HV Ken Posted April 6, 2014 Report Share Posted April 6, 2014 New client. AGI over $200k. Taxpayer and spouse both have W-2. Itemized Deductions. 2 states, including resident credit. Previous preparer charged $110 for this return. We will be close to triple that. Holy sticker shock, batman! Quote Link to comment Share on other sites More sharing options...
jshtax Posted April 6, 2014 Report Share Posted April 6, 2014 I would be pushing $1,000 but keep in mind we do not charge for audit representation nor do we charge an hourly rate during the year if a client wants to come meet with us about anything. Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 6, 2014 Report Share Posted April 6, 2014 On a few occasions, I've been able to point out to a new client that their last preparer's fees were a huge bargain and so they benefitted from that while it was available, but now it's time to step up and pay the going rate. Some people don't accept that simple truth, but if they don't then it's my contention they simply aren't fair minded (or else they're financially ignorant), and either way I don't need them taking up my time. The only alternative is to cave in and let them ride roughshod over me, which I would resent as long as I did their work. It is important to let them know in advance, so they aren't shocked by the bill. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted April 6, 2014 Report Share Posted April 6, 2014 If it's 2 W-2s...an uncomplicated A..,and 2 straightforward states...I'd charge that...especially if the client wasn't a PITA. I factor other things...like...drips and drabs...200 questions...and the assumption of getting a refund. My today rant is..."My friend recommended you. You got him $8000 and charged him $125. Why do I only get $2500 and I have to pay you $150?" Oh yes....2 PhDs at Princeton! 5 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 6, 2014 Report Share Posted April 6, 2014 Too many different factors to really compare, but hey, think about this Ken, he's not at that preparer's office now. He's at yours, so it seems the client wants what you have to offer. That comes with your price, of course. But just remember, YOU ARE WORTH IT. If you know your price is fair, don't let anyone make you feel embarrassed about it. 2 Quote Link to comment Share on other sites More sharing options...
HV Ken Posted April 6, 2014 Author Report Share Posted April 6, 2014 I am not embarrassed, KC. Really just frustrated when other preparers undervalue their services and the market. It just creates a conversation with that client that we don't have time for right now! Quote Link to comment Share on other sites More sharing options...
jshtax Posted April 6, 2014 Report Share Posted April 6, 2014 Just tell them these are my fees take them or leave them. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted April 6, 2014 Report Share Posted April 6, 2014 I am not embarrassed, KC. Really just frustrated when other preparers undervalue their services and the market. It just creates a conversation with that client that we don't have time for right now! This is how I look at it: If something takes me 15 minutes to do...without aggravation....and without overhead...it's golden. And everyone's happy. If I had to pay rent, electric, sit with the person....I'd feel a lot differently. 2 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 7, 2014 Report Share Posted April 7, 2014 I especially like the ones that come to me from HRB or Liberty and complain about my fees when they paid the other guys twice as much. Go figure? I am not the cheapest in our market area nor am I even close to the most expense. I know the time and effort that I put into completing their returns and have not had major problems or made any major mistakes. A few small ones here and there that were not really significant but nonetheless a mistake. If I was perfect then I wouldn't be human and I feel I charge an adequate fee for the services that I provide. So, if they don't like it they can indeed go elsewhere. The ones who do usually come back. 4 Quote Link to comment Share on other sites More sharing options...
HV Ken Posted April 7, 2014 Author Report Share Posted April 7, 2014 This is how I look at it: If something takes me 15 minutes to do...without aggravation....and without overhead...it's golden. And everyone's happy. If I had to pay rent, electric, sit with the person....I'd feel a lot differently. That is an impressive feat to gather the information, type it in, check it, print it, assemble it, deliver it, e-file it, follow up on the e-file in only 15 minutes. I cannot do that even if it were just a W-2! 4 Quote Link to comment Share on other sites More sharing options...
SFA Posted April 7, 2014 Report Share Posted April 7, 2014 This is how I look at it: If something takes me 15 minutes to do...without aggravation....and without overhead...it's golden. And everyone's happy. If I had to pay rent, electric, sit with the person....I'd feel a lot differently. Speaking of rent. My landlord has not renewed my office lease. I must find another place and be completely out by May 31! Everything I am looking at will require a build-out of some sort, plus the base rents are higher. Argh! So, next year, I will be increasing my fees, but of course, it will probably all go to overhead. At first I was optimistic about the move, but now that I am tired and can't find the right place, I'm just frustrated, and dreading slamming and ram-jamming into being out AND in, within 45 days after the 15th. I just want to head for the beach and read a good book. 4 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 7, 2014 Report Share Posted April 7, 2014 Speaking of rent. My landlord has not renewed my office lease. I must find another place and be completely out by May 31! Everything I am looking at will require a build-out of some sort, plus the base rents are higher. Argh! So, next year, I will be increasing my fees, but of course, it will probably all go to overhead. At first I was optimistic about the move, but now that I am tired and can't find the right place, I'm just frustrated, and dreading slamming and ram-jamming into being out AND in, within 45 days after the 15th. I just want to head for the beach and read a good book. How about adding an addition to your home for your office. I currently work from home, and will never change that. I may take the garage and rework it, but won't ever have a separate office in a different location. 3 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted April 7, 2014 Report Share Posted April 7, 2014 That is an impressive feat to gather the information, type it in, check it, print it, assemble it, deliver it, e-file it, follow up on the e-file in only 15 minutes. I cannot do that even if it were just a W-2! Yes...but I don't do that. Mine are on line...I send them a PDF file. My expense..maybe printing 2 sheets of paper. And if the basic data is there from last year...maybe 5 minutes to enter the new wages. But...to reiterate ....this would be a simple A...with a cut/dry second state....done on line return. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 7, 2014 Report Share Posted April 7, 2014 How about adding an addition to your home for your office. I currently work from home, and will never change that. I may take the garage and rework it, but won't ever have a separate office in a different location. As Jack knows, I did the addition to the home last year and have never looked back or regretted it. Planned correctly, it can be a very attractive addition to where you live and will be adaptable to anyone else's needs. In other words, it does not look like an office until you get inside. I added on to the existing office which was actually an existing bedroom. The zoning commission was very cooperative. My office is designed so that it can be used by anyone for anything. Instead of paying rent, I am building equity and have OIH deductions. 3 Quote Link to comment Share on other sites More sharing options...
SFA Posted April 7, 2014 Report Share Posted April 7, 2014 How about adding an addition to your home for your office. I currently work from home, and will never change that. I may take the garage and rework it, but won't ever have a separate office in a different location. I live out in the country and want to keep my clients separate from my personal life. I don't even have a Facebook page for that reason. I also have seven employees, and do not socialize with them outside of the office either. I do very little office work from home, except logging-in to my computer at work when necessary. When I first started, I worked from home while my kids were little. My husband was very happy when I moved the business out and he could just relax without having the extra traffic. It works for us. Quote Link to comment Share on other sites More sharing options...
pikester1967 Posted April 7, 2014 Report Share Posted April 7, 2014 How about adding an addition to your home for your office. I currently work from home, and will never change that. I may take the garage and rework it, but won't ever have a separate office in a different location. Speaking of home office and landlord, had to share this one! My landlord did a small renovation on the 8 by 8 backporch to get me up and running this season. This summer he's adding insulation, drywall, and new paneling while replacing windows etc, my cost $400.00. I miss the walk-in traffic from Downtown Sidney and of course my favorite restaurant of all times. But man I don't miss the additional overhead. Once I set my rate $xx.xx for a federal, state and city return with 2 form w2, additional forms and schedules extra; Things finally came into place for me and seem to of worked out fine. Anything after that, my new nickname is "Pikester the Cricket" Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted April 7, 2014 Report Share Posted April 7, 2014 I live out in the country and want to keep my clients separate from my personal life. I don't even have a Facebook page for that reason. I also have seven employees, and do not socialize with them outside of the office either. I do very little office work from home, except logging-in to my computer at work when necessary. When I first started, I worked from home while my kids were little. My husband was very happy when I moved the business out and he could just relax without having the extra traffic. It works for us. Is buying real estate...and you can be your own landlord an option? Quote Link to comment Share on other sites More sharing options...
SFA Posted April 7, 2014 Report Share Posted April 7, 2014 Is buying real estate...and you can be your own landlord an option? Yes. Everything is on the table. It may take two moves. One temporary spot, then a second permanent location. I even thought of merging with another practice in my area. We talked, but are each too busy to figure anything out. Will keep you posted . . . Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 7, 2014 Report Share Posted April 7, 2014 usually when the previous tax preparer has a low fee, there is a reason - and that usually means you get to do some amending. 2 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted April 7, 2014 Report Share Posted April 7, 2014 usually when the previous tax preparer has a low fee, there is a reason - and that usually means you get to do some amending. Usually when there's a high fee on anything but a complicated return...the clients been taken for a ride :) Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 7, 2014 Report Share Posted April 7, 2014 I live out in the country and want to keep my clients separate from my personal life. I don't even have a Facebook page for that reason. I also have seven employees, and do not socialize with them outside of the office either. I do very little office work from home, except logging-in to my computer at work when necessary. When I first started, I worked from home while my kids were little. My husband was very happy when I moved the business out and he could just relax without having the extra traffic. It works for us. You can make the addition so it is totally isolated from the rest of your home (except for one door to get in from you house.) Then you have no one to deal with as a landlord/tenant but yourself. I cannot imagine going to a separate office. I can achieve the total isolation I described by converting my attached 2 1/2 car garage. Just my experience... Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 7, 2014 Report Share Posted April 7, 2014 There are so many variables in the pricing that you give to a client. It is really hard to know if $110 is fair or if 3X that amount is fair. I have clients who bitch about my fees, and I just smile. If they think it is too high, they can go elsewhere. I have clients who tell me they paid a lot more and got a lot less service in the past. I have clients who don't even know what they paid before me, and don't know what I charged them last year, or this year for that matter. Every situation is different. As for being upset at low fees and preparers who charge too little, you would really have to know why they are doing it. When I first started, I really went out cheap, trying to build a practice. I don't do that anymore, but if I moved into a new area, I might just do it again to "buy" clients so I could start building a client list. Tom Hollister, CA 2 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted April 7, 2014 Report Share Posted April 7, 2014 Keep those pesky clients away from MY house unless I invite them for a drink and a swim.... And I can't do any work from the house, I would rather goof off doing something else. Seems like we have the same problem, I am about to merge my practice after tax season and need to find room for 3 more people..... Rich Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 7, 2014 Report Share Posted April 7, 2014 Or, took lots of time! Quote Link to comment Share on other sites More sharing options...
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