Big Mistakes Tax Pros Make – Not increasing your fees
It boggles my mind that this is something that needs to be said to Tax Pros, but you should be increasing your fees (on all of your services) every year at least 3-5%.
Some tax practitioners are still using the same fee structure for the last 10-15 years. Why? I don’t know. It’s not like your costs don’t increase every year!
Your employees want raises. That wonderful tax program you use increases every year. CPE and the other tools and resources you use increase every year. Why don’t you increase your fees every year?
You had the best excuse in the world to increase your fees 5-10%. What is that? Inflation in 2021 and 2022 was pretty crazy! Please make sure you take a look at all of your fees and let your staff (and clients) know what the new fees will be.
Of course, when I say increase your fees, I am talking about raising your base rates as well as the rates you charge to your existing clients. So, if you were charging a client $200 for their tax return last year, then the fee for this coming year should be between $210-220. But your base fee should increase to $250 if you were previously charging $200. This now becomes the rate for new clients who walk in the door.
Trust me, you will thank me later when your bank account is much bigger than it used to be.
Remember, now is the time to get started learning about adding Tax Resolution representation to your list of services. It is a natural fit to the work you already do if you are a tax preparer.
Dan Henn, CPA, CTR™, NTPI Fellow
Tax Pro Academy, LLC