tax season 2018: average fees set for 7% increases
but fees for entity returns are down. why?
fee
tax preparation fees and services
the national trends and averages
by 卡塔尔世界杯常规比赛时间 research
while tax professionals taking a well-deserved break this summer, they are also carefully assessing how well – or poorly – they fared in tax season 2015 and they are beginning to lay plans for tax season 2016. chief among their concerns will, no doubt, be a thorough review of their mix of services and fees.
fortunately, 卡塔尔世界杯常规比赛时间 has compiled authoritative data in an easy-to-use set of charts, graphs and infographics to guide the strategizing for 2016.
in this report, 卡塔尔世界杯常规比赛时间 reveals:
- the average time it takes an amateur do-it-yourselfer to do a 1040 – useful information in understanding and communicating to clients the true value of a professional.
- how many tax professionals give away over $100 per client in free consultations – and how competitive the market may be for practitioners.
- prices by type of form: itemized 1040; state; schedule c’s; 940s; 1065s; 1120ss.
- prices by region: west, midwest, northeast and south.
- how many preparers charge to file an extension and how much they charge.
- trends in 1040 business.
- practitioners’ age ranges and years in business.
- the characteristics of the communities in which they operate.
tax preparation fees: the national averages [infographic]
new data from 卡塔尔世界杯常规比赛时间 sources reveals key competitive
comparisons. read more →
why the average fee doesn’t matter
not all data is relevant.
by ed mendlowitz
the practice doctor
question: what is the average fee that your firm charges for a review? assume the company is approximately $10 million in sales and $3 million in assets.
answer: what is the average size suit men wear? this might be nice to know but it is not relevant to any specific situation. read more →
how to tell a client how the fee was set
by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor
question: i performed some additional services for a client and gave her a bill that she questioned and wanted to know how much time i had spent. i billed more than the time charges, but this client never gets time bills – everything i do is on a fixed fee so i never account for my time with her. what should i say now?
more practice doctor q&a: 18 ways to blow a partnership opportunity | when experience doesn’t add up | 8 times when hourly billing trumps value pricing | 6 simple steps to impress a prospect | making meetings more productive | 5 time management tips for an overworked accountant | running an accounting business | 14 ways to switch to value pricing | pricing, billing, costing: don’t blame clients
response: if a client is on a strict time basis, they are entitled to a breakdown of the hours and person performing the services.
otherwise, when clients ask me how i arrived at a bill i tell them something similar to this:
8 times when hourly billing trumps value pricing
and when it doesn’t.
by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor
question: i am trying to switching to value pricing and am having trouble getting completely away from time-based billing in certain situations.
response: value pricing is a great method and concept. i suggest reading, and thoroughly understanding ron baker’s “implementing value pricing: a radical business model for professional firms.” i like what he suggests, have used some of his techniques even before he started writing and speaking about them, and recommend it in many situations.
client’s difficult daughter balks at bill
do you talk to the dad?
by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor
question: i have a very good client who pays us to prepare his daughter’s tax return. the daughter was going through a divorce and asked us to assist her and her attorney and she said she would pay us herself, and we shouldn’t ask her father to pay us and she also asked us not to tell her father what was going on. we did a lot of work and because of what we did she got a much better settlement than if we did not help her. additionally a lot of what we did was rush on-demand work and some of it was quite difficult. also, she was not the most pleasant to deal with on many occasions. read more →
quick tax season billing tip
by ed mendlowitz
when you perform additional services on a tax return that you will be charging for, list it as a separate item along with the fee for that service. this way the client will know that something extra was done and the charge.
is the profit squeeze over?
new trends emerge in net profit margins and accounts receivable.
after years of intensifying and debilitating pressure on bottom lines, profits at tax, accounting and bookkeeping firms appear to be hitting 10-year highs, according to information obtained by 卡塔尔世界杯常规比赛时间 from sageworks, the specialist in tracking private-company financials. read more →
trickle-down audit economics: cpas cut fees to clients’ suppliers
economies of scale found in supply chain.
audit fees can be costly for many public and private companies, but an accounting professor has discovered a way they save some money when going through the process.
read more →
suing a client
by ed mendlowitz
“tax season opportunity guide“
question: a former client owes me a lot of money and will not pay or even discuss a settlement. i want to sue him. what can you tell me about this?
response: i don’t know the details so cannot address your specific situation. however, i have some comments about suing that i would like to share with you. read more →
nine value-adds to command a higher fee
by sandi smith, cpa
accountant’s accelerator
want to charge more for your services?
one way is to offer clients more value. your fees and your value to the client should go hand in hand.
more for soloists and small firms: accountants, do you know your opportunity number? • five ideas to reduce client price-sensitivity • rise to the top with a fresh elevator speech • four ways to practice entrepreneurial perseverance • 5 mistakes to avoid when seeking new clients • the top 12 business card blunders accountants make • seven tips to keep the clients you have • how to attract clients like a magnet • eleven easy ways to deliver more value to clients •
here are nine ideas to increase your value to your clients:
when not to offer a free initial consultation
are we giving it away too easily?
ed mendlowitz answers some of the toughest questions practitioners can throw at him. he’s the right one to ask. after more than 40 years in the business – building his own practice, running the firm, and eventually selling it to a major regional firm, withumsmith+brown, where he remains a senior partner and consultant to professional services clients – he has the answers.
related: measuring growth in yourself, staff and partners | what do you think you’re doing? | can you teach judgment? | clients’ calls at home | what you need to know before expanding into business valuation | asking an attorney for a referral fee | are partner retreats really worth the cost? | audit reports without doing the work? | should i really spend the time making checklists? | what’s a tax practice worth today? |
question: i was wondering what your thought is regarding initial consultation fees. currently, i do not charge a fee for an initial consultation, and it seems that most cpas do not charge either (at least not the sole-practitioners that i know). would the fee deter new clients or actually weed out the ones who are most likely not going to become clients anyway? if a fee is charged, then how much, and how long should the consultation last? should the fee be applied to any work that i am eventually engaged for?
it seems to be a toss-up between two different philosophies:
- people value something more when they pay for it
- you don’t want to create any barriers to entry
i am eager to hear your thoughts. read more →