Deprecated: Function create_function() is deprecated in /home/pract963/public_html/wp-content/themes/beginner/functions.php on line 759
Getting Advice From Strangers – Practice Builder Publishing – Tools & Resources For Accountants And Tax Practitioners


Getting Advice From Strangers

Like Tweet Pin it Share Share Email
Recently, several clients were asking questions related to pricing.

One wanted to know what to charge to set up a set of books, another wanted to know how to get a set of books up to date after the firm had avoided any accounting for months, and another just wanted to know which was the best software to choose that would allow them to pay on a per return basis.


I know I try to act all knowledgeable, but don’t let my smart alec answers steer you wrong.

These are all questions that you, as a professional, need to figure out for yourself, and use a little common sense.

About what to charge.

Do you have the ability to estimate the amount of work involved, based on your own history and the number of transactions to post, the number of bank accounts, the number of ledgers, the number of checks, the number of employees, and all that sort of stuff?

About getting the books caught up.

Same deal, except you need to extrapolate the work out to cover the number of months you have to get caught up.

Of you don’t have enough experience to have developed even some seat of the pants feel for how long it will take you to get that amount of work done, then you need to come up with an amount you want to realize on an hourly basis, multiply it by some number so that you’ll be able to cover the overhead you’re likely to run into, and charge by the hour.

Once you have some experience with either a client, or several clients, then you can start quoting fixed rates, or as the hot word is these days, the value price..

Your objective in any kind of pricing is to first come up with what you want to net at the end of the year, calculate what your productivity will be, and get a multiplier. Basically, if you want to earn $100,000, and you will only be working 1,650 of the average annual 2,200 hours per year, then you need to charge one and one-third as much as you would charge if you were working all of your available productive hours.

And, you need to bump it up a bit to cover overhead, such as rent, utilities, insurance, supplies, wear and tear on machinery and supplies. Plus anything else that you are going to have to cover.

I know this is a simplified explanation, and I may have calculated incorrectly, but the idea is simple, and if you have trouble figuring it out, take a little time and think on it. You got to cover costs, you got to earn an income, and you’re not going to be doing production all the time if you want to grow your business, so you have to figure non-billable hours in for marketing.

That’s it.

And what software to use?

I have no idea. I didn’t like taxes, I don’t do them now that I’m retired, and I don’t know who to ask. In cases like this, Google is your friend.

Join us here at Practice Builder Publishing and become a part of the community, whether you become a contributing author, a peer recruiter, or merely a raving devotee of the Practice Builder Publishing resources, I'll work with you personally so you can reach the goals you set.

Best to you and yours,




P.S. Think I'm full of B.S.? Maybe you ought to let me know what you think. Plop your comments in the section down below the related articles and let me know what you think.!

P.P.S. Got questions about products and services I talk about, the terms of service, privacy nd all that stuff related to Practice Builder Publishing? Click Here to read the fine print.

Join over a half dozen accounting practitioners like yourself that like us on Facebook, plus join over 7 fast growing practitioners by joining our private Practice Builder Publishing Facebook Members Group! (Like those numbers? I just made them up. The group is small, but the advice is huge. Join now, while you can get in for free.)
Share your experiences, and pick our brains.


Get Into Tax Representation NOW!

I would love to see you build a great Tax Practice, building a strong client base by helping troubled taxpayers solve their problems with the IRS.

I want you to become a part of the Practice Builder Publishing network, and I want to work with you personally to reach maximum profit potential this year! Nothing I teach or help you with damage your credibility. It will simply get you more clients and help you make more money.

If you stop searching for the next magic trick, the perfect software, the "shiny object" that's going to do all the work for you (note: it doesn't exist)- and just focus on building & serving your market - you'll actually start seeing GREAT results. FAST.

Get started building your practice by learning how actual practitioners build their business marketing tax representation services, and start building it FAST, by clicking on the link below. Click the button below and find out more!

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.