Estimated Time:

[Roberts]

I've got an 1120S now. My first ever and I worked with the accounting all year so I know it's in good shape. Have copies of all previous years returns. It's a manufacturers rep business so there is no inventory or anything like that, pretty simple really.

If this were your new client, how long would it take you to do the 1120S and K-1 for the client?

I'm betting it's going to take me a heck of a lot longer.

[taxea]

The IRS instructions include time it takes to prepare each form. taxea

[BHoffman]

Depending on a lot of things, it's almost a no brainer if you have good financial statements. One of the hard things is if the prior year ending Retained Earnings on pg 4 is not the beginning Retained Earnings in the books for the current year That has to be reconciled somehow.

[Roberts]

The EA exam doesn't teach you this sort of stuff. :P

I've got a few things that need to be fixed. The Retained Earnings figures are totally screwed up and I'll research that. I had printed off some information on the subject over the summer because I knew this was coming. Plus the depreciation schedules are really goofy. I need to do some work there also.

All in all, coming along better than feared.

[ChEAr$]

Sounds like a simple return

If you have a good p & l that is. And whether you really need a balance sheet and
schedules L, m1 and m2, depends on receipts, right?

Oh, for federal and state and Alabama domestic franchise tax return, about 45 minutes.
Oh, and addressing envelopes.... total of an hour.

[BHoffman]

From hard experience I've learned to keep that balance sheet in good order whether it needs to be reported or not. That balance sheet is important in determining whether your P&L is correct and complete. The RE number should tie from year to year, or you'll have a big ripping mess when/if the time comes that you need to report Sch L.

RE will look screwed up if the books were kept on accrual and he reports on the cash basis, but it really isn't. Sch L should be completed based on the books and then reconciled in the M1. My software, Drake, provides a report that shows if I'm out of balance. Maybe your software does too.

BTW: I don't charge by the hour for business returns. I start at $500 for a simple return, discounted if the books are in great shape, if the client is really small, etc. Goes up if the books are a mess, if the return has like-kind exchange or DPAD or other stuff like that.

[taxea]

Unless you do the accounting and the taxes it would be the responsibility of whomever does the accounting to provide you with the correct figures each year. This would include tax return figures and "book" figures if they do not agree. taxea

[BHoffman]

Boy, I'd love it if I received a book to tax reconciliation from a bookkeeper every year But sadly , that isn't ever going to happen. Unless I do the writeup, I usually have a few questions for the bookkeeper every year. Many times, entries will be made to the prior year after the books are closed so I have to reverse them.

[taxea]

This is why I send my clients a P/L and Balance Sheet worksheet that includes all the information I need. I don't start the return until all of my worksheets have been completed and returned. taxea

[Davc]

Be aware that Quick Books "cash basis" P & L may not actually be true cash basis.

http://www.sleeter.com/articles/1034888511