ETax847 Posted January 7, 2015 Report Share Posted January 7, 2015 I was surprised to see the rates being what they were http://blogs.wsj.com/totalreturn/2013/01/24/what-tax-preparers-really-charge/ Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 7, 2015 Report Share Posted January 7, 2015 Your title is technically correct. If I charge those fees, I will be without clients next year. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted January 8, 2015 Report Share Posted January 8, 2015 Some of mine are close; I'm more in line with the less expensive areas though. Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 8, 2015 Report Share Posted January 8, 2015 The comments (click the tab at the top of the article) are interesting. I would also lose most of my clients if I charged like this. $279 for a 1040, Schedule A, and TN-250 won't fly around here, much less the higher fees for other schedules. Not saying HRB doesn't charge like this, but they advertise enough that there is a steady flow of people trying them out every year which makes up for the folks that leave and find the rest of us. Same story, year 21. 4 Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 8, 2015 Report Share Posted January 8, 2015 The comments (click the tab at the top of the article) are interesting. I would also lose most of my clients if I charged like this. $279 for a 1040, Schedule A, and TN-250 won't fly around here, much less the higher fees for other schedules. Not saying HRB doesn't charge like this, but they advertise enough that there is a steady flow of people trying them out every year which makes up for the folks that leave and find the rest of us. Same story, year 21. You are right. HRB advertise aggressively and the difference is that they run their shop as a real business. I on the other hand, have to beg my partner to spend 10% of our income in advertisement and she only agrees to 2%. America runs on perception and believe me... they think the rookie preparing their taxes at HRB knows more than I do. It is amazing how much the president of HRB makes without touching a 1040 form (we are talking million(s)). BUT again, they run a business and I am a love doctor or family counselor with a lot of sympathy when I listen to my client's stories. I agree, that's not a way to run a business. 4 Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 8, 2015 Report Share Posted January 8, 2015 You are right. HRB advertise aggressively and the difference is that they run their shop as a real business. I on the other hand, have to beg my partner to spend 10% of our income in advertisement and she only agrees to 2%. America runs on perception and believe me... they think the rookie preparing their taxes at HRB knows more than I do. It is amazing how much the president of HRB makes without touching a 1040 form (we are talking million(s)). BUT again, they run a business and I am a love doctor or family counselor with a lot of sympathy when I listen to my client's stories. I agree, that's not a way to run a business. But there is great personal satisfaction in being a love doctor and family counselor. And chickens come home to roost eventually if you don't deliver what you promise, as we say around here. 4 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 8, 2015 Report Share Posted January 8, 2015 But there is great personal satisfaction in being a love doctor and family counselor. And chickens come home to roost eventually if you don't deliver what you promise, as we say around here. I did not choose this career for warm fuzzies and personal kudos from my clients. I started my business with a profit and income motive. Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 8, 2015 Report Share Posted January 8, 2015 /s. 4 Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 8, 2015 Report Share Posted January 8, 2015 I did not choose this career for warm fuzzies and personal kudos from my clients. I started my business with a profit and income motive. So say we all. But some of us like warm fuzzies and personal kudos. It's ok if you don't like them, Jack. We don't mind. More for us. 4 Quote Link to comment Share on other sites More sharing options...
easytax Posted January 8, 2015 Report Share Posted January 8, 2015 Unfortunately many potential "clients" see the advertising ---- get a $50 Wal-Mart gift card when we do your taxes --- or see the "come in and receive (pick many things) for using our service OR let us give you a FREE "ACA" info/quote ---- pick whatever you like --- the "people" totally miss the concept that someone (THEM) is paying for these things. I try to do the "right" thing and make sure my clients know up front what we are doing, why and what the cost might be. Unfortunately not all the avertisting "hype" is transparent to those just looking for their next "free" thing. It's almost like "say anything" if it sounds good -- they will come. That is how I see the "big" guys getting away with their higher fees --- the clients don't know (or realize) until they are in the 'bucket" so to speak, so they pay a LOT MORE for maybe less expertise. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 8, 2015 Report Share Posted January 8, 2015 I think I need to raise my rates so we in CT aren't charging less than you all in AL. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted January 8, 2015 Report Share Posted January 8, 2015 I can't believe that Alabama, Mississippi, Tennessee, and Kentucky are at the top of the list. It ain't possible. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 9, 2015 Report Share Posted January 9, 2015 That is how I see the "big" guys getting away with their higher fees --- the clients don't know (or realize) until they are in the 'bucket" so to speak, so they pay a LOT MORE for maybe less expertise. Yes, but if you noticed they do it year after year and because of perception and running a tax prep as a business AND a lot of advertisement, HRB gets repeated and new clients every year. People like to be in the "bucket" in repeated occasions and new ones also want to be there. Have you noticed that some people are just good business people? HRB presidents have been good business people for a lot of years. If I recall correctly, the guy that organized HRB later sold his idea to someone and later he also built Hewitt Jackson or so. What a business concept that will stay for a long time... even after we are gone and our families have nothing to do with Tax Prep. Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 9, 2015 Report Share Posted January 9, 2015 By the way, HRB will become more robust in the years to come because competition is less. Fewer new people start preparing taxes because it is not like before. Before, all you needed was a computer and internet access (not even that if you started in the 80s as I did). In the 80s, you only needed a calculator, a pencil with eraser and a pen. Then you would go to the IRS office and pick up a bunch of pink and blue forms and start preparing a taxes. Oops, sorry... you needed two chairs and a table. These days, you need more than that and new people will have a hard time to venture on their own. So, new comers will have to go and stay a bit longer with HRB before they can open their business. With the extra ACA, new comers are a bit more nervous (even we are), so if you think HRB is becoming weaker, think again. Lets see how much money the president of HRB makes in 2015 for his own and for the company. 1 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 9, 2015 Report Share Posted January 9, 2015 I think you are right. When I started, in the 70s, you got your forms and pubs free from the IRS, used carbon paper to make copies, and kept the rate tables handy at your side. A desk, chairs, a good desk lamp and calculator were all you needed besides tax knowledge! 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted January 9, 2015 Report Share Posted January 9, 2015 Pacun: You stated this: "If I recall correctly, the guy that organized HRB later sold his idea to someone and later he also built Hewitt Jackson or so. What a business concept that will stay for a long time... even after we are gone and our families have nothing to do with Tax Prep." HRB is named after the brothers H & R Blok. Who started HRB in Kansas City in 1955. One was a CPA, and they hit the big time then because of withholding and other changes in the tax code that made many more folks having to file. Notwithstanding, a lot of advertising. Hewitt, who may have worked for HRB, developed Jackson Hewitt into the second largest, and got kicked out because JH wasn't cheating enough, so he left and started Liberty Tax. The garbage rolls downhill. IF, as someone stated, you would not have anymore clients if you charged the WSJ rates? Not very likely. Unless you only have 3 clients. If you have more than 100, its time to start making adjustments to your rates, and in no way shape or form should you go DOWN. IF you are doing a lot of easy returns, then maybe you are constrained in your ability to increase fess, and that is a volume issue at that point. High Volume can equal big $, however, in many cases, we end up a particular price points when we start out and find it difficult to increase fees above that.... But you can. Rich 2 Quote Link to comment Share on other sites More sharing options...
FreedomTaxed Posted January 9, 2015 Report Share Posted January 9, 2015 Jackson Hewitt's starting to worry me. We might have to change our competitive direction slightly. Among other things, JH is now offering a refund anticipation loan (as a $200 advance, minimum refund of $1000 required). We can't afford to take that sort of risk, but still.... Quote Link to comment Share on other sites More sharing options...
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