No announcement yet.

CPA fees form 1065 and Schedule K-1

  • Time
  • Show
Clear All
new posts

  • CPA fees form 1065 and Schedule K-1

    New MMLLC taxed as partnership with 4 members. Doing our own bookkeeping and payroll using QBO. How much should we expect to pay for a CPA to file form 1065 and and generate K-1 statements? Will be a lot of expenses that are deductible with 5 W2 employees, malpractice and health covered by group and eventual 401k safeharbor plan. Is this something that can be done DIY fairly easily? Looking for a new CPA and shopping around. Want to make sure fees are in line with the norm. Would think it isn’t too taxing as QB should provide all the data needed. Just want to get a baseline for comparison.

  • #2
    For one thing, it really (really!) depends on the quality of your QBO files. If they are not in order (p/r is so easy to screw up in QB), then expect to pay a lot more than if you hand over clean files to your CPA. That is, unless the CPA just takes whatever you hand them and slaps the numbers on the return - which happens more often than we like to think. Tax season is a pressure cooker for most all of us and some professionals really don’t care as long as the return is filed and they get paid. You should expect, at the least, a set of AJE’s for your books after the return is completed.

    I realize this doesn’t answer your question, but I hope it gives you a bit of insight as to one reason that fees may vary. And, of course, if you are looking strictly for a “tax prep” firm v. a yr-round tax planning firm, fees also will vary. Now that I have bumped the thread, I hope you will receive some specific responses.
    My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
    Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients


    • #3
      Is my assumption that 2019 is being filed by your old CPA correct?
      I was left with the impression that your “new structure “ you already had reviewed with a “new CPA”. My bad.
      For some, they will document all you have done and you will have some startup costs before you even get to the “books”. Then they will review the books and then they will give you “adjusting journal entries and “reclassification journal entries”. New client and work will cost you an amount that will not be recurring.
      Then they begin preparing various returns. Do you have a state franchise tax filing? A detailed list of the returns being requested and quotes from CPA’s is the only way to get an estimate. Ongoing business relationships are of value to both you and the CPA. If you come in loaded for bear, documentation and everything nice and tidy, your bill will be much lower. I think this is your goal. You can find CPA that will give you a package and blow through it reasonably and do all the returns.
      I suggest meeting with three, spelling out your known needs and asking if any other items are needed. For example, some may want copies of all your 941’s and 940. Have a discussion and then request a quote. You are interested in being a client and services that are offered. Go from there.