After reading all these comments, I’m convinced that billing by form was the most time saving and fairest way to go for everyone including myself. Of course I often add additional time if needed and each year I add one or two dollars to the basic t1 form.
I presently use a third party website, but I am trying to develop code to do the same within my CSM software.
I do the input, not the client. Had one client attempt to answer things on paper and realized quickly that it didn’t work.
YEG
This year my base is $185 which includes all slips downloaded or not (except T5003s), most schedules are $25-55 in addition to that, except T2125/T776/T2032 etc which are $135, and complicated things like T1135, Alternative Minimum, or the Tax on Split Income which are more. My average was $246.03.
I give discounts for seniors (25%) and students (to $100 flat) and single parents (floating scale from $50 flat to just a %age off).
Half of my clients are also corporate clients, and all are referrals. I haven’t taken a client except by referral in 15 years. I really like the “Increase prices by 1%” feature on the Price options page. I do that every year (at least 2%, but this year 6% to keep up with inflation).
Our rates are pretty much like others have stated except for self employed T1s. We are way higher. Some home based businesses where client brings in a simple P&L and we just bang it in, that might be $100-$300. But if it is a real business, with a proper set of books (that we will review) our rates range from low of about $1,000 to in some cases $3,000 or higher.
Awesome @TimParris ! I use Menu pricing as well and I can’t recommend having a system like this enough! The perception in the customers mind is frequently that filing their tax return is ‘easy’ and they may compare your price to the lowest price available on the market (that they know of). Their reference price is often very low. By taking them through a menu pricing experience, which gives you an opportunity to ask about areas that consume your time/resources (scope factors) and additional things that matter to the client and that you should charge extra for (e.g. anything advice related, or an add on, planning), you give the customer a chance to understand that many customers will be willingly paying a significant amount to access your top service level (they pay more, they get more).
Some clients will still be very price sensitive and choose the lowest price option - that’s totally ok. They’ve at-least been given a chance to review alternatives and you’ve avoided the trap of underestimating the work required to complete the return, or doing extra unpaid work.
Nobody should feel the pressure to compete with price takers - those who offer tax preparation services for the lowest possible price.
As well, anyone not increasing their prices with inflation is, in effect, discounting their prices in that year that they keep prices static. This calculator is great to share with clients, and if they are business clients, to help encourage them to also keep their prices at-least in line with inflation: Inflation Calculator - Bank of Canada.
Banks update their pricing every year at a percentage rate that is typically ahead of the inflation rate - sometimes quite a bit higher, with higher increases often flowing to more premium products they offer.
Yes, a really great tool…
It also helps demonstrate how the dollar has lost 96.02% of its purchasing power since 1914 (or 86.74% of its purchasing power since 1970) … but most still don’t understand the concept of inflation being a silent tax designed by central bankers to subtly rob you of your financial assets without you noticing.
Agreed. I listed our base price, but I have clients whose T1s include multiple complicated schedules and run in the $5000/year range.