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Started By
Message
Accountants fees skyrocketing
Posted on 2/5/23 at 10:29 pm
Posted on 2/5/23 at 10:29 pm
Edit (for tax prep). Yall experiencing this? Mine have seen at least 150% increase in last couple years. Mother in law just got a notification that hers will double to $950 this year. What the heck? And for that reason, im out… sorry to my long time accountant friend.
This post was edited on 2/5/23 at 10:46 pm
Posted on 2/5/23 at 10:45 pm to tigerfive
My accountant does my taxes. So yes my tax preparer
Posted on 2/6/23 at 5:11 am to LChama
Depends on how complex your taxes are and the time to complete. We have one because of my wife's business and he is worth every penny. I'm sure I could figure it out, but we are so busy, I would rather pay a professional.
Posted on 2/6/23 at 7:29 am to LChama
Things are more complex. There are less and less CPAs and accountants who want to deal with taxes, along with increase in tax software and wages for staff means prices are going up.
For years CPAs ate a bunch of their time, from talking to a few firms, those firms have enough work that they are starting to charge you what it takes to complete your return. If you don’t like it, ask them if there is a way to lower your fee (maybe your organize better, have better records, etc) or do it yourself.
For years CPAs ate a bunch of their time, from talking to a few firms, those firms have enough work that they are starting to charge you what it takes to complete your return. If you don’t like it, ask them if there is a way to lower your fee (maybe your organize better, have better records, etc) or do it yourself.
Posted on 2/6/23 at 8:26 am to LChama
Most accounting firms (mine included) are increasing their fees. Part is due to inflation, part is due to the mass exodus that has taken place in the profession and the increasing difficulty to find and keep good employees.
Doubling your fees, however, is a lot and is often times an indirect way of saying “I don’t want to deal with you anymore.”
Doubling your fees, however, is a lot and is often times an indirect way of saying “I don’t want to deal with you anymore.”
Posted on 2/6/23 at 8:59 am to LChama
Double to $950? How big of a firm is this? If you were only being charged $475 then it was an incredibly easy return and you can likely have a tax preparer like HR block do it.
If this is a larger firm then generally they have book keepers or accountants fresh out of school do the work and then someone higher up will give it a quick look over.
If this is a larger firm then generally they have book keepers or accountants fresh out of school do the work and then someone higher up will give it a quick look over.
Posted on 2/6/23 at 9:03 am to LChama
quote:
. Yall experiencing this?
Yes, mine messaged saying they were bumping mine to $415 a month. I have a more complex file than some though. Rentals, flips, etc. Fairly involved.
I'm now looking for other options.
If all you have is a W2, just do turbo tax
Posted on 2/6/23 at 9:46 am to LChama
1. They are constantly changing the laws at this point and making filings more complicated and time consuming
2. Shortage of accountants willing to work the hours they have in the past
3. 80% of our headache comes from the bottom 20% of clients.
Solution: fire shitty clients and raise prices.
You’re saying sorry to your friend but you probably actually took the option he wanted you to take. There’s no shortage of work right now. Accountants typically don’t like straight up firing clients. So they give you a high fee to either accept or walk. Hoping a decent chunk will walk.
2. Shortage of accountants willing to work the hours they have in the past
3. 80% of our headache comes from the bottom 20% of clients.
Solution: fire shitty clients and raise prices.
You’re saying sorry to your friend but you probably actually took the option he wanted you to take. There’s no shortage of work right now. Accountants typically don’t like straight up firing clients. So they give you a high fee to either accept or walk. Hoping a decent chunk will walk.
This post was edited on 2/6/23 at 9:50 am
Posted on 2/6/23 at 9:51 am to LChama
I think we should just all not pay taxes this year
They can’t arrest all of us right?
They can’t arrest all of us right?
Posted on 2/6/23 at 10:48 am to LChama
Congress and the states make tax law more complex.
Software companies have to make their systems more complex, which means they have to charge more for their software.
Firms are feeling tremendous labor pressure because of a shortage of warm bodies, and honestly, as tax law gets more complex, we need more than warm bodies.
I do 95% consulting these days and very little tax prep, but our firm's minimum 1040 price this year is $1,500 for no states, $300 per each "easy" state (like LA) and $500 for each "hard" state (like NY).
Our 1065/1120/1120S monimums start at $4,000 and that is with a fully clean set of books including fixed asset depreciation.
For our older clients that are not at those prices, we are raising fees 10% per year / $100 per year (whichever is more) until they get to our min fee... which of course is increasing each year as well.
We are focusing heavy on volume billing. We do very little hourly billing anymore.
Having said that, if your tax return is just a commodity (i.e. no planning or discussion goes into it... just entering in numbers) it's not a good deal for you or for us to have us prepare your tax return.
And yes... we absolutely "high quote" clients who are a pain to us / we don't want to work with. If you leave... bye. If you stay and pay that fee... well at least that makes your aggravation worthwhile.
And for anyone who thinks our fees are too high... every day we are turning away work.
Software companies have to make their systems more complex, which means they have to charge more for their software.
Firms are feeling tremendous labor pressure because of a shortage of warm bodies, and honestly, as tax law gets more complex, we need more than warm bodies.
I do 95% consulting these days and very little tax prep, but our firm's minimum 1040 price this year is $1,500 for no states, $300 per each "easy" state (like LA) and $500 for each "hard" state (like NY).
Our 1065/1120/1120S monimums start at $4,000 and that is with a fully clean set of books including fixed asset depreciation.
For our older clients that are not at those prices, we are raising fees 10% per year / $100 per year (whichever is more) until they get to our min fee... which of course is increasing each year as well.
We are focusing heavy on volume billing. We do very little hourly billing anymore.
Having said that, if your tax return is just a commodity (i.e. no planning or discussion goes into it... just entering in numbers) it's not a good deal for you or for us to have us prepare your tax return.
And yes... we absolutely "high quote" clients who are a pain to us / we don't want to work with. If you leave... bye. If you stay and pay that fee... well at least that makes your aggravation worthwhile.
And for anyone who thinks our fees are too high... every day we are turning away work.
Posted on 2/6/23 at 11:04 am to LChama
Inflation
All that fuel that they use typing on their keyboards I guess.
All that fuel that they use typing on their keyboards I guess.
Posted on 2/6/23 at 11:24 am to LChama
CPAs have seen insane wage growth over the last couple years. My CPA friends have seen their income more than double since COVID.
Posted on 2/6/23 at 11:40 am to LChama
You are just seeing inflation hit your wallet? Congrats.
Posted on 2/6/23 at 11:43 am to lsu13lsu
yes, mine mailed us a letter stating that tax preparation would move from $450 last year to $1000 this year. Back to TurboTax...
Posted on 2/6/23 at 12:06 pm to baldona
quote:
If this is a larger firm then generally they have book keepers or accountants fresh out of school do the work
From what I am hearing from my few friends still in public, a lot of firms that are not the Big4 are having problems filing these roles with fresh grads willing to put in the hours. Having a hard time finding people willing to put in more than 50 hours during busy season, which is forcing them to increase their workforce, or turn down work and increase fees.
Posted on 2/6/23 at 12:17 pm to Weekend Warrior79
quote:
From what I am hearing from my few friends still in public, a lot of firms that are not the Big4 are having problems filing these roles with fresh grads willing to put in the hours. Having a hard time finding people willing to put in more than 50 hours during busy season, which is forcing them to increase their workforce, or turn down work and increase fees.
The entire CPA firm model is built on leverage. Hire young people with low hourly effective wages (due to OT) and charge them out at miuch higher rates.
That works as long as there is a steady supply of such young kids.
That is drying up.
Posted on 2/6/23 at 12:25 pm to LChama
Maybe we should pass the FairTax proposal so you no longer have to file taxes?
Posted on 2/6/23 at 12:26 pm to LSUFanHouston
Hard to major in accounting these days when you can major in things like comp sci where you make more money coming out, work far fewer hours, and don't need extra schooling in order to pass a shitty comprehensive exam that takes at least six months to pass (if you're lucky).
PA is basically white collar slave labor.
PA is basically white collar slave labor.
Posted on 2/6/23 at 12:29 pm to FinleyStreet
quote:
PA is basically white collar slave labor.
quite an exaggeration
New generation & my generation acts like it is though
This post was edited on 2/6/23 at 12:30 pm
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