How many of your tax preparers have clients that want a fixed fee after you spend up to an hour looking over the TP's documents then after you dig in you locate quite a few things missing? Do you then increase your fee? If so does your clients have an issue with that?
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Clients will complain if the fee is beyond the high range I quote, and I guess I don't blame them. I wouldn't like that from a car repair guy or anyone else who was doing something for me that I cannot do myself because I don't know the first thing about what it takes.Originally posted by AZ-Tax View Post
I believe that if I don't surprise my clients with a bill they weren't expecting, they won't surprise me by not paying. I quote a flat fee range and stick with it. If I made a mistake in my quote, then that's my fault and my tough luck. And I have made those mistakes like everybody else. I don't mind very much. Most of these clients recognize I'm being fair and know they were a PITA and they turn out to be good sources of referrals.
I've said before: It's easier to discount your fees than to raise them. My stated fees are about the same as the tax prep chain offices. I discount for paperwork in good order, paperwork received early, new client, starving student, good referral, whatever. -
Az,
I have a published price list which covers 99% of the things we do. Then the final 1% is covered by a fixed dollar amount. I charge $125/hr for the catch-all items not covered by the schedule prices. I lost one client this year which I'm sure was related to her bill last year. But, I have no client that has "told me" my pricing structure is off kilter. In fact for several years it was the opposite -- I charge too little. But I believe I have remedied that situation. I did not raise prices this year, and in fact I did many more returns gratis than in years past. And many were charged $20 to $50 for the return. For the low income returns, I try to charge what they would pay at Best Buy for TurboTax + state. But, I'm not young while trying to "build" a practice anymore. I feel more compelled to help society, to try to give back what I've been given over the years. But on the other hand, I do not spend an hour looking over a tax return prepared by another preparer for free. I tell clients up front what I charge. And on the otherhand, I would not charge anything for reviewing a return that had no errors. Minor errors I let go. Errors which result in refund for clients equals an amended return for which I do charge.
I've tried to answer your questions, but if not, let me know.
LarryComment
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I charge, charge, and charge. I blame it all on Congress. After all, I don't pass the stupid tax laws, Congress does and they need to take the heat.Dave, EAComment
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