Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 Many of you on this board are very analytical. One assigns a score to each client. What would you say is the average turnover rate in your practice? Do you know the reason why the client left your practice? Last night I looked at my clients who never responded to my reminder's and i have 5 of them. I have a few that went with the taxpreparer their new spouse was using. And then I have 1 who thought $130 for a Sch A, D return was too much! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 10, 2013 Report Share Posted May 10, 2013 I lost one this season. She was a very needy client (for instance, wanting legal advice because I'm cheaper than her lawyer!) taking time and depressing me with her complaints about her health, divorce, children, etc, during my already stressful season. I raised her price each year. She moved to a southern state, but continued to mail me her materials. Finally, this year, she called to tell me she'd found a less expensive preparer local to her and thanked me for all my years of help and offered to return if she could afford me again and to send her boyfriend's more complex tax situation to me and that type of thing. I wished her well. I do lose clients to death some years and, as you mentioned, to marriage if the spouse has a stronger relationship to another preparer (I usually lose the female clients, but the males bring in their new wives. Are we still a male-dominated society?). But families continue to send me more relatives, friends, neighbors, and coworkers. So, I have a net increase every year. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted May 10, 2013 Report Share Posted May 10, 2013 Very little turnover here.; other than due to death, divorce or no longer needing to file. For every one that drops off, at least two new come from referrals. I never advertise. My clients take my cards and pass them around. Oh, and I fired one last year who came from the same mold as the client that Lion described. The best thing I ever did. Her sisters and children stayed with me which was a big surprise. Quote Link to comment Share on other sites More sharing options...
rfassett Posted May 10, 2013 Report Share Posted May 10, 2013 I have not had the chance to look at this years numbers too closely yet, but when doing the extensions, I believe I counted 10 or 12 clients that I did not hear from. Those amounted to approximately $2,500 in billings. I know that I picked up at least 20 more that represented about $7,500 in billings. Fair trade off in my book. Some fall off every year and some new ones come. My average turnover is way, way below the national average that some places suggest. So far below, actually, I am off their chart. My practice is pretty stable. In the interest of full discloser, I raise my rates for tax prep every year by a minimum of 5% and I also raise my minimum fee every year. Next year's minimum will be in the $180 to $190 range. When you start believing in yourself and your skills and believe that you should be compensated according, you will find that the market will agree with you. Our clients want us to be successful so they can tell all of their friends "we use xxxxxxxx to do our taxes". It is like a badge of honor they wear. Oh and I always like to mention when I discuss these things, I live and work in Podunk USA - town size of about 5,500 with no shortage of tax prep firms. If I can do it here, you can do it anywhere. 1 Quote Link to comment Share on other sites More sharing options...
ADGFINANCIAL Posted May 10, 2013 Report Share Posted May 10, 2013 We do about 500 - 600 tax returns a year. We lose about 50 clients a season. Of that number we fire about 6 each year and rest just don't come back. This year we added 47 new clients. We have a active marketing program to find new clients. I fire the one that I don't like working with or I don't like the numbers. We ended 4/15 with 477 done and since have another 10 so far. It use to bother me when a client left but no longer. It's just part of life. They move, died, or think they can do it themselves. August @ ADG Financial.com Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 Lion you are absolutely correct! I too lose more female clients due to marriage. During off season I will get e-mails for 'advice" from clients on subjects that I know they should be discussing with an attorney. I put a disqalified in all my e-mails. But for some reason ($$) they want you to answer their questions and some get irritated if they don't hear what they want! I do give my existing client a 10% discount if they bring me a new client. That has worked well over the years. I do NOT take competitor's coupons. Every year I get a few who will show up with a $50 coupon from HRB or $20 off from JH! I am not the local McDonald that accepts Wendy's coupons! This year I did not raise my rates for anyone. There was enough confusion with the delayed filing and i just did not want to add another bitterness to the mix. Next year i may have to go up a bit! Quote Link to comment Share on other sites More sharing options...
michaelmars Posted May 10, 2013 Report Share Posted May 10, 2013 This year I did not raise my rates for anyone. There was enough confusion with the delayed filing and i just did not want to add another bitterness to the mix. Next year i may have to go up a bit! This was the perfect year to raise prices since it was so confusing and so much extra work had to be done. I had no complaints from anyone. Clients understood that each return needed extra work this year to make sure it was correct [due to fiscal cliff stuff not due to atx] 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 10, 2013 Report Share Posted May 10, 2013 A missed opportunity to raise prices is lost forever. It is much more difficult to do a "catch-up" increase than to raise fees incrementally. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted May 10, 2013 Report Share Posted May 10, 2013 I also add 3-5% cola each year until I think the fees are just too high for what is required. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 I guess I am a softy! I just could not add to their misery this year. Hopefully next year my clients will be more charitable! Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 10, 2013 Report Share Posted May 10, 2013 Did your clients have any compassion regarding YOUR misery this year, or did they just want their return finished as soon as possible? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted May 10, 2013 Report Share Posted May 10, 2013 NEXT year is going to be worse with obamacare and the tax on passive income. No one is going to be happy with their returns for 2013. 2 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 I have to say that due to the widespread news coverage this year most of my clients were quite understanding when they called early January and I had to give them the news. My biggest problem came from folks who typically get EITC regarding the delay and some taxpayers whose refunds were delayed due to 8863. I can understand, the credit card bills for Christmas presents were piling up! Overall I can say that most of the objections were managable! Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted May 10, 2013 Report Share Posted May 10, 2013 Did your clients have any compassion regarding YOUR misery this year, or did they just want their return finished as soon as possible? 90% of the clients at the firm could care less about what caused the delays. 90% of my personal new clients could care less about what caused the delays. 100% of my personal returning clients were very understanding about what caused the delays. This year, gained 65 new, lost 10. Last year, gained 15 new, lost 3. 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted May 10, 2013 Report Share Posted May 10, 2013 I hardly ever lose anyone. I could charge more because no one ever complains about a bill. That is one indication that the bills aren't high enough. I picked up some new clients this year that were all very pleased with the service they received and promised to send referrals. It is nice because much of my client base came from the firm I once worked for and those clients have found me over the years, but they and I are all getting older, so it's nice that some of the new clients are of a younger set. I had only one tax prep client not come back this year, and I suspected she was a one time return from the get go. She came because of installation of a $30K geothermal heat system, the kind that required excavating a significant part of her back yard. She'd previously called HRB and was told that it wasn't eligible for any credit at all. She'd actually done all the research and had the exact model printed out from the websites to match her original invoice before she ever came in. She made my job on that return an easy one. I suspect she went back to preparing the return herself, but she was also happy with my services and may return in future when the returns become more complex with the changes that are coming. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 I am ok with one shot clients as long as they are upfront and i know why they want my services. I had a similar incident this year with the energy credits. The taxpayer self prepared the return and COMPLETELY ignored the fact that he had claimed energy credits in prior years. When the refund was nowhere to be seen he contacted IRS and was told the reason. I doubt if I will see him next year but i could be wrong! I am getting the sense from reading all the posts that if the client does not complain about your fees you are way too low! Have to keep that in mind! Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted May 10, 2013 Report Share Posted May 10, 2013 Charging fees that are too low by the standards listed is another cause of not enough margin to keep up with technology changes. Quote Link to comment Share on other sites More sharing options...
Catherine Posted May 10, 2013 Report Share Posted May 10, 2013 This year I had five clients either not return or (in one case) get fired. That's out of about 150 total. One was a brand-new client whom I fired before I started on her return! Another retired to Florida, and one was a guy whose price I'd hiked to get rid of him (phew!). And a young woman whose return I did when she was in college as there were multiple state returns required and other complications; she's now in CA working in only one place. Nine new clients, if I recall correctly. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 Count your blessing. Fired before you did the return. I should have fired one of my clients this year. She was on extension becaue hubby was out with the boys for 2 weeks. Just finished her return on Monday and e-filed. Calls me up this afternoon she found a 1099-R with a code 1 tucked in her bill box. Can she just drop it off at my office! Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 10, 2013 Report Share Posted May 10, 2013 Sounds like an amended return and another fee to me. 1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 It is an amended return allright but as for another fee that will be an issue with this client. I do her entire family including her parents and brothers. Don't want to burn any bridges if she really throws a fit! Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted May 10, 2013 Report Share Posted May 10, 2013 Hmmm...I lose a lot because most of my clients are foreign, and go home. But I get more referrals than ones I lose. This year I limited new clients based on my laziness. I just didn't want to get involved in ones that required research (too time consuming for my low fees). I fired a couple. One guy asked me if I was still in the same place (my apt)...and I told him "yes"...but if you come I won't let you in. 1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 10, 2013 Report Share Posted May 10, 2013 Watch out for that client. He may hang out with your doorman! Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted May 11, 2013 Report Share Posted May 11, 2013 Count your blessing. Fired before you did the return. I should have fired one of my clients this year. She was on extension becaue hubby was out with the boys for 2 weeks. Just finished her return on Monday and e-filed. Calls me up this afternoon she found a 1099-R with a code 1 tucked in her bill box. Can she just drop it off at my office! Larger than normal amend fees for that client. I am not afraid to charge clients like that a high amount for amending. Motivates them to be thorough (how could they forget taking the money out) when they collect their information. I charge extra for babysitting grown clients. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 11, 2013 Report Share Posted May 11, 2013 Update. I was not home last evening, but my client stopped by with an envelope with the 1099-R and a $20 bill and a sticky note. Hope this covers your trouble sorry! Now what can I say?? Quote Link to comment Share on other sites More sharing options...
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