How Much Do I Charge as a New Tax Preparer?

By Tim Frye

Preparing someone’s taxes can be a very personal and intimated experience for you and your client, considering that by the end of the tax interview you will know your their most private financial details. So when setting your prices the process can be quite subjective, because every tax interview is different. Here are a few different ways to determine you’re billing methods.

Charge by Time

Many tax preparers will charge according to how long it takes them to complete the client’s return. This may come into play if you are doing a return that seemed pretty simple on its face, but maybe the client had plenty of questions pertaining to their taxes that kept the process lengthy.

In this case the invoice says one thing, but you feel that your time is worth more than that so you charge accordingly.

Charge by the Form

Another billing method is the one in which you charge according to how many different forms are being added on to the 1040. Say your client has a side business, they will need a schedule C, and they also had business miles they needed to add as a business expense. So now you’re also incorporating a form 2106 for vehicle expenses. It is fine to charge according to the number of forms you have to use, simply explain to your client that on your end you are charged by the tax program for each additional form being employed, so that you need to reciprocate that favor and do the same on the client’s end of things.

Be Assertive

It is essential to assert yourself when you are billing the client. Be confident and not timorous, and you will reach a favorable outcome and get the price you feel represents your real value. If you are tentative throughout the billing process the client is sure to break you down and get a larger discount out of you. Charge your client the fair amount for your services, and not only will you watch your self-esteem climb, but you will also gain the respect of your client by not folding under pressure.

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