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[NEWB] How to work with an accountant?

HiMyNameIsTom

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So I'm really just starting the path this year...Jan-Mar I've been doing a bit of freelance software development (slowlane), and I'm committing to going fastlane and so I'll move in with parents to cut expenses (who know what I'll be doing so I assume won't be hounding me "get a job" at least for a good 6 months...will see how that goes). I may do a bit more freelance work for 3-5 months at a higher rate to stash some savings. But since I'll be doing some freelance and in a best-case scenario possibly start earning recurring revenue by end of year, and possibly live in as many as 3 states, it seems like I need an accountant.

I imagine I should get someone in the state I'll be living in longest (in Louisiana, where my parents are) -- my dad gave me the contact info of a CPA he uses for taxes (he works and does a lot of stock market investments, no business though). How would I evaluate this guy?

Basic questions I imagine to ask:
1. Do you mainly work with people earning incomes in W-2s or do you also work with freelancers who get 1099's and/or people in sole proprietorships who are starting to earn income not tied directly to working hours?
2. Can I earn income as an "independent contractor" and through a SAAS business in the same business structure or would I need to actually incorporate a business for the later and do the former separately?

Also, do I pay for his time when I'm calling and asking questions, or how does that really work? I think I'm going to plan on just eating the penalty and not paying quarterly taxes this year (since my estimated taxes will be so far off anyway since I have a lot of random options that may or may not come up in the next few months in terms of income sources and I may live in California between Nevada and Louisiana for 1-3 months) -- so will the guy just bill me for a 15-60 minute phone call, given that I may not even file taxes for 2016Q1 and already filed my (W-2) taxes for 2015 with TurboTax, if he is the right sort of guy to work with?
 
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jon.a

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So I'm really just starting the path this year...Jan-Mar I've been doing a bit of freelance software development (slowlane), and I'm committing to going fastlane and so I'll move in with parents to cut expenses (who know what I'll be doing so I assume won't be hounding me "get a job" at least for a good 6 months...will see how that goes). I may do a bit more freelance work for 3-5 months at a higher rate to stash some savings. But since I'll be doing some freelance and in a best-case scenario possibly start earning recurring revenue by end of year, and possibly live in as many as 3 states, it seems like I need an accountant.

I imagine I should get someone in the state I'll be living in longest (in Louisiana, where my parents are) -- my dad gave me the contact info of a CPA he uses for taxes (he works and does a lot of stock market investments, no business though). How would I evaluate this guy?

Basic questions I imagine to ask:
1. Do you mainly work with people earning incomes in W-2s or do you also work with freelancers who get 1099's and/or people in sole proprietorships who are starting to earn income not tied directly to working hours?
2. Can I earn income as an "independent contractor" and through a SAAS business in the same business structure or would I need to actually incorporate a business for the later and do the former separately?

Also, do I pay for his time when I'm calling and asking questions, or how does that really work? I think I'm going to plan on just eating the penalty and not paying quarterly taxes this year (since my estimated taxes will be so far off anyway since I have a lot of random options that may or may not come up in the next few months in terms of income sources and I may live in California between Nevada and Louisiana for 1-3 months) -- so will the guy just bill me for a 15-60 minute phone call, given that I may not even file taxes for 2016Q1 and already filed my (W-2) taxes for 2015 with TurboTax, if he is the right sort of guy to work with?
My CPA doesn't bill me for phone calls. Of course we file 6 sets of tax returns. :(
 

Trud09

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Not sure if your questions ever were answered.

I would go with a private company if you want the best tax advice. Look for a CPA or an EA not a regular tax filer like H&R block. I am not saying those are bad, but those are W2 mills. Some will charge differently I would assume.

The questions you ask border on Tax advice, which I can't legally give about running the income through the same entity. You also shouldn't have to pay a penalty.

If your questions still aren't answered, let me know.
 

ZCP

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Get recommendations. Interview a couple of them. Pick one.

Send them your previous returns for feedback and thoughts. (They may pay for themselves right there with what they find.)
Ask them all of your current questions.
Ask about feedback loops.

We email questions to our CPA then post then post the answers internally. If he spends any significant time, he bills us. We do multiple companies and payroll through him, so he answers questions.
 
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HiMyNameIsTom

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Thanks for the bump and further answering the questions I posed.

One further piece of advice I got from a friend who I asked these sorts of things personally at the time, was that he told me having an accountant in your local area isn't as important as you might think it is. (One part of my uncertainties I may not have clarified as much here was having income in different areas and not knowing which state I should have an accountant based out of.)
 

zargor

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One of the best ways to get the information you need is see if you can sit down with an accountant and simply ask them.

Easier said than done sometimes but if you contact an accountant's office and say you are changing accountants to one that has more business expertise then you may get a meeting.

Most decent accountants won't charge for an initial meeting as it's an opportunity for both parties to see whether they can work together.

If not, then for the sake of a half hour meeting, you'll probably walk away with more information than you thought.
 

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