Am I spending way too much on my CPA?

Question

Hi y'all, So I'm just getting into real estate, I have an LLC set up and will be closing on my first deal in a couple of weeks, a $68,000 single home. I was looking around for a cpa and wound up with 1800accountant. Anyway they talked me into buying their services costing $2,700 for the next year. And now I'm wondering if I spent way too much, considering how small my business is and only one property. Any thoughts, advice or opinions?

Basit Siddiqi · Answer

A claim like that is crazy...I personally think the fees that you signed up for is on the high side.You can view a couple a couple of posts on this message board about people signing up with 1800 accountant and then wanting to move on to another accountant.The thing with firms like 1800 accountant is that you will likely be with one accountant one year and then another accountant the next year because they have a high turnover.The issue with this is that you may have to re-explain your situation on an annual basis.Best of luck.

Brendon Wise · Answer

Thanks for the reply! I would say I have a simple tax situation, personal returns for me and my wife and now the sole member LLC. So while I don't believe there's any complex items, I think they do tax planning more or less. According to them, they are the only company that knows how to properly do business taxes. :)

Ben Trageser · Answer

@Brendon Wise I think it really depends on what services you need/want. If you have tax planning and complex items within the return, I could see it getting there but it seems a little bit high. If you’d like, happy to message further.