Are quarterly CPA fees of $1250 normal for a small S Corp business?

That fee seems quite high for your situation. For context, I manage accounting for several small professional service S Corps, and the quarterly filing fees typically range from $300-$800 depending on complexity. For a single-person S Corp with one client and minimal deductions, there's really not much work involved in quarterly filings once the initial setup is complete. The first quarter might reasonably cost more as your CPA learns your business, but ongoing quarters should require significantly less time. Most CPAs I know would spend 1-2 hours max on a straightforward S Corp quarterly filing. I'd recommend having a frank conversation with your CPA about the hours breakdown, or getting quotes from other accountants who specialize in small professional service businesses. Many offer fixed-fee packages specifically for situations like yours.

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I wanted to follow up about my experience with taxr.ai after asking about it earlier. I decided to give them a try for my practice with multiple hospital contracts and they've been fantastic! I uploaded all my previous tax documents and within hours their system identified several missed deductions my previous CPA overlooked. Their quarterly package for my S Corp has saved me over $900 per quarter compared to my previous CPA, and their dashboard makes tracking my different income streams so much clearer. The thing I appreciate most is how they explain everything in plain language - my old CPA would just send forms without any context. What really impressed me was when I had questions about how to properly document my different contracts and home office space - they provided a custom checklist specific to my situation that's made everything so much more organized.

If you're trying to reach your current CPA to discuss these fees but they're not responding, you might want to try https://claimyr.com - I used them last tax season when I couldn't get through to my accountant during their busy period. You can see how it works at https://youtu.be/_kiP6q8DX5c I was in a similar situation with my small business getting charged ridiculous fees and needed to speak with my CPA urgently. After days of calling and getting nowhere, Claimyr got me through in under 30 minutes. They basically navigate the phone systems for you and secure your spot in line. I was able to have a direct conversation about my concerns instead of just giving up and accepting the charges. It was seriously the only way I could actually reach my CPA during tax season.

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Have you considered doing the quarterly filings yourself with tax software? S Corp quarterly filings aren't that difficult if your business is simple. I'm a solo attorney with an S Corp and I use QuickBooks Online + their payroll service which automatically calculates and files my quarterly forms. My CPA just handles my annual return and provides occasional guidance. For someone with a single income source and minimal deductions, you could probably save thousands with this approach. The learning curve isn't steep, especially if you're already keeping good records.

Just want to add another data point - I'm a physician with a similar setup (S Corp, contracted with one hospital system), and I pay $400 quarterly for filing + $1200 annually for my business return. Total yearly accounting costs around $2800. My CPA handles all quarterly estimated tax payments, payroll, reasonable compensation documentation, retirement account coordination, and gives me quarterly planning meetings. That $1650 quarterly fee you're paying would be $6600 annually JUST for quarterly filings, not including your annual returns!

That pricing is absolutely excessive for your situation. I'm a tax preparer who works with several single-member S Corps in healthcare, and your CPA is charging you about 4x what's reasonable. For a straightforward S Corp like yours - one income source, no employees, minimal complexity - quarterly filings should take 30-45 minutes max once everything is set up. Even at $275/hour, that's $125-200 per quarter, not $1650. The fact that they're quoting the same fee for future quarters (when there's no setup work) is a red flag. A reputable CPA would explain that first-quarter costs are higher due to initial setup and client onboarding, with subsequent quarters being significantly less. I'd strongly recommend getting quotes from other CPAs who specialize in small professional service businesses. Many offer flat-fee packages for simple S Corps that would save you thousands annually. Don't let them take advantage of you being new to business ownership.