Promoting Your Tax Business

[Chief]

I know this may be a bad time to begin a discussion on promoting your tax business, but the discussion on Strange clients coming in at the last moment brings it to mind.

This year I donated two gift certificates for free tax return preparation. They were auctioned off at the church and I had no idea who had purchased them. Today, April 5, a man called and told me he was having trouble with Turbo Tax and would come over to have me look over his return.

I have no idea who the other person is. I've learned to put a void date on any future donations like that. Do you have other suggestions. Maybe I should donate money and or something unrelated to what I do.

[Bill Tubbs]

good point...

I've learned to put a void date on any future donations like that. Do you have other suggestions. Maybe I should donate money and or something unrelated to what I do.

I've given out a few certificates, and one hasn't been used yet this year (doubt it will be now). You made me wonder now if I'll see it next season... Which still wouldn't be the worst thing, it's just the uncertainty of it hanging out there.

As far as the Turbo Tax, I offer to people that if you want to bring in a return (whether self-prepared or other-prepared) that I would be happy to briefly look it over. If I don't see anything wrong, no charge; but if I do spot something, I will have to collect some $$ before I say what I see. Each year I get a few that take me up on it (mostly new clients for the current year anyhow, but they then bring in the past 3 years for me to review), but it also serves to tell people that I'm here to help and won't rip them off. Some have told me as much that it just increases the comfort level in coming to me.

Bill

[dsi]

Cheif, FWIW, I've donated 1/2 hrs of consultation time that was auctioned off at a community function. Most of these consultations became new clients. This past year I offered to "review" prior year returns in place of consultations. Much easier to do.

[Matt Sova]

donated

I donated tax preparation for a 1040 up to $250. This will cover most simpler situations and I won't be stuck having to do a 1040 with 2 sch C's, 3 sch E's and everything jammed into 2 shoeboxes that might cost the client $1,500.

[JoshinNC]

Matt, just a question

I had a client who came to me last year for a "free initial consultation" and told that she had "a couple" of residential rentals. I told her that I could prepare the return for her and it would be ready in about a week. She comes back the next day and gives me 21 folders, each for a different rental. So, I prepared the return that also included about 50 mutual fund sales, 2 W-2's and Schedule A. I gave her our traditional 10% new client discount, so the bill was around $800. She went balistic and said, "the preparer I used last year charged me $350 (no Sch. D and 3 rentals)". I gave her an extra $50 bucks off and told her to take the return back to that guy this year and see if she gets it done for less than I did it for (she sold some of the houses in 2005, just making it more complicated). She hasn't called yet, don't know what she's going to do.

Was my fee too high for this return?

[Brian EA]

I had a client who came to me last year for a "free initial consultation" and told that she had "a couple" of residential rentals. I told her that I could prepare the return for her and it would be ready in about a week. She comes back the next day and gives me 21 folders, each for a different rental. So, I prepared the return that also included about 50 mutual fund sales, 2 W-2's and Schedule A. I gave her our traditional 10% new client discount, so the bill was around $800. She went balistic and said, "the preparer I used last year charged me $350 (no Sch. D and 3 rentals)". I gave her an extra $50 bucks off and told her to take the return back to that guy this year and see if she gets it done for less than I did it for (she sold some of the houses in 2005, just making it more complicated). She hasn't called yet, don't know what she's going to do.

Was my fee too high for this return?

21 Rentals x $25= $525
Each rental sold (4797) @ $35
DEpreciation. 21 x $10=210
1040 = $50
Mutual funds sold @ $10 each
Scd D each item $10

Was your price too high. You decide
She will be back; if not this year, then next year for the amending

[JoshinNC]

thanks for the reinforcement Brian

She is just looking for cut-throat pricing and I'm not willing to shoot myself in the foot to add one more headache!

[Armando Beaujolais]

You also have to ask yourself why the client is out looking for a new tax preparer. You can bet there was trouble in paradise with the previous preparer. My point is that you're not doing anything wrong. Stick to your guns. If you're lucky, the client will go somewhere else next year and you have one less Excedrin Headache to deal with.

[Matt Sova]

My price

I had a client who came to me last year for a "free initial consultation" and told that she had "a couple" of residential rentals. I told her that I could prepare the return for her and it would be ready in about a week. She comes back the next day and gives me 21 folders, each for a different rental. So, I prepared the return that also included about 50 mutual fund sales, 2 W-2's and Schedule A. I gave her our traditional 10% new client discount, so the bill was around $800. She went balistic and said, "the preparer I used last year charged me $350 (no Sch. D and 3 rentals)". I gave her an extra $50 bucks off and told her to take the return back to that guy this year and see if she gets it done for less than I did it for (she sold some of the houses in 2005, just making it more complicated). She hasn't called yet, don't know what she's going to do.

Was my fee too high for this return?

My price for this return would have been $1500 plus $50 for each house sold. The prior year return with 3 rentals and my '04 price schedule would have been about $350. You should point out to her that she has 18 more rentals this year than she had last year and each one takes time in preparing, reviewing and processing. Also each Schedule D transaction takes time as well and she did not have any of that the previous year.

Matt

[JoshinNC]

that's what I told her, but she wasn't "listening"

I'll know within the week whether she's coming back or not. Last year she filed an extension, so she may call on Monday wanting the same thing.

Thanks to everyone for helping me make sure I'm not an overcharging ogre!

[Safire]

She is getting a deal.