Consultation fees: To charge or not to charge?

[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.

[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.

[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.

[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.

[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!

[Lion]

Time

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.

[RJM]

YES, add to return fees

For prospective clients, initial visit is no-charge. For accounting clients, this can range up to 4 hours. For tax-only clients, usually an hour. After that, routine tax advice $100 to $120 per hour added to tax return invoice. For larger, more involved consults, I bill currently at usually $120 per hour, but I give many freebies depending on mood. I agree with earlier poster saying that charging for your time is generally viewed positively by clients. It also helps weed out time-wasting stupid questions.

[JoshinNC]

Depends on who they are and what they want

For new/potential clients they get a 30 minute free consultation. I will give no tax advice or planning during this meeting. It is simply a get to know each other meeting. I explain up front that my personality can't possibly mix with everyone so there will be potential clients who won't like me and vice versa. I'd rather get that out of the way up front than have to "fire 'em" in 6 months. After that I charge my regular rate of $75, except for representation work which is $105.

All existing clients get 1 30 minute phone, email, office consult at any point during the year for any reason. If they want to check withholdings that's what we do. If they want to discuss retirement planning that's what we do. If they want to talk about my Mississippi Mud cake recipe that's what we do. After that, it's $75 per hour. When they leave after just 30 minutes I say "Ok , that was your free 30 minutes. Next time I will charge my normal hourly rate." That way there's no question. I also started taking credit cards last year for those "I don't have my checkbook/cash" folks. Most everyone has a debit card.

[dsi]

My consultation fee is $150/hr. I've found that when I didn't charge, my clients didn't consider my advice worthy. About 11 years ago I began charging a consultation fee and my clients were quite a bit more interested in my advice.

For $45 I burn 3 years of a cient's tax return onto a CD. For $25 I will e-mail a copy of a client's tax return to whomever they wish (bank, lending institution, etc). Otherwise, a paper copy of their tax return will cost them $45. Every client that has requested a copy of their return has been very happy with my fees.

[erchess]

Consultation Fees

I charge to prepare forms and to represent. Although my preparation fee is per form it works out to the same $75 per hour that I charge for representation. If I had to appear in court as a witness for a client I would definitely want $75 per hour for my preparation time and $200 for every day or $100 for every half day or less. I do not charge for tax planning if I did the previous return. I used to not charge for tax planning or extensions in any case but clients were getting me to do that then never calling about their returns so I started charging $100 for planning or extension but making it clear that this sum will be credited toward the price of the return. One fellow seemed so disorganized that I doubted I would hear from him again and I charged return price up front for the extension. He eventually met with me to complete the return but he didn't have social security number on the owner who is contributing money and so I still have not filed the return. I have my fee and I will file give him the return to sign and mail within two of my business days of his giving me the missing information. I do charge my representation fee but minimum of $200 to put a tax opinion in writing other than an opinion that the income a person has told me about is insufficient for them to be required to file a return.

I do my work in my clients' homes and I continually consider having a minimum fee for walking in their door. However what I currently do is "guarantee satisfaction" at the time service is provided. In other words if they are not happy with the return I believe to be correct or if they are not happy with what I propose to do in terms of representation, I will go away with no fee and also of course no benefit to them beyond whatever they can remember from the meeting.

[veritas]

I use the

IDOMM method.


(It depends on my mood)

[JAinNC]

First 30 minutes

for potential client is no charge. Over 30 minutes is $40 per hour.

[WhiteOleander]

so I'm sending my railroad watch guy to you. What kind of pie? I've got one that brings us about five-ten pounds of frozen catfish every year (if he doesn't owe more than $75 tax).

No please. No more "Just dropping in folks".

The pie was Lemon Meringue. I ate a bite or two. But my general rule is if it a'int chocolate, it a'int worth it.

I'll pass on the catfish too.

[joanmcq]

I charge $95/hr for consultation, for example the possible client that wants to know if her settlement will be taxable and brings in file cabinets of docs for me to wade through, and also wants info on cancellation of debt.

Current client, ex brother in law whom I like and don't get to see much, $25 for highway use tax form and a half hour to hour of jabbering/gossip catch up, and me telling him he needs an IRA. Phone calls and what not, free. Tax planning at current hourly rates (see above). Anything that has to do with testafying in court as an expert witness..at least $150/hr or more.

[RLymanC]

Consulting

I'm always being told that I am to benevolent, I tend to agree.

I'm happy to see clients in the off season if they require any help or need a copy of previous years taxes.

I gladly supply my time and copy services at no charge.

I should mention that I operate a home office with no employees during the off season. My overhead is my office ceiling and it doesn't leak at the moment.

Just had one come in this morning that will be retireing at the end of the year and wanted some advice on tax withholding. Gave him my recomendation, had a nice visit and he said "see me in a few months."

Charging him for my service really did not enter my mind.