If you are comfortable sharing - wondering what your pricing is for t1 2023 -
simple (1 or 2 slips), avg. return, self employed
GTA
thx
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I am charging $150 for returns where everything can be downloaded from the CRA website, $200 for returns with a few slips (medical/donations/missed Tslips etc) that can not be downloaded from the CRA website but no special forms. I then charge $100 per special item (T776, T2125, T1135, Sch 3 if I have to chase costs, if more than 40 slips to be typed in not from CRA download, if I have to scan in the documents (most use portal), if they want to sit there while I type stuff in and ask me questions). I do mostly more complicated stuff (including full US returns) and I have more work than I can deal with so those that object to my fees get directed to wealthsimple to do it themselves for free. My average fee per person last year was in the $265 range before I raised my prices for 2023. I was curious so I kept track. I expect with the price increase it will be closer to $315 this year per person.
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What about couples and family returns? Do you offer any discount for that? Thanks!
thanks Laurie for your pricing. that is helpful
hopefully others will post too
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After realizing some clients were getting a bargain while others were being overcharged I changed to billing by item a decade ago. In the year of changing, some went up, some went down but the total billing for that year went up only slightly. The clients feel that I’m being fair to them.
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I have just increased my price to $145 for returns with all downloadable T slips (except T5008’s), medical, donations etc extra based on volume, $100 for T2125’s T776’s.
I do discount to $100 for full time students and low income seniors.
I’ve decided this year no new clients other than those referred by my existing clients
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My price is $60 for returns that have up to 3 slips, anything more is $5 per slip. T776s are $70 and T777 are $40.
For self employed clients (T2125), I charge $100. I also add an optional charge of $150 for those that are most likely to get pre-assessment/post-assessment verifications for my self employed or complex return clients. If clients choose to not pay that and they get audited, I charge an hourly rate of $60
For seniors and students, I charge $50 while for those on ODSP, I charge $40.
I moved to $75 regardless of how many slips. 776 is $50 and 2125 is $75. Seniors and low income 40% off. Anythng else like adjustments start at $35 and up
I use a menu pricing system.
The quote is prepared using a questionnaire involving what year, the type of return (Quebec, Immigration, Etc.), the core features of the return (number of slips, types of business statements,) additional returns (HST, T1135,) the length of time they have been a client, the time of the year that they give the first document, how they want to review the tax return, how responsive that they want our firm to be on receipt of the documents, etc…
There are about 40 questions, but all can be answered with minimal knowledge of what your return will look like.
This calculates a table of three different service levels and the associated price. They could go with core preparation (economical,) prepaid review insurance, or tax planning in the fall. They can also go with monthly payments, starting to pay for the return in July, or pay when it is ready.
This creates a price range that spreads from $190 to over $2,000 for the personal returns.
The advantage is that it is entirely calculated by the computer. I am preceived as having little input, so arguments about the price were no longer an issue when I went to this method.
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thanks everyone for providing your pricing
this helps me evaluate competitive pricing - especially with inflation
Hi Tim, do you use this on a website? I’m curious as to the process and how the client inputs the questions.
TaxCycle allows that within it’s system. I’m struggling to find a way that works out fair for everyone. Sometimes the prices seem excessive, others too low. And it takes a fair amount of time to fiddle with it.
i also have to adjust fees on a per client basis
Must admit I fiddle with the clients Invoice at least 1/3 of the time. The amount calculated by my fee schedule gives me a great place to start
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I don’t bill through TaxCycle mostly because I do a lot of advice on the phone/via zoom/in person for departure counseling and other issues as well as prepare a fair number of US returns. I have my standard fees that I outlined above and don’t deviate from it much as I figure it evens out over clients for the most part. My fees when I am doing the work myself usually average $80 to $100/hr for me and $20 to $25/hr for admin costs like software and insurance. Generally better when my assistant does most of the data entry - $15 to $20/hr to my assistant (they are usually first year due to the way my practice works as I have to hire and train fresh every year but I am forever hopeful), $150 to $200/hr to me and $20 to $25/hr to admin costs. I don’t give discounts usually but there are the odd people that I will discount if they are low income (very few - my clientele are quite well to do for the most part just due to the kinds of returns I do) or very organized. I do tend to allow a couple a discount in the form of I charge one the full price of $200 and the spouse (or kids) the CRA download only fee of $150 and for shared items like a rental statement I only charge the $100 fee once so it works out to $50/person for example.
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Similar to @David_R_Officer:
$75 for a basic single T1; $30 discount for a couple. Add $50-$100 for T776, T2125, T2042, or other complex schedules. Add $5-$25 for donations, medical, MV worksheets, etc. Then I compare how much time it actually took me, and try to ensure I’m getting at least $75 per hour. Often it ends up closer to $100 per hour. Average revenue per person for 2022 was about $85 (based on a $70 base rate). I rarely have a client complain about price.
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Nor should they at that price…
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I appreciate this discussion. I am charging $80/ basic return. $125/T2125, additional charges for new assets, vehicles and expenses. I also put on a 2.5% admin charge to cover off Square, CC charges through QBO.
I am semi retired and have no desire to be the cheapest or the most expensive. Thanks for all the input
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I’m with Tome, Nezzer & Gaye
My starting rate was $85 last year for a fairly simple return then I add by slips/schedules - how much depends largely on what’s actually involved (& how organized the client is). I’ll give a bit of a break for most seniors & charged flat $55 for dependent (FT student) returns if I’m already doing parent(s).
I’ve always kept in mind advice that I originally heard at a CMA practitioner’s seminar many years ago that one should generally try to incorporate a modest fee increase each & every year, so if the return hasn’t changed materially I start with prior yr invoice…for the (few) new clients I accept each year I also look at how it compares to the referring client!
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I too always look at last year, if things haven’t changed much I make sure it isn’t less than last year – but also not too much of a jump.
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