Hiring an Accountant for your Farm

How Accountants in Agriculture Charge

  1. Hourly – Usually charge between $90/hr-$150/hr, depending on the complexity of the job.  The vast majority of accountants actually work on an hourly basis.
  2. Value Driven – When the job will be time intensive and the accountant may get a contingency (cased on sales or revenues)-this is rare.  Also, if you bring the accountant a showbox, they may chare you a flat fee to get everything sorted out.

The cost to prepare a return can vary widely, depending on whether you bring a shoebox of receipts or very good records.

The typical corporate tax return will cost between $1000-$2000 to file.

 

Three Kinds Of Agricultural Accountants

  1. CA (Chartered Accountant)- Work in public practice (giving advice to clients) or in industry.
  2. CMA (Certified Management Accountant)- Work in industry (for a company) managing their books.
  3. CGA (Certified General Accountant)- Will generally work in public practice, may specialize in certain area.  Similar to a CA, generally have clients that run a smaller business.

 

Does Size Matter?

Depending on your situation, this type of firm will fit you best:

Owner-managed-company:  Small Firm

50+ Employees, $20 million annual sales:  Medium Firm

Publicly traded and multinational companies:  Large Firm

 

Questions To Ask Your Accountant Before Hiring:

  1. Should I incorporate?
  2. Do you specialize in any area?
  3. How big is your firm?
  4. What kind of clients do you deal with?
  5. Any Industry Knowledge?

*Most importantly trust your gut and choose someone you have chemistry with and can trust. 

 

Questions Accountants May Ask You On The Phone:

  1. What type of business are you in?
  2. Is your business making money or losing money?
  3. What is your family situation?  The accountant will be looking for income-splitting ideas.
  4. How capital intensive is your business?
  5. Are you going to register for GST?

Asking the accountant how they deliver their service and explain things to you is very important!

 

Copyright: Freedom Investment Club 2005

 

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