C.P.A. fees - a standard rate

Hi Everyone,

I have a client who may be looking for a new C.P.A. - due to the fact that one we are currently using the client feels to be on the high side of fees.

My question is this - What have you seen in your businesses to be a standard rate for a C.P.A. to charge for preparing year end taxes, and meeting with the client and/or bookkeeper for up to 6 hours a year?

The rate we are being quoted is $1350.00 a year - is this high? too low? What are your thoughts and experiences?

Thanks so much for your inputs.

M

M,

Depends on the complexity of the taxes and records. CPA's are different from Accountants as they are licensed using a four part very intensive testing. In order to keep the license they must continue their education and pay an annual fee. (My daughter is starting this process now.) Those with CPA's do command a higher rate than those without.

If they are only looking for someone to handle tax preparation there are many qualified non-CPA's who can handle it at a lower rate. I would suggest that he ask around his circle for a good referral.

Luckily I have one (and hopefully two soon) CPA's in my family so that is who I use. However if I were going to switch I would first ask my most trusted friends and colleagues who they use and check out those recommendations.

Hi M.
Just to tag on to what Lee has said, it is a good idea to ask for referrals from people you trust. Even then, fees depend on the complexity, as Lee said. Another reason rates are going up is the tax code is becoming more complicated. Filings require more forms and each form is priced in the software. Software programs are expensive. Another consideration is how organized your files are when turned over. Hope this helps.
Mary Jansen