How Do You Charge?

[erchess]

I was wondering how people charge at present. Any discussion would be welcome.

[erchess]

Form and task

I presently charge by the form (or sometimes part of a form or even line entry) for preparation and also on a per task (for example a phone call or letter to the taxing agency is a task) basis with a minimum fee for audits.

After tax season I think I will go to a time charge system with a minimum fee for each type of form from 1040 EZ through the 900 series. I have found out that my software will track the time I have a return open and for other work I need to keep records of my time anyway so its ok to use them for billing. I think I will continue to have a minimum fee for audits just because there is non billable time and expense involved in finding and negotiating with the client who is being audited. I also have to remember that while my time and effort are part of what I am selling I also am selling my expertise. This plan will automatically compensate me for individual differences in levels of client organization which can make a big difference in how much time and sweat is involved in the return.

[ToledoEd]

We have always billed by the form, but with leeway to adjust for the circumstances, and occasionally client attitude.

[SueBaby]

We have always billed by the form, but with leeway to adjust for the circumstances, and occasionally client attitude.

If I billed by the clients attitude-----I would be rich!!!!

[oceanlovin'ea]

I guess I charge by the form. I make sure I charge for all forms, but I use a lot of leeway in what I charge. People I have had for a long time probably pay less than new clients.

When I get new clients, I am trying to start them off with a higher base rate.

Since I am on my own and don't answer to anyone, my charges are not as uniform as they should be. I give discounts to some people for a lot of different reasons. I am glad that I have that option when I want to use it.

Linda, EA

[AJsTax]

by the hour

Everything in the office is charged by time. We are flexible during taxseason, if the return warrents it there may be an upcharge, especially if we have to change it a couple times.
That is one thing I do not understand with this place, plumbers and electricians around here are getting 98 an hour. we get less on regular work and only a little more during tax season. and we are all licensed preparers, cpa or EA.
Oh well. If I wanted more I coudl move to a different climate!!

[Matt Sova]

By the form/work

For 1040 prep it is generally by the form. The difference comes in where I have to prepare something that is a complete shambles. Then I charge by the hour for the accounting work.

I use to do 1040 work by the hour until I realized how much money I was losing by doing it that way. Software has made us much more efficient and the work does not take as long as it would if you were to sit down and apply your knowledge with pen and paper.

[geekgirldany]

I charge by the form. But I will adjust the price depending on the client. I have also been keeping track of my time spent on returns. I found a couple of biz returns that I spent more than I would charge hourly. So I adjusted accordingly.