FAQ

Hi, I’m Gary Bode, a CPA accountant with a virtual office to serve you regardless of your, or your company’s, location. Here are the most common FAQs, in no particular order.

Why can’t a CPA tell me exactly what my tax preparation will cost?

Clients naturally want a concrete figure for fees. But, for a new Client, that’s difficult without having complete information about your company’s situation. For example hundreds of potential issues exist on Form 1065 or 1120S, even if the company keeps a clean set of books. For an existing client, we can guarantee a price based on last year’s work and known changes for the current tax year.

Ultimately, we base our fees on time or a price per Form or Schedule.

Some CPA’s will give a fixed price, but it’s usually based on a worst case scenario. For example I lost a back tax S Corporation client because I wanted to check his records before committing to a fee. While I was looking over his documentation, he engaged with a CPA for complete services of $5000, up front. Our fee would have been $3700-$3,900, paid in installments.

I don’t live in NC. How can I use your services?

Obtaining long distance and international clients was a pleasant result of our website. Over time we’ve put together a virtual office so we can serve you, wherever you live. Another surprise is that local clients find the virtual office more convenient. The CPA license is now a national license.

How do you know all the State rules?

Well, we don’t. No CPA accountant does. But we know the questions and how to find answers. Sometimes it’s just a matter of calling your State’s Department of Revenue, or researching their website. On large cases we might consider partnering with a CPA firm well versed with issues in your State.

What is a retainer and how does that work?

In some cases we ask for money up front; a retainer. Then we bill against the retainer as work progresses. Why? With back tax cases, for example, the IRS and State may place a lien on the company. So we figure you’d pay us if you could, but you might be in a financial position where you can’t. So we collect in advance. We refund any remaining retainer of course.

What does your free CPA phone consultation cover?

Generally we’ll talk with you about your concerns up to 15 minutes or so. I try to be as helpful as possible. Often that clears whatever hurdle the client has and they move forward without us. Sometimes we ask for a specific document by fax, and talk a second time. We don’t provide specifics during the free consultation, because there is seldom enough information to do so. We also don’t try to sell you services. Why? We don’t want potential clients to feel pressured. But of course, all new Clients engage us after the free consult.

Why do you require an Engagement Letter?

We want you to understand what we’re doing, how we’re doing it and how you’ll be charged. I think of it like a Consent Form at the hospital, except I encourage you to read it!

Why doesn’t your fee cover subsequent IRS or State notices?

Well, our fees cover services performed now. An IRS notice doesn’t mean there’s a mistake on your return. The IRS randomly audits 1% of returns to establish their internal benchmarks. In back tax cases for example, the IRS and State may take months to process them all, often resulting in annoying, overlapping and disconcerting Notices. One recent example involved a professional C Corporation. The State inadvertently misposted their Franchise Tax payment. I mean it was buried deep in their system. This wasn’t the client’s fault. It wasn’t our fault. But it took time to fix.

Why can’t you do my return while I wait?

This is a convenience feature of the national tax chains. But they only handle low-level personal taxes. We generally handle more complex returns that require more documentation or tax strategies. We occasionally prioritize a case when the timeline (e.g. the IRS or State) demands it.

Does your Master’s Degree help me?

Many CPA accountants don’t have a Master’s Degree. In some cases, yes the advanced credentials make a difference. But I try to distinguish the firm through customer service.

Does your experience help me?

Well the website surprisingly carved out a few niches for us. Like expatriate taxation, rental property and Form 982 preparation. It seems like we handle more of those cases than the average brick and mortar CPA. I’ve taught or tutored folks for decades, so I’m perhaps better able to explain tax issues to you in English, not Financialese. Plus I’ve worked as a CFO and Controller which helps me understand your company’s logistics and environment.

What are common complaints about the previous CPA accountant?

Well it’s generally not because of any errors!

• They say a CPA solves a problem you didn’t know you had in a way you can’t understand. I wouldn’t appreciate that if I was a client, so I work hard to allow clients to understand everything they want to understand.
• Responsiveness. The CPA was too busy to return calls or e-mails. I saw the same problems when I worked for brick and mortar CPA practices. So I encourage communication. We try to provide updates. There’s no sense in stressing a client when a few minutes can ease it.
• The CPA didn’t want to listen to their story. I’m not saying we don’t have time pressures in our firm, but I think the client often helps with information if allowed to do so.
• The CPA accountant didn’t shield Client from IRS or State stress. I understand the stress involved with some situations, like a tax audit, and try to shield clients as best I can.
• CPAs are too expensive. Our virtual office keeps our prices lower than the national average. And I’m a bit different about what work we do. For example there’s no sense for you to pay us $300 to fight a $150 penalty. We have plenty of work and I’m more comfortable with a long-term relationship.