| Don't like surprises? Neither do I! This page will give you a very clear idea of what fees to expect in exchange for top-notch professional services. |
| General Guidelines |
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I consider it a point of personal honor to charge fair and reasonable
fees in exchange for excellent professional services.
Generally, my fees are based on a combination of the following:
fees in exchange for excellent professional services.
Generally, my fees are based on a combination of the following:
- Time spent
- Complexity of the engagement
- Level of expertise required
- Prior year's fee or estimate given
- Comparable fees charged by other C.P.A.'s
| PHONE: 209-257-0270 |
Income Tax Return Preparation
My minimum fee for income tax return preparation is $300. I provide
the following for every income tax return prepared:
The minimum fee includes basic federal and state tax returns. Unless
prior arrangements have been made, we ask for payment when the
tax return is picked up in our office. We accept cash, personal checks,
VISA, MasterCard or Discover Network cards.
More complex income tax returns incur additional charges, usually in
increments of $50. For example, a basic tax return with Schedule A
(itemized deductions) and a simple Schedule C (sole proprietorship)
would be $400. Add Form 2106 (employee business expense), and
the fee increases to $450. Capital gains transactions, rental real
estate, and passive loss calculations also add complexity and
additional fees. Multiple real estate sales and purchases, lengthy
depreciation schedules, and messy, disorganized financial information
result in higher fees simply because I must spend more time; and time
is money. If you organize and summarize your financial information
before you bring it in to me, my fees will be lower than they otherwise
would have been.
A part-year state return adds complexity because income and
expenses have to be allocated between resident states, even if you
have moved from a state that does not require income tax returns. My
minimum fee for a federal and part-year California income tax return is
$600.
the following for every income tax return prepared:
- Federal and state income tax returns with electronic filing.
- An instruction letter, including recommended estimated tax
payments, if necessary. - One half hour office meeting (if requested).
- Photocopies of the federal and state tax returns.
- Individualized tax organizer mailed each year in early January.
- Year-round availability for questions or professional assistance.
The minimum fee includes basic federal and state tax returns. Unless
prior arrangements have been made, we ask for payment when the
tax return is picked up in our office. We accept cash, personal checks,
VISA, MasterCard or Discover Network cards.
More complex income tax returns incur additional charges, usually in
increments of $50. For example, a basic tax return with Schedule A
(itemized deductions) and a simple Schedule C (sole proprietorship)
would be $400. Add Form 2106 (employee business expense), and
the fee increases to $450. Capital gains transactions, rental real
estate, and passive loss calculations also add complexity and
additional fees. Multiple real estate sales and purchases, lengthy
depreciation schedules, and messy, disorganized financial information
result in higher fees simply because I must spend more time; and time
is money. If you organize and summarize your financial information
before you bring it in to me, my fees will be lower than they otherwise
would have been.
A part-year state return adds complexity because income and
expenses have to be allocated between resident states, even if you
have moved from a state that does not require income tax returns. My
minimum fee for a federal and part-year California income tax return is
$600.
| Effective rates for 2009and 2010; subject to change thereafter |
Other miscellaneous fees you should know about:
- Automatic extension time to file, no balance owing: $30.
- Automatic extension of time to file, with CPA calculation of
balance owing: time spent at $200/hr. (in 15 minute
increments). - Withholding recommendations (requires worksheets with
estimates of income and deductions; I don't trust the W-4
worksheet): time spent at $200/hr. (usually one hour needed). - Extra copies of tax returns: $20.
- FedEx overnight: actual cost + $20
- Office meetings in excess of 1/2 hour during tax season: if you
have a "flat fee" arrangement wherein a 1/2 hour meeting is
included in the fee, we charge $200/hr. for extra time spent (in
15 minute increments). - Reprocessing the tax return because the client wants to make
changes: time spent at $200/hr. - Tax Analysis Report accompanying the individual income tax
return: $75.00 flat fee. - Tax planning and other miscellaneous professional reports:
time spent at $200/hr.
Knowing Where To Put The "X"
I don't know if this story is true, but it works for me.
An elderly gentleman retired from his 40-year job as equipment
maintenance engineer at a manufacturing plant. He was given a token
parting gift by the company - no "golden handshake" or exotic pension
plan. After he'd been retired for a few months, he received an urgent
call from the plant manager. An expensive piece of machinery critical
to operations had failed, and production had ceased as the equipment
maintenance staff struggled to repair it. Hundreds of thousands of
dollars were being lost each day the production line was down. The
elderly engineer told the manager he would return to the plant to look
at the machine, but as an outside consultant. The plant manager
agreed, saying, "Anything you want, just help us out."
The engineer arrived at the plant, tested the machine and looked it
over for about five minutes. He then walked over to the drawings of
the machine and drew an "X" over a small component in the interior of
the machine. "Replace this part, and the machine will work perfectly
again, " he said. Then he left. The part was quickly replaced, and he
was right - the machine began operating and production was up again
within the hour.
Two weeks later the plant manager received a bill from the elderly
engineer: $50,000 for consulting services. Remembering the engineer
had spent only five minutes looking at the machine and identifying the
problem, the plant manager telephoned the elderly gentleman and
angrily demanded a detailed invoice. The following day the invoice
arrived:
Time spent identifying the problem: $5.00
Knowing where to put the "X": $49,995.00
maintenance engineer at a manufacturing plant. He was given a token
parting gift by the company - no "golden handshake" or exotic pension
plan. After he'd been retired for a few months, he received an urgent
call from the plant manager. An expensive piece of machinery critical
to operations had failed, and production had ceased as the equipment
maintenance staff struggled to repair it. Hundreds of thousands of
dollars were being lost each day the production line was down. The
elderly engineer told the manager he would return to the plant to look
at the machine, but as an outside consultant. The plant manager
agreed, saying, "Anything you want, just help us out."
The engineer arrived at the plant, tested the machine and looked it
over for about five minutes. He then walked over to the drawings of
the machine and drew an "X" over a small component in the interior of
the machine. "Replace this part, and the machine will work perfectly
again, " he said. Then he left. The part was quickly replaced, and he
was right - the machine began operating and production was up again
within the hour.
Two weeks later the plant manager received a bill from the elderly
engineer: $50,000 for consulting services. Remembering the engineer
had spent only five minutes looking at the machine and identifying the
problem, the plant manager telephoned the elderly gentleman and
angrily demanded a detailed invoice. The following day the invoice
arrived:
Time spent identifying the problem: $5.00
Knowing where to put the "X": $49,995.00
_______________________________________________________
Professional accounting services are not interchangeable, and
frequently "you get what you pay for." Just like other professionals
(such as doctors and lawyers), some accountants are good and some
are not so good. Some charge higher fees than others. I am not the
cheapest service in the area, but I'm not the most expensive, either.
I have spent many years in college, passed a rigorous C.P.A. exam,
obtained the required years of experience, and annually update my
skills with at least forty hours of continuing professional education. I
research tax issues using a wide array of materials, always searching
for the best approach to minimize taxes for my clients while staying
within the law. I've been a professional accountant for over 20 years. I
know where to put the "X."
frequently "you get what you pay for." Just like other professionals
(such as doctors and lawyers), some accountants are good and some
are not so good. Some charge higher fees than others. I am not the
cheapest service in the area, but I'm not the most expensive, either.
I have spent many years in college, passed a rigorous C.P.A. exam,
obtained the required years of experience, and annually update my
skills with at least forty hours of continuing professional education. I
research tax issues using a wide array of materials, always searching
for the best approach to minimize taxes for my clients while staying
within the law. I've been a professional accountant for over 20 years. I
know where to put the "X."
Avoiding Misunderstandings
Fee disputes are unusual because I believe my invoices are fair and
reasonable. The best way to avoid misunderstandings is to ask
questions before deciding to ask us to do the work. I'm happy to
answer questions about my billing policies, and I'm not trying to trick
you into being liable for more than you intended.
Many clients request fee estimates in advance. I try to determine the
level of complexity before giving a likely fee range. Please remember
this is just an estimate, not a final commitment. If the work turns out to
be significantly more difficult than I originally thought, my fees will be
higher than the estimate.
If you decide to trust me with your sensitive financial information, it
seems logical this trust would extend to my integrity in rendering
accurate and honest professional invoices. My fees are what they
are. Once I prepare an invoice after the work has been done, that is
what I have earned. Like everyone else, I deserve to be paid for my
hard work.
reasonable. The best way to avoid misunderstandings is to ask
questions before deciding to ask us to do the work. I'm happy to
answer questions about my billing policies, and I'm not trying to trick
you into being liable for more than you intended.
Many clients request fee estimates in advance. I try to determine the
level of complexity before giving a likely fee range. Please remember
this is just an estimate, not a final commitment. If the work turns out to
be significantly more difficult than I originally thought, my fees will be
higher than the estimate.
If you decide to trust me with your sensitive financial information, it
seems logical this trust would extend to my integrity in rendering
accurate and honest professional invoices. My fees are what they
are. Once I prepare an invoice after the work has been done, that is
what I have earned. Like everyone else, I deserve to be paid for my
hard work.
________________________________________________________
I hope this discussion helped you better understand my policy
regarding professional fees. I have found over the years that full
disclosure and open communications regarding my fees almost always
produce a respectful and productive business relationship. Thank you
for considering my firm for your accounting needs.
regarding professional fees. I have found over the years that full
disclosure and open communications regarding my fees almost always
produce a respectful and productive business relationship. Thank you
for considering my firm for your accounting needs.
Margaret Copenhaver, C.P.A.
FEES
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