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I once watched a squirrel burying nuts in my front garden. (Why not? Nice soft soil, no hard digging.) A chipmunk was hiding under a hydrangea in the other front garden. Every time the squirrel left to go get another nut, the chipmunk dashed across the walk and unburied the last nut, took it home, then returned to its hiding place.

The original owner of our firm seemed to have no rhyme or reason to his fees, until it hit the new owner and me that he was often charging based on ability to pay. That applied mainly to wealthier clients, who had exorbitant fees. Those with six-figure incomes with little more than W2s, Sch A, and bank interest were on the hook for $600 or more (and this was 20 years ago). A family-owned group of businesses that was making tons of money was charged triple just for monthly bank reconciliations compared to our other business clients. When he sold the firm, some of the clients did question their fees. We reduced most of them, many before they asked. So charging based on ability to pay works both ways. Like most of us, I do a bit of pro bono work and have a few clients whose fees I haven't raised in forever because I know they are struggling. For the majority, though, I am not one to give away my work. I have professional credentials, years of education and experience, and I give every return the time including research if needed to best serve that client. For this, I should be paid. We don't have many EITC clients, but even though they are low income we don't undercharge. There are risks involved with that category, and the extra due diligence takes time.

I began in a 4 person firm and found auditing incredibly boring. I thought I had made a serious career mistake. Then tax season rolled around... Made my days! Master's in Tax and never looked back.

Selfishness and perceived job protection is a factor. Commonality would reduce budget and staff. States sort of agreed to a common format for certain payroll data, but over time they all added tweaks, in some case, for no apparent reason. Some state programmers are better than others, or they think they are sneaky enough to make more work. What I mean is some cannot seem to trap carriage return characters at the end of a line (yet proclaim their format IS the same as SSA). This is just one of many sad examples. Frustrating at times, but awkwardly, also ensures life long work for those here.

My average is half the national average discussed, might be why I have repeat customers. I also live in a low-cost small town, and have little overhead. My wife's daughter helps me with the paperwork, and that is the extent of my massive staff. I also have write-up work for CPAs steady work in the off-season. Also Tennessee has no State income tax to prepare. However, being long and narrow, we are never far from another of our eight contiguous states, all of which have a state income tax. For me, if I have to prepare a state return, it takes me quite awhile, except for Alabama, where I have several customers. The format of the various states is fascinating - they're all different.

My practice would never withstand that kind of increase, at least until they start to check around. My rates are always based on the client's ability to pay and personal circumstances. My business is not all about money. My business puts the client first. I can do that because of my personal circumstances and the fact that I pay for extras; not for living expenses. Also, I have a deep sense of compassion and helping out the little guy.