fees

Quoting Tax Resolution Fees

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5 scenarios with fee quotation breakdowns.

By Jassen Bowman
Tax Resolution Systems

One of the most common questions I get from practitioners adding tax resolution services to their service offerings has to do with fees. Many practitioners see the benefit of offering flat-fee service options, while others choose to stick with their existing hourly fee model.

MORE ON TAX RESOLUTION: Basics of Tax Season Work Flow | Overcome Objections in 7 Steps | How to Reactivate Lost Clients | Don’t Ignore Your Existing Leads | Some Office Nuts and Bolts | The Importance of Goals and Affirmations | Market to Your Ideal Clients
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These are some example of how I quote fees when running a high-volume tax resolution practice. These scenarios do not represent any one particular client I’ve had. Rather, they each represent dozens of similar situations I’ve worked on. These scenarios are the norm if you’re focusing on 941 representation. For completeness, I’ve also added a 1040 scenario as an example.
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12 Pricing Factors Beyond Cost

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Man with net chasing winged moneyCost-plus is a starting point, not the end point.

By August J. Aquila
Price It Right

Accountants face only two major restrictions in determining their fees – the restriction against contingency fees under certain circumstances and the taking of commissions or referral fees.

MORE: Ethical Issues in Pricing | Applying Cobb’s Value Curve to Your Firm | The Four Types of Competition | Marketing and the 5 P’s | Why Choose a Marketplace Orientation? | Why Value Pricing? | Solving Underperforming or Dysfunctional Partners | The 3 Types of Partners You Need
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We have also seen that for the most part, accountants bill their time based on a cost-plus method.
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SURVEY RESULTS: Client Retention Drives Today’s Pricing Strategies

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Maximizing revenue comes second. Profits, third.

By Rick Telberg
CPA Trendlines Research

The CPA Trendlines Pricing Strategy Study
Join the survey. Get the details.

Raising rates is risky. But so is not raising rates. You have to raise them right and at the right time. And not on a willy-nilly whim. You need to think about it. You need a rationale.

In search of reasonable rationales—rationales that work—CPA Trendlines is asking practitioners for the rationale behind their pricing strategy. And they are being generous in their response. Most say that strategies were lacking or could be improved. READ MORE →

CPA Firms Hit the Brakes on Increases in Billing Rates

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CPA firm price index through August 2015
CPA firm price index through August 2015

The good news? A lot less volatility.

By CPA Trendlines

After a period of rapid price increases, CPA firms appear to be backing off on rate hikes.

The price index for U.S. CPA firms reached 117.2 in August, representing a 15.1 percent price increase since the January 2005 baseline. This is the second time this year the index has reached this mark, with the other in March, and the highest point except for February’s 117.5. It denotes increases of 0.6 percent for the month and 0.3 percent for the year.

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How Much Overhead Is Too Much?

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Plus a tip for increasing revenue if needed.

By Ed Mendlowitz

QUESTION: Are there any rules of thumb for a CPA firm’s overhead and salary costs?

MORE PRACTICE DOCTOR Q&A: When Partners Stop Growing | Clear Billing Procedures Make Collecting Easier | Before You Even Think about Selling Your Practice | Are You Managing Knowledge or Wasting It? | 7 Ways to Lose a Client’s Trust | 12 Must-Knows for Niche Markets | When Fees Don’t Keep Up With Cost Increases | When Is It Time to Merge? | 18 Ways to Blow a Partnership Opportunity | 6 Ways to Know What You Don’t Know | 6 Simple Steps to Impress a Prospect |Tax Return Reviewer Ticking and Tying |23 Reasons Clients Really Need YOU for Taxes |Complaining Client? No Wonder! | Running an Accounting Business

ANSWER: The Rosenberg Survey has excellent metrics and is highly recommended. On a less scientific basis you can use as a general rule of thumb 1/3 for salaries, 1/3 overhead, 1/3 partners salary.

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Market Pushes Back at CPA Fee Increases

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Tax prep, bookkeeping level off.

CPA firm pricing index, July 2015
CPA firm pricing index

By CPA Trendlines Research

After a year of demonstrable strength, CPA firms’ pricing power appears to be weakening – even if ever so slightly – as the market shows new resistance to rate increases.
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Tax Leads Accounting Industry in Price Hikes

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PPIMay15thumbnailAccounting industry shows healthier pricing power than most other industries — and its own clients.

NEXT QUESTION: Which pricing strategies are best for today’s market? Join the survey; get the answers.

By Rick Telberg
CPA Trendlines Research

Following hefty hikes in billing rates during tax season, the tax, accounting and bookkeeping industry is pushing through price increases three times faster than the rest of the nation’s economy, according to a new CPA Trendlines study.

MORE: Fees and Pricing Reports for PRO Members Only
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While most other industries — and, by implication, most of the profession’s clients — are barely managing to maintain price levels, the accounting industry is forging ahead aggressively. The industry’s powerful position in pricing suggests huge demand for the complex services that only accountants can provide. And many practitioners appear to be taking every opportunity possible. To be sure, costs are rising as well, with talent, technology and retirements putting pressure on many firms.

In this report, CPA Trendlines analyzes pricing trends and billing rates for:

  • CPA firm services in general,
  • Auditing and assurance services in particular,
  • Tax preparation and planning, and
  • Bookkeeping and compilations

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