Typical contractor and accountant relationship.?

Question

I'm in process of opening a contractor business, I will incorporate and I need to know what are key questions that I should ask an accountant?, can I use any software to track sales records?, what's the best way to submit any records to an accountant?, what are typical accounting rates?. Too many questions I know but any answers will help, thank you.

Answer 1

All he or she is going to care about is the completeness of your records and his or her ability to turn those records into financial statements and tax returns.  They will need at least your cash disbursement journal / check register, your sales journal, your cash receipts journal, and if pertinent, your purchasing journal and general journal.  They will want a record of your various assets; e.g., cars, trucks, equipment, etc. including dates purchased, how much you paid for them etc.  How you turn them over to the accountant will mainly determine how much they are going to charge.  Software based records will generally be fine, but they may prefer you to switch to something they feel is better (probably something they'll sell you.)  

The fee structure could be all over the map depending on the complexity of your information and its volume and how it's maintained.  There are various levels of service in the industry ranging from bookkeepers to accountants to CPA's (although some states also have Public Accountants as well.)  Some might charge $20 to $35 for a pretty limited ability, medium levels of service will probably go for $50 to $75, and some wil run $200 and up; all are hourly rates of course.  

I think what I would want to know is who is going to do the work, what work is going to be performed, what are the qualifications of the firm and the person working on the account, how much it's going to cost, and who owns the records generated.