. Do I like to drive 3hrs if I need to meet them? Nope.... but having someone in Silicon Valley that actually knows the tech + accounting + has a lot of history = good for me.
 
ToddW said:
My experience is a cheap accountant means you pay for it at year-end.

Paying 300-500/hr for a 'top quality' accountant that knows their stuff ends up saving me a lot in the end. Easily 2-5x the couple-grand more they cost than the 100/hr folk. Do I like to pay that much? Nope. Do I like to drive 3hrs if I need to meet them? Nope.... but having someone in Silicon Valley that actually knows the tech + accounting + has a lot of history = good for me.
Click to expand...


If I profited $1,625 last year...is is still worth it to hire the accountant at $500 /hr?
 
holy crap your getting screwed, you should only be paying your accountant $400 dollars to do a business tax return, get a book keeper off of craigslist and have them come to your business/house and sit at your table while they enter your receipts into an accounting software like quick books, then take that and your returns to an accountant and tell him or her to fill out the forms that you are only paying $400, that's what I pay, also personal should be MAX no more then $100 dollars... fyi this is Canadian rates, I dont know what USA accountants charge but I cant see it being much more.
 
as i sit here cranking thru my 2013 payroll pmts/filings, i'm not all that pleased with all the little "slip-in" taxes and regs that have popped up on my tax requirements in the past few years. its not so much the extra money, but the exponential increase in "see line X on form 42 if you are a purple, if not, see line Q and fill out form 327, unless you've experienced condition S5 - S9, then fill out form 231, otherwise...."...

if i had been in any way unclear which party made our tax code the fucking joke it is today, i get it now.
 
An accountant helps manage your finances, ensuring you make informed decisions and stay on track with your financial goals. Here are the key roles:

  1. Manage Finances: Track income, expenses, and transactions.
  2. Tax Preparation: Ensure compliance with tax laws and find savings opportunities.
  3. Budgeting: Create budgets based on your financial situation.
  4. Payroll: Handle employee salaries and legal requirements.
  5. Financial Advice: Offer guidance on investments and managing risks.
  6. Auditing: Review financial records for accuracy.
An accountant’s primary role is to help you achieve financial stability and success. Financial literacy is a fundamental right for everyone.
For more, visit: https://daniyalkhatriacca.com/
 
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