Fee Structure
While a lot of accounting firms don’t share their base fees, Potomac Accounting tries to be as transparent as possible. Most tax preparation fees and business services are described below. That’s not to say client disorganization couldn’t lead to higher tax preparation fees and business service fees. We also decrease fees when less time is spent on a client i.e. if have sold out of your rentals and your tax filing takes less time.
Individual Tax Preparation
Our starting fee is $750 for standalone 1040 individual tax returns (most are $750 to $1,000). Children range from $250 to $400. Ready to file? Book a consult here.
Business Tax Preparation
Our primary focus is business consultation, deduction optimization and tax return preparation. Our starting fee is $1,500 for partnership and corporate tax returns depending on the quality of your accounting records (most are $1,500 to $2,500).
Online Accountant
Small business bookkeeping is typically $500 to $2,500 per month depending on cadence. We know that’s a wide range but we can get you a firm quote once we hear the background on your business. We can also add turn-key payroll services too with a third party (but we do all the mangement). Fractional Controller services as well.
Consultation
Our fee is $350 for 60 minutes. If we engage in the future we will credit the fee towards future Business Advisory or Bundled Tax Services. If we don’t have the competency we will tell you that as well, and refund the consult fee. To schedule a consult, please do so here.
Tax Planning
Tax planning is an ongoing and should be performed throughout the year. Planning throughout the year allows for better decisions and better tax savings vs approaching it at year end.
Business Formation
We can create an LLC, partnership or corporation typically for $650 plus the state filing fees. Includes Articles, EIN, Operating Agreement, S Corp election (if necessary) and consultation to help you launch your business.
Business Advisory Service Plans
Aside from taxes and bookkeeping, our most popular business plan options continue to be our business plans with transparent pricing. While the basic and professional cover most needs, feel free to message us for a custom or a la carte package. We reserve the right to set a more appropriate fee based on our initial discussions as well.
| A la Carte* | Basic | Professional | ||
| 2024 Tax Planning and Preparation | ||||
| Streamlined Tax Planning, Tax Projection Worksheets | $375 to $500 | ✓ | ✓ | |
| Annual Tax Reduction, Shifting and Deferral Analysis | $375 to $500 | ✓ | ✓ | |
| Small Business Tax Deductions Optimization | Included | ✓ | ✓ | |
| Section 199A QBI Deduction Tax and Salary Optimization | $300 | ✓ | ✓ | |
| Estimated Income Taxes (via increased payroll withholdings) | Included | ✓ | ✓ | |
| Business Entity Tax Return (Form 1065, 1120, 1120S) | Starting at $1,500 | ✓ | ✓ | |
| Individual Tax Return (Form 1040, joint filing), One Owner | Starting at $750 | ✓ | ✓ | |
| Expat / Foreign Income Calcs (Form 2555, FBAR, Form 8938) | $400 to $750 | Add-On | Add-On | |
| Tax Resolution, Audit Defense | Varies | As Req’d | As Req’d | |
| Financial Planning, Calculations, Discussions | $900 to $2,500 | Add-On | Add-On | |
| Situational Tax Law Research (up to 3 hours annually) | $750 to $1,050 | |||
| Payroll and Accounting Services | ||||
| Reasonable Shareholder Salary Calculation | $500 | ✓ | ✓ | |
| Monthly Shareholder Payroll Processing (includes spouse, kids extra) | $1,200 | ✓ | ✓ | |
| Employee Payroll Processing (bi-weekly, direct deposit) | Varies | Add-On | Add-On | |
| Annual Payroll Processing (W-2s, other filings, up to ten 1099s) | Included | ✓ | ✓ | |
| Accounting Services (bookkeeping + analysis… see below) | Varies | Add-On | Add-On | |
| Quarterly QuickBooks Consulting (QuickStart Launch) | $250, ($750) | Add-On | ✓ | |
| Consulting | ||||
| Business Consultation, Periodic Business Reviews | $250 to $1,000 | Annually | Routine | |
| Complimentary Quick Chats | $250 to $500 | Routine | Routine | |
| CPA Concierge Services | Varies | Add-On | Add-On | |
| Interfacing with Lenders, Attorneys, Financial Planners | $750 | Routine | ||
| Financial Analysis | ||||
| Fractional Controller (monitoring 3rd party bookkeeping) | Varies | Add-On | Add-On | |
| Quarterly Financial Statements Analysis, Comparisons | $1,200 | ✓ | ||
| Annual Cash Flow Management and Analysis | $1,500 to $2,500 | ✓ | ||
| Annual Budgeting, Forecasting, Goal Setting | $750 to $1,000 | ✓ | ||
| Annual First Research Reports, Industry-Focused Consulting | $350 to $600 | ✓ | ||
| Annual National and Metro Economic Reports | $150 | ✓ | ||
| KPI Analysis, Benchmarking, Hot Sheets, Trend Analysis | $500 to $1,500 | ✓ | ||
| Strategy and Maintenance | ||||
| C-Level Financial Advice, Strategic Planning (Fractional CFO) | Varies | |||
| Succession Planning, Ownership Changes Consultation | $750 to $1,000 | |||
| Annual Business Valuation | $2,500 to $3,000 | |||
| Annual Corporate Governance, Resolutions, Meetings | $150 + filing fee | ✓ | ||
| Annual Fee | $5,856 | $9,264 | ||
| Monthly Fee | $488 | $772 | ||
| (prorated based on date onboarded) | ||||
Bundled Tax Services
We also have Tax Patrol! This is a wonderful tax service for those who don’t need all the business advisory bells and whistles above, but from time to time want some love from an experienced tax consultant and business advisor. Have a quick tax question? Need to know the depreciation rules as you buy that new car? Wondering what your April tax bill is going to be in August? Tax Patrol is like ski patrol… you might not use it, but you sleep better knowing you have it.
| A la Carte* | Basic | Standard | Professional | |
| Individual Tax Return Prep (Form 1040, joint filing) | Starting at $750 | ✓ | ✓ | |
| Business Entity Tax Return Prep (Form 1065, 1120, 1120S) | Starting at $1,500 | ✓ | ✓ | |
| Streamlined Tax Planning, Tax Projection Worksheets | $350 to $500 | ✓ | ✓ | ✓ |
| Estimated Tax Payments Calcs | Included | ✓ | ✓ | ✓ |
| Tax Resolution, Audit Defense | NA | Add-On | Add-On | Add-On |
| Complimentary Quick Chats | $250 to $500 | Routine | Routine | Routine |
| Annual Fee | $1,500 | $2,100 | $3,180 | |
| Monthly Fee | $125 | $175 | $265 | |
| (prorated based on date onboarded) | ||||
Additional Business Services
The following are additional business services to get your venture launched and on the way. Some of these are teased out separately as one and done fees like formation and onboarding stuff.
| Accounting, Payroll* | |
| Monthly Accounting (bookkeeping + analysis) | starting at $500 / month |
| Bi-Monthly Accounting (bookkeeping + analysis every 2 months) | starting at $250 / month |
| Quarterly Accounting (bookkeeping + analysis every 4 months) | starting at $150 / month |
| Sales Tax, Personal Property Tax | typically $75 / month, $150 / quarter |
| Employee Payroll (direct deposit, bi-weekly) | 1 employee, $100 / month 2-5 employees, $200 / month |
| Notice: Accounting fees are based on 2 bank account with less than 200 monthly transactions but does not include the QBO fee from Intuit. A custom quote is available if you have a lot going on such as third-party integrations (POS, time billing system), accrual accounting method, extensive benefits packages and / or industry specific issues (e.g, job costing in construction). Employee payroll can be added only if already using our Business Advisory Service plans above (i.e. basic). | |
| Business Formation Services | |
| Articles of Organization or Incorporation, or Dissolution | $650 + state filing fee |
| Initial Report (if required) | $125 + state filing fee |
| Annual Report | $350 + state filing fee |
| Employer Identification Number (EIN) | Included |
| Single Member Operating Agreement (SMLLC) | Included |
| MS Word Templated Bylaws Agreement (Corporations) | Included |
| S Corp Election, Timely Election (made with formation) | Included |
| Accountable Plan | Included |
| Set Up Services | |
| Payroll Accounts Setup, Transfer, Closing | $550 to $650 depending on state |
| Employee Data Transfer | $25 per EE, >5 |
| Accounting Setup or Transfer (Fractional Controller) | Varies |
| QuickStart QuickBooks Setup and Support (90 days) | $750 |
| S Corp Election, Timely Election (within 75 days) | $450 |
| Late S Corp Election | $1,200 |
| Examine Prior Tax Returns | Included |
| Business Maintenance | |
| Entity Relocation Package (payroll closure and opening, entity move) | $850 + state filing fees |
| Address Changes w/o Payroll (IRS, State Dept of Revenue, Secretary of State) | $275 + state filing fees |
| Address Changes with Payroll (above + state and local payroll agencies) | $350 to $475 + state filing fees |
| Note: Basic address changes require IRS, State Department of Revenue and Secretary of State notifications. Address changes that include payroll add another level of complexity since departments of revenue are not the same as departments of labor, and there may be local or municipal agencies as well. | |
Advisory Services Fine Print
A la Carte Fees*
A la Carte fee ranges are estimates. 90% of our clients fit into these fee ranges, but there are exceptions. Have 20 rentals? It’s going to be much more. We make the assumption you are filing for one state.; if your business is in a few states then additional fees will be discussed during onboarding. Typically each state or tax jurisdiction is around $300 to $375 for tax preparation since it affects both your business and individual tax returns.
Additional Fees
We also have a short list of additional fees that might be incurred depending on your tax or accounting situation:
| Significant changes or additions after a preliminary tax return is prepared | $350 / hr |
| Tax resolution | $500 retainer, $250 / hr |
| Tax representation and audit assistance; typical case is resolved in two 2-hour sessions | $750 retainer, $250 / hr |
| Lender or “comfort” letters | We do not provide. |
| Business Valuations | $5,000 – $10,000 retainer, $350 / hr |
| Divorce Analysis, Litigation Support | $250 / hr, $450 / hr for court |
Next Steps
Here is a brief summary of the next steps should you want to engage Potomac Accounting:
1. Schedule an appointment to discuss your needs and ensure that we have the proper resources to help you.
2. We draft a proposal outlining the scope of services and our fixed annual fee.
3. If needed, we schedule another appointment to review the proposal.
4. Once the proposal is signed, we’ll get you onboarded. We have an extensive checklist and internal task list to properly onboard you or your business.
5. After onboarding (usually 3-5 weeks), things settle down – tax preparation in the spring, tax planning in the summer/fall, and routine consultation throughout the year.
Ready to Connect with Us?
Complete the form below to schedule a time. We prefer async communication so forms, email or scheduling a call is great and we’ll get back to you in due course.