re: Accountants fees skyrocketing

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You are exaggerating your costs and underrepresenting your profit margin.

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We are all making more. Not trying to hide that.

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Recent accounting graduates are a bunch of babies.

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well, they are gen Z

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I know my taxes are fairly complex but I pay about 15k a year to the company that prepares my taxes

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Hopefully your return is very complex and worthwhile. Otherwise, it is time for a simpler tax system, or the accountants are going to continue to have us by the balls like the military industrial complex every year.

When my wife and I got married and had our first baby, she lost her job and I wasn't making that much so we qualified for EITC. I asked our CPA about it and she legit said "What is that?" From then on, I did my own taxes.

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Sad, but this type of thing is common. Experts are many times not experts. Know enough to ask good questions and do your own thinking. I did our family's taxes for over 20 years until my wife started a business and then their accountant started handling all of it. When I see the bill I just shake my head.

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I mean to be fair we have about 5 client on EITC every year and they are usually adult kids of bigger clients.

I'm sure the local Block office handles 50 EITCs a day this time of year.

Trying having an informed conversation with them about entity basis though......

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Firms are feeling tremendous labor pressure because of a shortage of warm bodies, and honestly, as tax law gets more complex, we need more than warm bodies.

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Income tax is theft, and when i was learning tax we did everything by hand. So anyone that went through that probably said frick working in tax.

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Sad, but this type of thing is common. Experts are many times not experts.

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Experts in tax are not going to be able to tell you much about EITC and it doesn’t make them any less of an expert.

There are completely different worlds of tax. Almost no one can jump from one to the other without missing a beat.

I don’t know the business that well, but there’s no reason why CPA’s should be handling the vast majority of tax work. It’s mostly book keepers and assistants that don’t have a college degree or at least aren’t CPA’s. The Cpa is just there for oversight, complications, and review. If a company is burning their CPA’s out on data entry tax work, then imo that’s poor management of resources. Hire someone from HR block for double the pay and save your Accountants for the heavy lifting.

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I don’t know the business that well, but there’s no reason why CPA’s should be handling the vast majority of tax work. It’s mostly book keepers and assistants that don’t have a college degree or at least aren’t CPA’s. The Cpa is just there for oversight, complications, and review. If a company is burning their CPA’s out on data entry tax work, then imo that’s poor management of resources. Hire someone from HR block for double the pay and save your Accountants for the heavy lifting.

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Again, there are different worlds of tax.

The common person just thinks of tax as their 1040 and thinks how complicated can that be? And you’re right. It’s not complicated at all. There’s software that reads your 1099s, mortgage interest statements, etc and inputs it into the tax software for us. Then you have a low level employee input the rest that it can’t read.

A 1040 is the very tip of the iceberg in the world of tax.

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for my wife's S-Corp with 9 employees and about 1 mil revenue, the CPA firm charged us (i think) $700 last year.

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I’m imagining you’ll see entity prices go up exponentially in the industry.

TurboTax launched this this year and others in the industry are adjusting prices accordingly. A CPA firm should never be less or equal to TurboTax full service.

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