How to Set Your Rates

Foranyone who does taxes or offers a local tax prep service for people or businesses, you will likely encounter some common questions regarding rates. The most basic of these, as the video reveals, is how to set your rates?

While it is necessary to charge enough to make it a viable endeavor, it is also vital not to overcharge, which can hurt your reputation, cost you business, and even be unfair to your clientele. So, how do you set your rates?

How to Set Rates for Your Local Tax Prep Service
As you are likely already aware, there is no hard and fast rule on how to set your rates or even what to charge for what services.

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The good news is there are a few guidelines that can help.

Where you are located and how affluent your community may be is an important consideration. Feel free to look around and even inquire as a potential customer to get an idea of what the common rates are in your area.

Having taxes prepared by a CPA versus an enrolled agent, for example, will cost more. This practice is also understandable and considered acceptable in the world of tax preparation.

The Work Involved
Another consideration is how much work is involved. For filings that require tracking down documents or correcting issues versus organized and complete paperwork, more can be expected in terms of charges.

As customers, it is important to know what rates a preparer charges, but as a preparer, it is even more important to know how to set those rates.

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