You bought a tax practice! But they charge less than you do. Now what?
By Ed Mendlowitz
The CPA Trendlines Practice Doctor
QUESTION: I bought a tax return practice in December from a person who 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.
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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.