What can I expect to pay for tax preparation?
Ah, tax season! It can be a breeze or an absolute overwhelming time! But what actual costs should you be looking at for tax preparation for your private practice? I get you (needing to plan and all) but I’m going to be completely honest, tax preparation costs for your private practice, and businesses in general, isn’t a one size fits all.
And I’ll tell you why.
It depends on a variety of things like:
- The filing status of your private practice (are you an LLC, SCorp, CCorp, etc.?)
- The types and amount of itemized deductions you may have for you personally and for your private practice;
- How big of a mess your bookkeeping is
The last one is a biggie and has a huge impact on the cost.
Without bookkeeping records for your private practice, or messy bookkeeping records, your tax professional isn’t going to have your total income, total expenses categorized into their tax deductible accounts, or net income… to name a few. Time is money… and if your tax professional has to spend their time, during their busiest time of year, cleaning up your mess, or conglomerating your income and expense totals, you’re going to pay their rate to clean that mess up in addition to their fee to prep your tax returns!
But, okay okay, I know you want a ballpark and a realistic starting point for tax preparation costs for your private practice. You can expect to pay at least $350 for a good tax professional, and generally the fee goes up from there, depending on your needs for your private practice taxes and your personal taxes!
If you need help with tax preparation for your private practice, or ongoing bookkeeping to keep tax preparation costs down when the time comes, get in touch!