How to make a money merging in low-priced work.
QUESTION: I bought a tax return practice in December from a person that was charging $180 per hour. My rate is $300 per hour so I did not make money and I would like to know what I could do to raise fees so I don’t continue to lose on it.
Here at CPA Trendlines, 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. We’re happy to have him at CPA Trendlines. Send your questions for Ed here, or chime in with Comments below.
– Rick Telberg
President / CEO
ANSWER: After a long discussion, it appears that he bought a good practice with good fees charged for the returns. His problem is that he has no employees and did all the work himself – about 750 tax returns; and was totally overwhelmed with non-stop work.