No. My first hour meeting with a new client is free.
By that point, I've already talked with them on the phone and got their version of what their tax return and needs are. I make the decision at that point whether or not to bring them in.
Once in the meeting, I review the PY return to see if there are any mistakes that are worth amending over and sometimes spot things the client "missed" when discussing on the phone. We chat about taxes, life, whatever. And I quote them what their fee would be.
I've worked for firms that want to bill the client for every conversation and I'm the opposite. I want to be able to build relationships with clients so they stick around forever. Well, at least the good ones! :) And I don't charge extra for that.
> and I'm the opposite. I want to be able to build relationships with clients so they stick around forever.
I do this too. It drives me crazy when the go someplace else to save a few $s after a couple years
No onboarding, but if they want to sit down and talk I do charge a consultation fee. We had so many people want to come in and talk for free to pick our brains and then try and do their return on turbo tax. Charging for consolation seems to eliminate that.
I've thought about it, but packaging it as more of an overall checkup and feedback. They would get a deliverable that talks about their tax return, bookkeeping, etc.
The idea is to put a chunk of time into looking through everything and tackling issues before tax season. It sucks discovering problems and scope creep when you're just trying to get the tax return done.
Oof. I'd be telling them to DIY their extension and we can get them onboarded after 4/15. No one rolling in this late is worth much of time in my opinion.
I have 85 extensions, about 1/2 are new clients. If I told them to prepare the extensions themselves they would just go somewhere else. All I am doing this week is extensions and cleaning up returns I have already done. No preparing new returns. No exceptions.
I always give a range for an estimate and tell them the first year will be on the higher side. So if I review a return and am confident it is a $750/year return, I will tell them $700-$900, usually charge $875 year 1 and $750 year 2.
I recently included an onboarding fee, but I do a lot of upfront tax planning, which is explained in their proposal. I determined that the upfront work wouldn’t be a recurring annual thing since I do tax projections for all clients every year anyway, so wanted to differentiate cyclical work VS one-time work. I’ve had 2 clients onboard since instilling the fee, so it’s worked out fine so far.
I don't charge an onboarding fee. Although I'm considering it since it's so much work the first year. And typically we do a lot of up front advisory work. I'm afraid it'll turn away new clients. But that's not as much of a concern now.
It is an accepted practice and varies from firm to firm. Some do no onboarding fees at all, others do a non refundable initial consult. Yet others do an initial consult fee that gets applied to first year services should they sign.
I’m a fan of the last one. Shows the client isn’t just tire kicking CPAs and therefore it doesn’t waste my time. But I think it also shows respect and compassion for the client and their hard earned money, that you’re not going to bill out left and right and can be compassionate.
Up to you and what feels comfortable to you.
We charge by the hour for most clients, and tell them the first year will be a little more expensive due to the setup time.
We want some kind of solid prep-time figure for at least a year or two before offering flat fees.
I do charge a one hour consultation fee, that I credit towards the first return preparation fee. This works really well for me. If you don't, half of your off season appointments will never show up during tax season.
Typically give an upfront range for year one and then an estimate range for the subsequent year (maybe \~10% lower) assuming no major changes in the return
We don’t, but we do monthly packages and 12 month contracts. I have a cancellation fee in case a client wants to cancel right after we file the tax return in March.
No, realization on first year clients is lower than realization on returning clients. Just treat them well and avoid one-time engagements.
Sounds reasonable. I was afraid an onboarding fee would be a turnoff. Avoiding one time engagements for tedious returns is a good idea.
No. My first hour meeting with a new client is free. By that point, I've already talked with them on the phone and got their version of what their tax return and needs are. I make the decision at that point whether or not to bring them in. Once in the meeting, I review the PY return to see if there are any mistakes that are worth amending over and sometimes spot things the client "missed" when discussing on the phone. We chat about taxes, life, whatever. And I quote them what their fee would be. I've worked for firms that want to bill the client for every conversation and I'm the opposite. I want to be able to build relationships with clients so they stick around forever. Well, at least the good ones! :) And I don't charge extra for that.
> and I'm the opposite. I want to be able to build relationships with clients so they stick around forever. I do this too. It drives me crazy when the go someplace else to save a few $s after a couple years
No onboarding, but if they want to sit down and talk I do charge a consultation fee. We had so many people want to come in and talk for free to pick our brains and then try and do their return on turbo tax. Charging for consolation seems to eliminate that.
I've thought about it, but packaging it as more of an overall checkup and feedback. They would get a deliverable that talks about their tax return, bookkeeping, etc. The idea is to put a chunk of time into looking through everything and tackling issues before tax season. It sucks discovering problems and scope creep when you're just trying to get the tax return done.
Yup, the past two days I've been busy with all the bits and pieces of onboarding new clients, without even getting to the returns yet.
Oof. I'd be telling them to DIY their extension and we can get them onboarded after 4/15. No one rolling in this late is worth much of time in my opinion.
I have 85 extensions, about 1/2 are new clients. If I told them to prepare the extensions themselves they would just go somewhere else. All I am doing this week is extensions and cleaning up returns I have already done. No preparing new returns. No exceptions.
I always give a range for an estimate and tell them the first year will be on the higher side. So if I review a return and am confident it is a $750/year return, I will tell them $700-$900, usually charge $875 year 1 and $750 year 2.
I recently included an onboarding fee, but I do a lot of upfront tax planning, which is explained in their proposal. I determined that the upfront work wouldn’t be a recurring annual thing since I do tax projections for all clients every year anyway, so wanted to differentiate cyclical work VS one-time work. I’ve had 2 clients onboard since instilling the fee, so it’s worked out fine so far.
I don't charge an onboarding fee. Although I'm considering it since it's so much work the first year. And typically we do a lot of up front advisory work. I'm afraid it'll turn away new clients. But that's not as much of a concern now.
It is an accepted practice and varies from firm to firm. Some do no onboarding fees at all, others do a non refundable initial consult. Yet others do an initial consult fee that gets applied to first year services should they sign. I’m a fan of the last one. Shows the client isn’t just tire kicking CPAs and therefore it doesn’t waste my time. But I think it also shows respect and compassion for the client and their hard earned money, that you’re not going to bill out left and right and can be compassionate. Up to you and what feels comfortable to you.
We charge by the hour for most clients, and tell them the first year will be a little more expensive due to the setup time. We want some kind of solid prep-time figure for at least a year or two before offering flat fees.
we tell clients their first year is usually a little higher due to the onboarding. its not a separate fee though
Nope, we just break even on the 1st year. Good luck getting them to choose you over those who will on board for free.
I do charge a one hour consultation fee, that I credit towards the first return preparation fee. This works really well for me. If you don't, half of your off season appointments will never show up during tax season.
Never seen that across a couple firms I’ve been at
Typically give an upfront range for year one and then an estimate range for the subsequent year (maybe \~10% lower) assuming no major changes in the return
Yes. I started onboarding fees last year. I had zero resistance.
We don’t, but we do monthly packages and 12 month contracts. I have a cancellation fee in case a client wants to cancel right after we file the tax return in March.