I run a tiny LLC (just me, no employees) doing graphic design. Revenue is around $60k. My current accountant charges $250/month for bookkeeping and then wants another $800 for tax prep. Is that normal? I feel like I'm overpaying but I have no idea what other people spend.
Bookkeeping
How much do other small LLC owners pay for accounting?
$250/mo for bookkeeping seems reasonable if they're actually categorizing everything. The $800 tax prep is on the higher side for a solo LLC unless your return is complicated.
I pay $150/month for bookkeeping (QuickBooks and a human who reviews it) and $500 for my 1120-S. But I'm an S-corp, not sure if that changes things.
You're getting ripped off. I do my own books with a spreadsheet and pay a guy $300 flat to file my Schedule C. Hasn't failed me in 6 yearrs.
Uncle_benny, I tried the spreadsheet thing for a year and wanted to jump off a bridge. I'll pay for the convenience.
Outsourced bookkeeping can be $200-400/mo easily. Tax prep for a single-member LLC usually runs $400-800. So you're at the top end but not insane.
Ask if they're doing your payroll too. $250/month for just bookkeeping is steep.
I'm a bookkeeper (not an accountant) and I charge $300/month for clients in the $50-100k range. So the monthly fee isn't crazy. But $800 for a Schedule C? That's high.
Just call around. I got quotes from $100/mo to $600/mo for the exact same scope. It's wild out there.
Broomstickbettina makes a good point. The tax prep fee is where they might be padding. I'd push back on that part.
I pay $400/month for bookkeeping and tax prep combined. My accountant bundles it. Might be worth asking if they do that.
Bundling can save you money but sometimes it just hides the line items. I'd ask for a brreakdown either way.
Lots of good info here. I'm going to ask about bundling and maybe get a second quote. Thanks, everyone.
Still think you should fire them and buy a $30 spreadsheet template. But you do you.
Wait, does anyone else here actually use a spreadsheet? I thought I was the only one still doing that.
I did for the first two years until I realized I was spending 10 hours a month on it. My time is worth more than that.