should i get a new accountant??

[eguhlin]

its almost the deadline for filing taxes, we have a c type corporation (i think the kind for a small business personal assets are separate from corporation) we have one store that opened in may last year..

well my accountant told me to get all the recepts, add them up put the totals under different categories ie merchandise,equipment, construction.. and she will file it for us..
also she said that we wont get any kind of tax return benifit( besides the fact that we are corporation and its completely separate from our personal income) although we have upwards of 50,000 in expenses for opening the store but that we will have a negative this year but next year hopefully if we grow then the start up costs can be used to offset the profits of next year (when we start to make over 300 thousand in revenue, in her words..)which is taxed..
I thought that the account adds up the receipts (the whole shoe box of recept thing..) i mean i can make up any number and give to her
is this sound accounting or do i need to search for a new accountant??

[Arlene M Passalacqua]

Sounds like you need a bookkeeper. Some CPAs do offer bookkeeping services, it's a natural addon service for them to offer, but not all do. If they're not fully meeting your needs, by all means shop around.

[Dalen]

It depends on your arrangement with her. Most accountants will take your receipts/records and match them up with your financials, then make adjustments as needed. Usually with small businesses like yours, they will take your receipts and add them up, file your taxes and return the corresponding year end financials to you.

Peter is correct in that you can hire an accountant to do your bookkeeping and your taxes. I offer that service to all of my clients and all but one takes advantage of it. Some accountant's are too swamped with larger clients to provide you with the service that you deserve. If that is your feeling, you should definitely shop around.

Don't ever stay in a business relationship that you're not comfortable with, it's not worth the stress. As a small business owner you have enough worries already.

It's true that you can give her any number, but she'll match it up with your receipts and probably refuse to do your return if she feels that you're being unethical.

Isn't owning your own business fun????

[eguhlin]

thanks guys for the replies, I will probably shop around but for now I think I would go ahead and get my taxes done with her. I was just worried about missing out on any tax breaks of some kind or proper filing in general. Yes joshua its a lot of fun but its really going to be grand when we have to start paying about 33% of our income in taxes(work so hard just to hand it over to uncle sam)
ok if the average grocery profit is 45% is roughly 30% of that going to the irs fat belly? or is it the net after everything including employees are paid

[Dalen]

I believe the 45% you speak of is net of payroll and all costs/expenses. Yes, your tax is based on your profits but it's 30% of that which would be 13.5% of your profit, roughly. These are all estimates though, your accountant can give you a better idea, and advice, once she prepares your return.