Raise Our Fees

[ChEAr$]

When I started my tax service business 25 years ago, I talked to another tax preparer who
had been in business for many years. He advised the FIRST rule is NOT to attempt to
prepare returns while the client waits. There are MANY reasons: it makes you hurry and
greatly increases your chance of making an error, it causes others to wait upon you
to prepare the returns and on and on. It serves NO purpose that I can see. A client of
mine for many years recently went to a preparer who prepared returns while you wait. He
said he would NEVER go back there again after he spent most of the day there. I am an EA.

35 years ago I would agree with this first rule above. In olden days I would interview client, tell him ready in a week, 10 days, 2 weeks, depending,.... Then as the return came up to the top of the stack, would prepare the return, using #2 pencil, put it aside. next day check it out. Then in another stack for helper to process, you remember, making copies of all three (or two) tax returns in sufficient numbers, signing the copies to be filed, envelopes, making the bill out, putting in big envelope.

Nowdays, I schedule an hour for each appointment (and most don't take an hour), so with today's excellent technology I'm able to complete all three returns with client there, plus assess different itemizing strategies among the three returns, print it out, get client to sign the forms and many times he's got the checkbook out long before I get everything finalized!

Life is much simpler these days without having to print out all that paper. Heck I even offer client .pdf copy of the returns if he wants me to email them instead of paper copies.

[RitaB]

I have to mess with this guy

I don't play games with my clients.Peachie

I'm gonna have to mess with one guy that just came in. I had to get him an extension last year cause he brought his stuff in too late, and items were missing. I got it done in April, but because he owed, he let it sit here till August.

THIS year, he called first of March to see when's the latest he could bring it in and I could still get it done. (Why, is there a prize?) I told him no guarantees, but try to get it here before next week for sure. HE BROUGHT IT TODAY, and his first question was, "Can you get it done?"

On the other hand, another gentleman knocked politely and walked in right after butt head left. He waited patiently while I finished the copying I was doing. He apologized for being late, said, "I appreciate you so much, and I DO NOT expect you to get this done, an extension is fine by me, young lady."

I'll take Door #2. That "young lady" gets me every time.

[luke]

yes raise

FEES - this is an excellent thread (this subject has been brought up MANY times but is still relevant!) - I have been raising my fees a little (5%?) each year for the past couple of years - yes I get SOME complaintys and YES I have reduced fees for some.... But you know what, I am still charge significantly LESS than local HRB! So who's the dummy here....?

[RitaB]

I am with you

When I started my tax service business 25 years ago, I talked to another tax preparer who
had been in business for many years. He advised the FIRST rule is NOT to attempt to
prepare returns while the client waits. There are MANY reasons: it makes you hurry and
greatly increases your chance of making an error, it causes others to wait upon you
to prepare the returns and on and on. It serves NO purpose that I can see. Most clients do NOT
WANT to wait on a tax preparer to perform the work to prepare a return. Why should they? A client of
mine for many years recently went to a preparer who prepared returns while you wait. He
said he would NEVER go back there again after he spent most of the day there. I am an EA.

I can't imagine doing returns while the client waits, mainly because I work year round doing bookkeeping, payrolls, etc. so there would be constant interruptions from my monthly clients. And, I can't tell you how many times I've thought of things I needed to do because I had time to let the return simmer a little. I just don't always think of everything I need to at the time a return is dropped off. But, it works for some of you, so that's cool. And, I lose two or three a year to the fast guys, so there you go.

[Peachie]

You are right Harlan

Peachie, you might also think about putting an EA after your name, too.

EA would look just fine. Now to figure out all of the things involved with Partnerships, Corporations, etc.

Peachie

[Peachie]

So much has changed in 25 years Dyne,

When I started my tax service business 25 years ago, I talked to another tax preparer who
had been in business for many years. He advised the FIRST rule is NOT to attempt to
prepare returns while the client waits. There are MANY reasons: it makes you hurry and
greatly increases your chance of making an error, it causes others to wait upon you
to prepare the returns and on and on. It serves NO purpose that I can see. Most clients do NOT
WANT to wait on a tax preparer to perform the work to prepare a return. Why should they? A client of
mine for many years recently went to a preparer who prepared returns while you wait. He
said he would NEVER go back there again after he spent most of the day there. I am an EA.

but one thing remain constant with me--I never want to lose the personal touch with a client. I work by appointment only and their time is their time. No Interruptions and I am never in a hurry. No one's waiting. I know how long it takes me to prepare a return and I book accordingly. It's rare that I have an overlap. When I do, they get to wait a few minutes in nicely accommodating family room and watch tv.

I did a survey once to see what kind of atmosphere my clients did and did not want. I also wanted to know if I decreased my fee would they be interested in dropping off the return or coming in on a first come-first served basis. Funny thing was--they like just what I provide-fees and all. I know what works best for me and my clients. However, I welcome all advice and kindly say thank you to anyone providing it.

What it comes down to though is you say tomato and I say ta-mah-to. What woks best for each of us, hopefully, leads to happy clients on both sides.

Peachie

[Peachie]

Life is much simpler these days without having to print out all that paper. Heck I even offer client .pdf copy of the returns if he wants me to email them instead of paper copies.

Now here's something I will consider for next tax season. This is a great idea. I just have to make sure they have computers and e-mail addresses. I am surprised that people still don't have e-mail addresses and a few no computer-AMAZING!!

[ChEAr$]

FEES - this is an excellent thread (this subject has been brought up MANY times but is still relevant!) - I have been raising my fees a little (5%?) each year for the past couple of years - yes I get SOME complaintys and YES I have reduced fees for some.... But you know what, I am still charge significantly LESS than local HRB! So who's the dummy here....?

Have you seen an HRB tv commercial in which they advertise that they will do your tax
return for one half of what the "guy" charged you last year?

So, if a new client paid only $85 last year for what HRB would ordinarily charge $ 210 for,
they'll do it for $ 42.50, and forgo the added $ 167.50.
Wow, they ARE hurting this year.

[geekgirldany]

I have had problems with my fees also. I've posted on it many times before. I sometimes feel like Jerry McGuire "help me help you.... help me help you". I want to "help" people to much.

I started going up on pricing last year. Slowly increasing. I do think it puts a value on yourself. They go to CPA or HR and pay $300 or more. Come to me and I charge them from $100 to $200... what does that say about me?

I had a long talk with a website designer buddy the other day. We were discussing about what I going to charge a website client for a new site. He told me that he would do the site for $x,xxx. I was alot lower. He finally told me it was all about self worth. Which is totally true. We need to charge what we are worth.

I want to help people but I don't want to lose money or my mind doing it.

[Gretel]

Now here's something I will consider for next tax season. This is a great idea. I just have to make sure they have computers and e-mail addresses. I am surprised that people still don't have e-mail addresses and a few no computer-AMAZING!!

Lots of people in my area don't have a computer.

Just a side note: E-mail is not a secure method of sending confident info. Be sure to have the PDF encrypted or use some other measurement of security.

[Peachie]

Good point

Lots of people in my area don't have a computer.

Just a side note: E-mail is not a secure method of sending confident info. Be sure to have the PDF encrypted or use some other measurement of security.

Gretel. I think my e-mail software encrypts the e-mail I send but I will verify it.

I know there are people that feel it's ok not to have a computer but my life has been so simplified with a computer. I did my first tax return using TT in 1988 with a computer. I have never looked back. Don;t miss that eraser at all.

Peachie

[Burke]

Reply to Rita's Post:

I agree. I have never done returns while the client waits unless you count the old days when I went to people's homes and did them with pencil and paper. And even then it was not guaranteed it wouldn't change. I always took them back to my office (in home) for checking and processing, then either mailed or they picked up. Now a very large percentage of my business is drop-off for regular clients. Sit-down interview from start to finish with new ones, including review of past 3 years. But nobody gets it the same day. I find many things may change in processing or completing. Especially at 3:00 am in the morning.

[taxxcpa]

While-U-Wait

I seldom prepare a return with a client waiting. I like to enter all the information in the computer, then wait a day or two and recheck everything. I may look at a schedule A and see that I forgot to enter the Real Estate tax or the client forgot to give it to me. Today, I rechecked a return and found I'd left off a 1099-R. The client had a lot of 1099MISC forms, which had already been included in her income tally and I may have assumed that all the 1099s were irrelevant--Wrong!

It is very easy to miss something when you have a multitude of papers unless you have them arranged so that everything is grouped by the form on which it is to be entered. And even then something could go wrong, something could distract you.

I have one client who waits for me to do his return. When I finished it, I forgot to have him sign the Form 8879 and had to call him and mail it to me.