About FeesUnfortunately tax preparation and accounting services are often viewed as nothing more than a necessary nuisance. This is a mistake. Good tax accounting will pay for itself many times over, both in monetary savings and peace of mind.
There are a variety of billing methods used by tax accountants. Many charge by the hour, while others will bid a job for a fixed fee. Whatever the approach, it usually comes down to how much time a project will take and what is a fair amount of compensation. We utilize different methods of billing for different services.
For income tax preparation we charge for each form making up a tax return. The price per form varies depending on the amount of time involved to prepare it. Our minimum charge is $200 and fees go up from there if more forms are needed. For example, we charge $125 for Form 1040. A Schedule A (itemized deductions) is $45, Schedule B (interest and dividend income) averages $25, etc. Some forms, such as self-employment and rental properties, may have a range of cost depending on the time it takes to complete them. This is the most common billing method for tax returns in use today.
Our "by the form" billing is based upon a $175 hourly rate. A Form 1040 costs $125 because an average 1040, without additional schedules, takes approximately 2/3rds of an hour to complete. Additional forms are an additional fee, although some standard forms are included in the base fee. The actual fee could be more if the return is more complicated than average and requires more hours. It takes more time each year to prepare a tax return due to the constant changes implemented by Congress. Rarely, if ever, do tax filings become simpler.
Bookkeeping services are billed between $55 and $75 per hour, depending on the type of work involved. Most of our business clients prefer a "fixed fee" for monthly work. We are happy to bid a fixed monthly fee with the understanding it will be reviewed annually and the fee revised if necessary.
Fixed fee accounts include most routine bookkeeping functions, but do not include work which exceeds the norm. For example, if a client requests formal financial statements for a loan application, we will charge for the additional time it takes to do that particular project.
Payroll services are billed according to the number of employees and the frequency of processing. We offer a variety of different payroll options, including in-house processing, direct deposit and outsourcing. We also tell our payroll clients there are other options, such as independent payroll services like Paychex and ADP.
Prospective clients should never base their choice of accountants solely on the hourly rate. Sometimes the highest hourly rate will result in the lowest overall fee. The end result is dependent on the knowledge, speed and accuracy of the accountant. Some accountants may charge a higher hourly rate because they are able to do the work faster, while others charge lower hourly rates because they need to work slower to produce the same quality results
About Fees