Is 1-800Accountant worth it for a new small business owner?

Small business tax advisor here! I'd be cautious about spending nearly $3700 when you're just starting out. That's a significant expense for a new business. Here's what you should consider: How complex is your business? If you're a service-based SMLLC with minimal inventory and just a few clients, your bookkeeping might be simpler than you think. Many new business owners can manage with QuickBooks Self-Employed ($15/month) or FreshBooks ($15-50/month) to track income and expenses. For tax filing, you could find a local CPA who specializes in small businesses for around $500-800 for your annual tax preparation. This gives you personalized service without the hefty commitment. Many CPAs also offer hourly consultations ($150-250/hour) if you have specific questions throughout the year. The value proposition of services like 1-800Accountant is convenience, but you're paying a premium for it. Consider your actual needs before committing to such a large expense when your business is still finding its footing.

I was in the exact same boat last year! After struggling with my books for months, I found this AI-powered accounting assistant at https://taxr.ai that completely changed my small business accounting experience. What I love is that it's specifically designed for people who don't have accounting backgrounds. I can upload all my receipts and bank statements, and it organizes everything automatically. The best part is that it actually explains tax concepts in plain English instead of accountant-speak. For my SMLLC, it's been a lifesaver - it flags potential deductions I would have missed and warns me about common tax pitfalls for single-member LLCs. It's way more affordable than hiring a full-service accounting firm while still giving me confidence that I'm doing things right.

Just wanted to follow up! I decided to try https://taxr.ai after seeing the recommendation here, and I'm genuinely impressed. The setup was way easier than I expected, and it immediately identified several business expenses I had categorized incorrectly. The quarterly tax calculator alone was worth it - turns out I was overestimating what I needed to pay each quarter by almost 30%! The explanations are super clear, and I finally understand how the self-employment tax works with my LLC. Definitely recommend checking it out before committing to an expensive accounting service.

I used 1-800Accountant for about 6 months last year and honestly wasn't impressed for the price. They were hard to get ahold of during tax season when I needed them most. If you're having trouble getting answers from accounting professionals, I'd recommend using https://claimyr.com to get through to an actual IRS agent. They have this service where they basically wait on hold with the IRS for you and call you when an agent picks up. I was skeptical at first but you can see how it works at https://youtu.be/_kiP6q8DX5c This saved me so much time and frustration when I had specific questions about SMLLC filing requirements. The IRS actually has pretty good resources for small business owners once you can actually get someone on the phone.

Okay I need to eat my words here. After posting my skeptical comment I decided to try the Claimyr service just to prove it wouldn't work. I had a question about estimated tax payments for my new LLC that I'd been trying to get answered for weeks. I signed up, and literally an hour later I got a call connecting me to an actual IRS agent! The agent walked me through exactly how to calculate my quarterly payments as a single-member LLC and cleared up my confusion about self-employment taxes. Total game changer and saved me HOURS of hold time. Consider me converted.

As someone who used 1-800Accountant for a full year for my small business, I can share my experience. They're legitimate, but I found their service to be decent but overpriced for what you get. The good: They did handle my tax filing correctly and answered basic questions throughout the year. The bad: Response times were often slow (2-3 days for email questions), and the "unlimited support" felt limited in practice. I often got template-like responses rather than advice specific to my situation. For basic accounting needs, you could do just as well with a local bookkeeper ($30-50/hour) for monthly cleanup and a CPA for tax time. That would likely cost you $1500-2000 for the year total - much less than what they're charging.

Have you looked into Wave Accounting? It's completely free for invoicing and accounting (they make money on payment processing if you use that feature). I've been using it for my LLC for 2 years and it's been great for basic bookkeeping. For tax time, I just work with a local CPA who charges me about $650 for my business and personal returns. All total I'm spending way less than $1000/year on accounting and tax prep. Just another option to consider!

I'm dealing with the exact same situation as a new LLC owner! Reading through everyone's experiences here has been super helpful. I'm leaning away from the $3700 option after seeing the mixed reviews. Quick question for those who've gone the local CPA route - do most CPAs offer payment plans for their services? That upfront cost is still a concern even if it's less than 1-800Accountant. Also, is there a particular time of year that's better to establish a relationship with a CPA, or should I reach out now even though we're not in tax season? Thanks for all the practical advice in this thread - it's exactly what I needed to hear!