If you’re a business owner who has never used the professional services of a tax preparer, you might well wonder how much they charge, how long the work typically takes them, and ultimately, whether they are worth the investment. While the short answer is: yes, they are definitely worth the investment, it can be helpful to know a little more about what you can expect from them.
More than simply completing a few forms and submitting them to the IRS, a tax preparation service in Miami offers a strategic process driven by data, and is one which can vary hugely in both time and cost, depending on the source of income, documentation, and deductions.
Fast returns and a fee that’s fixed are impossible to guarantee, and many factors can impact the cost of a tax preparer’s service, as well as the length of time it takes them to complete your return.
Let’s look at the process in a little more detail:
Factors influencing how much an accountant charges for tax filing
Ranging from between $150 to $1,500, a tax preparer’s fees depend heavily on the factors outlined below:
- The complexity of the form – if they’re filing basic W-2 returns on your behalf, and aren’t dealing with any itemized deductions, they may charge between $150 and $300. However, fees can be expected to increase once they start dealing with returns that involve 1099-NEC, 1099-MISC or Schedule C for those who are self-employed, and may cost upwards of $350. Multiple streams of income and itemized returns (schedule A), will also see a tax preparer’s fees potentially rise to more than $700.
- The type of entity – those filing individually can expect to pay the least in preparation fees, while LLCs and sole proprietor’s are typically classed as mid-range. Partnerships and S Corporations require a lot of specific documentation and reconciliation, meaning returns can average upwards of $800.
- Geographic location – fees for tax preparation tend to be higher in cities, while rural or lower-cost regions are often lower.
- Specialist tax preparers – you can expect to pay more for the services of a Certified Public Accountant (CPA), Enrolled Agent (EA), or Accredited Tax Advisor (ATA), but this price hike may be worth it for the level of expertise they offer.
What impacts how long it takes for an accountant to file your return?
Below are some of the factors typically impacting the length of time it takes for a qualified professional to prepare your taxes and file them:
- Initial consultation and collection of documents – taking anything from a mere half an hour to 2 hours, this process involves a detailed discussion between you and your tax preparer, during which you’ll be asked to provide certain tax documents, such as W-2s and 1099-NECs or 1099-MISC, and receipts for business expenses, charitable donations or healthcare costs. The more complex your taxes, the longer this will take.
- Preparation and review – if yours is a straightforward W-2 return, this part of the process may only take between 2 and 3 hours. However, for a return with multiple dependents, itemized deductions and so on, it could take up to 10 hours. Additionally, if there are errors uncovered or missing bookkeeping, you can expect the process to take even longer.
- Client review and finalization – your return will be sent to you once complete for a review, at which time your signature may be required for certain forms. Depending on whether you have any revisions you would like made, or questions you would like answered by tax planning in Fort Lauderdale, this part of the process could go on for a few more hours or days.
- Submission to IRS and confirmation – once you’ve approved your return, it will likely be submitted the same day, with digital acknowledgement usually received within a day or two from the IRS.
As you might expect, with no two tax returns being the same, it’s virtually impossible to say how long it will take to have your return prepared professionally, and what it will cost. But with this approximate guide, you can get a good idea of the process, and a better understanding of what factors might impact its cost and duration.