Fee dispute

[taxxcpa]

Billing

It has been several years since I have had a client complain about the bill. Most of my clients are not living from hand-to-mouth.
Some are very honest. Recently a client had won some money at a casino and got a W-2G. I told him he could deduct losses, not to exceed gains. He said he didn't have any losses. I wonder how many people are that honest.

[DMICPA]

Billing

I have always told the client what I would expect the fee to be prior to doing the return. I explain what I think is involved based on the documents they provided, and the turnaround time etc. I want them to know the cost so I don't have to argue to get paid. New clients especially. I would not want a painter, attorney to do work for me without me having some idea of the cost and would expect the client to know what the cost would be.

If the client has a problem with the fee quote, we try to settle it before doing any work. If an agreement cannot be reached, I suggest they go to someone that can meet their price. I show them fee schedules from other CPAs and H&R Block. Considering my 30 plus years of experience, if they are unhappy with my fee, they should go elsewhere.

It is a lot easier to get the cost determined before doing the work then to try and collect after giving them the returns. You simply have no leverage.

In the past I have had clients agree to the quote and when they pick up the returns, they start arguing about the cost that they previously agreed to. When this happens I remind them of their approval of the fee and all the work that was done. They have always paid. I have dropped clients after getting paid because they tryied to change the price after the work is done.