question about rates

[JohnH]

Estimates

Whenever someone asks for an estimate, you colud always use my former pastor's reply when someone would ask about the appropriate honorarium for a wedding, speech, funeral, etc. He would say, "Well, the average is about $50, but hardly anybody ever pays average."

[Y2KEA]

I am in South Texas and my 1040 hourly rate is $95. But I bill by the form and/or schedule and the items on it. My average hourly rate using that fee divided by my hours is about $150/hour.

Billing by the form and/or schedule does generate a very larger bill, but it also helps to be consistent with your billing. You use a fee schedule, add up the items that apply to that return, and you have your bill. Helps when someone asks for a quote and is a new client. I take their prior year return and calculate a fee. I tell the client that this is just an estimate.

The $420 is schedule & line item based. The $95 is for additional work such as determinig basis.

[SueBaby]

The $420 is schedule & line item based. The $95 is for additional work such as determinig basis.

So if You have done 19 pages of stock at midnight and plus 2 big sch Cs what would you have charged or any one else on this? Not counting the phone calls to gather info on it.
Now I really think I was way below the average for that work. $450!!!!

Plus him being mad would have been an extra $500. No thank you either would have been at least $200.

[BP.]

Thanks to those of you who always remind us to charge adequately for our work. Client was in yesterday. She & spouse are in their 70's. She made an unusually (for them) large distribution from their retirement funds for some medical expenses. (No FIT w/h.)

Her kids were on her to get an estimate on the taxes and pay it. She happened to be at her lawyer's office having a will revision. The lawyer gave her a referral for the estimated tax work, and between that and the pressure from the kids, she had this firm figure her est taxes for 2007, rather than call me. In fact, she did it herself in 5 mins and got the same result. But it was a vulnerable time for her, and like I said, she felt some pressure.

They billed her $1,400 just to figure the 2007 estimated federal taxes @ $100/hr for 14 hours of work. Wow! Cheaper to pay est tax penalty. Reminds me to keep the fees strong. (But not insane!)

[fliszt]

Jiggers, I do the same

as you. But I have a "price list" with most forms on it to pass out to clients. I ALSO have a line that says "Dependent on organizatin of your records, $125/hr or quote". As with the other replies, I too bill the clients at "list price" and then record a discount so the client will actually see what the bill was.

[Jiggers]

Extra Work

as you. But I have a "price list" with most forms on it to pass out to clients. I ALSO have a line that says "Dependent on organizatin of your records, $125/hr or quote". As with the other replies, I too bill the clients at "list price" and then record a discount so the client will actually see what the bill was.

I have a sign in my office in several places that says:
1. Tax return preparation fees are based on forms and/or schedules prepared.
2. There is an additional fee to organize and/or total your information.
3. Conferences are billed at an hourly rate.

[fliszt]

That's a better

idea Jiggers. Thanks!!!
Larry

[JohnH]

I have a sign

My sign says:
1) Hourly rates - $ 100
2) If you watch me - $ 140
3) If you laugh at me- $ 180
4) If you help me - $ 280

Discounts are based on attitude (either yours or mine, depending upon circumstances)

[fliszt]

Cute John

We all need a chuckle every now and then.

[Peachie]

I like this Jigger.

I have a sign in my office in several places that says:
1. Tax return preparation fees are based on forms and/or schedules prepared.
2. There is an additional fee to organize and/or total your information.
3. Conferences are billed at an hourly rate.

Sure hope it's ok to borrow it. I think this will be the last year that I'll have to run totals for clients too busy to do so themselves.

Peachie

[SueBaby]

My sign says:
1) Hourly rates - $ 100
2) If you watch me - $ 140
3) If you laugh at me- $ 180
4) If you help me - $ 280

Discounts are based on attitude (either yours or mine, depending upon circumstances)

How much if you get mad at me?

[Jesse]

My sign says:
1) Hourly rates - $ 100
2) If you watch me - $ 140
3) If you laugh at me- $ 180
4) If you help me - $ 280

Discounts are based on attitude (either yours or mine, depending upon circumstances)

Oh my gosh that is too funny -especially option #4! I am going to print & post.

[JohnH]

I hoped you'd like it

Thanks for the compliments, but I need to confess I got it from my mechanic's wall.

Somehow I think that's appropriate, since many of my clients consult him for tax advice anyhow and I felt I deserved to raise my charges to the same rates he charges.

[geekgirldany]

Bookkeeping

Instead of starting another post I will just keep this question here. Wondering how much you all charge to do bookkeeping? I've been charging a flat rate. It was $30 per hour and now I have went up to $40-$50 an hour. Min 2 hours work.

The reason I asked is that I had a association call today and asked me what I would charge to keep their information on quickbooks weekly. I told her $40 to $50 per hour. She said that was too much to do it weekly. I told her that it might be that it only needs to be done biweekly or monthly but that was my charge. The last customer I did weekly bookkeeping I charged $30 an hour min two hours.

Just wanting to make sure my charges are reasonable. The gal seemed shocked at my pricing.

[Jiggers]

Way too cheap

Instead of starting another post I will just keep this question here. Wondering how much you all charge to do bookkeeping? I've been charging a flat rate. It was $30 per hour and now I have went up to $40-$50 an hour. Min 2 hours work.

The reason I asked is that I had a association call today and asked me what I would charge to keep their information on quickbooks weekly. I told her $40 to $50 per hour. She said that was too much to do it weekly. I told her that it might be that it only needs to be done biweekly or monthly but that was my charge. The last customer I did weekly bookkeeping I charged $30 an hour min two hours.

Just wanting to make sure my charges are reasonable. The gal seemed shocked at my pricing.

Schedule C/F Monthly Bookkeeping - $75.00/hour for my time + $25.00/hour for computer time. (Computers & printers cost money)

1065/1120/1120S Monthly Bookkeeping - $85.00/hour for my time + $25.00/hour for computer time.

Plus extra charges for quarterly/annual payroll reports.