Having an issue with accountant, or am I overthinking?

[James Landsford]

I switched accountants this year from the accountant I had used for the last 7 years. I am currently operating with 80 rental properties that are divided among 2 single members LLCs as well as 6 properties divided amongst 3 LLCs that I split with enough individual. 

I just met with my accountant and got my bill for his services and was a bit surprised with the total expense. The total bill was $5,850 which ended up being more than I paid in taxes. It did include personal state and federal as well. The previous accountant charged me around $3,500 for the same portfolio so I was a bit taken aback.

I would like some feedback from others with larger portfolios regarding their expectation in today’s world with CPAs and how to tell if they are getting good value. 

Thanks!

[Bill B.]

I'm pretty accustomed to paying $1,200 for 12 properties, zero LLC's and zero state income tax…

So you’re getting state income tax, 5 LLCs and 6.5 X more rentals for 5 X the price. Doesn’t seem out of line. You could always ask if the LLCs are a major factor in the cost. (Unknown answer to me, but something the others should be splitting with you? Or maybe a reason to sell your portion or buy out the partner)

Did the other accountant suck or retire? If not go back to them if $2k more is too much. It’s always a weird situation. You’ll rarely get a price ahead of time. But what if the bill had been $10k? Or $20k? When did they have to stop working and get your ok to spend more?

I consider it the same way I do the umbrella insurance policy. A “success tax”.