Accountants

[mminnig]

This was our first year in business with a few jobs and lots of expenses between equipment and marketing. Looking ahead to tax time and the bookings we are getting for 2008, I recognize the need for an accountant.

My question is two fold....

1. What does your accountant do for you?
(do you just meet with them once a year to do your taxes, are they an integral part of your business?)

2. What should I look for in an accountant / What questions should I be asking?

I'm sure the answers will depend upon the size of everyone's business, but I'm just trying to gain insight.
Thank you,
Mike

[sapearl]

I meet with my CPA once a year face to face, usually a couple of months before taxes are due. I am a part time wedding photographer and he uses Schedule-C for my filing.

Basically I just have an excel spreadsheet prepared with a breakdown of all the costs by category, as well as income, along with receipts. Normally there were be questions during the year, but these are typically handled over the phone. Once he's completed our tax forms he drops them off at the house.

[mminnig]

I was going to tackle it myself as I have filed my own Schedule C for another business for years. My only fear is getting all of my equipment purchases correct. I'm just not certain on things like depreciation. In the end, I think I will sleep better at night knowing it was done right.

[sapearl]

I agree with you about "sleeping right at night." I have absolutely no interest in the nuances and details of filing. I'd rather be taking pictures :lol:. My tax guy is an expert at keeping up with all the changes in the law every year, local, federal, city, county.... that is not my area of expertise.

For the modest amount of money I've paid him over the years, he has saved me for more than that, plus the diminished aggravation and peace of mind. Just remember, if YOU try to do EVERYTHING perfectly something usually suffers. It's just human nature ;).

I was going to tackle it myself as I have filed my own Schedule C for another business for years. My only fear is getting all of my equipment purchases correct. I'm just not certain on things like depreciation. In the end, I think I will sleep better at night knowing it was done right.