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Question about pricing and proseries software

Level 4

Hello, just wanted to get an idea of how much other pros charge customers for tax returns. I acquired a tax office who significantly charged less than competitors ($80 for a single W-2, and $130 for 1099 schedule Cs). I live in northern virginia, and I know prices vary by region, but wanted to get an idea of what others are charging. 

Also, is there a way to see on proseries the number of returns that got refunds vs. the ones that didn't? Instead of manually counting each one? Thank you! 

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5 Replies 5
Level 15
Level 15

Pricing is so subjective, you probably wont find what youre looking for here.   A Sch C can be simple or complex.

You can customize the columns in Homebase to include what yore looking for.  Top menu bar   click Homebase > Column Headings and create whatever scenario youd like.   Homebase has a number count along the left margin, so you dont have to count them manually.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 11

After you add the columns like Just Lisa said, click on the heading to alphabetize them or sort them by amounts. Click once to get them $0 to highest, then click again to reverse the order.

** I'm still a champion... of the world! Even without The Lounge.
Level 15

It really doesn't matter what someone is charging in New York City or Los Angeles.  It's more relevant what others are charging in your area.  But then again, it doesn't really matter what they are charging either if your clients are happy with what you bill for the services that you provide.  Some people shop purely for the lowest price.  Those folks aren't going to be your long term clients.  Building lasting relationships are more important than the price that you charge.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
Level 15

There are two basic methods preparers use:

(1) Form based. $X for each of the forms, some adjusted for numbers. e.g. $Y per W-2.

(2) Hourly Fee, plus basic costs for administration, office, etc.

A super addition to any tax office is a software program called Tax Tools Look at the tabs in the ad for it https://www.taxtools.com/products_tt.aspx    There are many problems it can help solve. One is their Fee Justifier. They have pulled the IRS time estimations from instructions for various forms.  You can see from this the number of hours to learn about, prepare and assemble a specific form. Sch C is 24 minutes to learn about and 1 hr 20 minutes to prepare. All of this is supposing it were the taxpayer doing it. All this time can help you to JUSTIFY that high fee.Capture.JPG

The amount charged can vary greatly between regions where you live, so we can not give you a more specific answer.

Best of luck in your new venture. When I started ($30 for fed and state in 1980), I put in a small increase the first year and lost very few clients. I gradually increased. Others will jack it up a lot and plan on fewer clients with the same gross. This should be done based on how confident you are that you are one of the EXCELLENT preparers in the area. 


ex-AllStar
Level 11

@mvp2885 wrote:

Hello, just wanted to get an idea of how much other pros charge customers for tax returns. I acquired a tax office who significantly charged less than competitors ($80 for a single W-2, and $130 for 1099 schedule Cs). I live in northern virginia, and I know prices vary by region, but wanted to get an idea of what others are charging. 

That's really low for this area.  I'm likely moving from Arlington out to Woodstock, VA later this year so if you keep that pricing model I can send some clients your way!

I charge for time, not forms but there's no way a Sch C would get out the door for less than $200, and usually it's $300+.  I have done a few single W-2 returns for that cheap but they've been kids of existing clients.

Rick