Consultation fees: To charge or not to charge?

[gailtaxed]

Consultation Fees

I have to agree that I want my clients to call about tax questions during the year instead of going ahead and doing what their hairdressers nephew who is taking business classes in high school told them would be the best situation. I also will give them another copy of their tax return at no charge. However, the third, fourth and fifth copies of the return are going to cost them. I do have other things to do with my time besides copying their return. I used to not charge for initial consultations, but I am not sure people really respect that - many times I never saw the person again after giving advice on their business/bookkeeping setup. For tax consultations, I will meet and give them an approximate price for no charge, but once we start on the return I expect to be paid (except for a few instances where I want them to leave so badly that I don't care about the money - just don't tell anybody that I ever talked to you!

[JoshinNC]

I started a new practice last year

I tell potential clients that we can "meet & greet" and that includes answers off the top of my head; for research and/or computations my hourly rate applies, but I'll count $X toward their tax preparation bill. For continuing clients, it's pretty similar: quick answers are always free, but lengthy research and/or calculations will be $Y per hour -- that depends on my perception of their needs and how much I'll have to study. Sometimes, I say that to them and ask for payment now or offer to add it to their next bill. For the ones I know and know what to expect in the way of needed advice throughout the year, I've built it into their tax preparation bills and don't have to say anything to them until/if their need for my time increases. I try to build it into tax return fees and/or monthly bookkeeping fees so they actually do call me with questions and concerns and don't wait until next April to tell me what they did.

For some of my monthly bookkeeping/payroll clients I began offering them unlimited consultations for an addition to their monthly fee. In general it runs $100 - $125 per month. Some months they get more than they paid for, most months they get less.

[BOB W]

Charging consultation fees can be dependent upon where your practice is at. During the first 5 years of practice, you're just happy that people are showing interest in you, free consultations (up to a point). After that, it depends on how far you want grow.

I think the first 30 minutes is a proper time allocation for free consultations. That amount of time is enough to get to the crux of the issues and compatibility issues. After that it should be for a fee. Yes, only simple answers for the first 30 minutes.

If the issues developed during the consultaion are beyond you, you need to make a decission. Is it a area you want to develope with-in your practice, then your billing fee should be reduced for all research. If you don't want to take on that kind of work, you should say good-bye at the 30 minute point.

After your practice has grown and your time is limited, you are forced to charge for ALL consultations, unless you are still trying to grow further.

Free consultations is a way to grow your business because it gives potential clients a chance to meet with you in a non-commital forum. It gives you a platform to sell your personality and compatibility with the potential client. Your knowledge in most cases is a given but it allows you to shine if their topic is within your practice's scope.

[fliszt]

During tax season

I do not charge for 1st 30 minutes. Sometimes I do not charge for the 1st hour if they are clients that have been with me for years. I charge $125/hour for all other in-person meetings (with some exceptions). I tell all clients that as part of my service, they may phone me, any time during the year, at no charge, providing the questions require no research. I charge by the form and the $125/hour is listed on my price list in bold print. I received a call this a.m. from a nice but pesky client wanting to know what additional tax would be paid if he sold his duplex. I told him to look at the sheet I prepared last year. He said he couldn't find it and would pay for my time to redo. I told him I would not go through the work a second time. We talked for about 15 minutes. No charge. I just received an emai from him -- he found the information I prepared last year. Hmm.
But there are many times too, that I do not charge for personal meetings but that is all about trying to be reasonable and not make money just because I could. I want all clients to feel that I give excellent service for the money they pay or do not pay.

[Lion]

Charge

I have told non-clients my hourly fee, depending on the type of work they need, and said I have a minimum $100. I've also said I'll apply $100 of their consulting bill to their first bill should they become clients. (I guess that could make it their second bill from me, but their fist bill as continuing clients, you get the gist.) Here in Fairfield County, CT, anything under $100 is meaningless as far as getting people to value my advice.