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Business client billing

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#1
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Do any of you bill your business clients one large bill for the business tax return as well as the personal tax return for the owner(s)?
 

#2
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I do with a few of my clients.
~Captcook
 

#3
ATSMAN  
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Yes most of my business clients prefer an invoice after I file their business and personal tax returns ( I have a few where someone else prepares their personal tax return for any given reason). I will typically bill them in May.
 

#4
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Do you itemize the bill or just a line item for 20XX Taxes
 

#5
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TaxMan2020 wrote:Do you itemize the bill or just a line item for 20XX Taxes


Depends on the client...one I will just have a line item on the bill saying "Preparation of income tax returns...$3,000" and send them an email separately outlining the cost for each individual return.
Others I will include it in the description "Preparation of corporate and individual income tax returns...$5,000" or something to that effect.

My narrative on the bill is really only reflecting the conversation I already had with them about their work.
~Captcook
 

#6
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We use the generic "Ancillary Tax Services for Shareholders" on the bill to reflect any tax prep or tax planning for shareholders.

We have had a few IRS audits where the auditor asks for copies of the accounting bills but I do not recall it ever being a huge issue.
 

#7
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I like to include a few different items on a year bill.

If you did 1099's include

Preparation of U.S. Information Returns (Form 1099 and Form 1096)

For each year end

Prepare Year End Working Trial Balance

Adjusting Journal Entries as Required

Teleconference with Shareholder or Office Manager or Bookkeeper regarding various accounting issues (there is always at least a simple question to ask)

And then for the Corporate Taxes

Preparation of 2020 U.S. Income Tax Return for an S Corporation (Form 1120S)

Preparation of each state return separately (Form 355S)

Preparation of 2020 Massachusetts Annual Report (which takes less than 3 minutes online).


Now you have a whole page of items. We actually do a WTB and AJE for every client and then link through ProFX G/L Bridge. So our minimum C Corp/S Corp/1065 price seems to be much higher than I see listed in the trade magazines. We tell new clients at least $3,000 for business tax returns
 

#8
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I do separate billings to keep it clean since I track revenue by client. I do not care who pays as long as they record it properly.

For business owners that do not file separate returns, I'll indicate a percentage of the fee that is allocable to the Schedule C or E activity.
 

#9
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CornerstoneCPA wrote:I do separate billings to keep it clean since I track revenue by client. I do not care who pays as long as they record it properly.


Same.

Separate bill for each taxpayer or regarded tax entity. It makes it easier for the client and easier for me in the long run. They know which bill to pay out of which account and don't have to record journal entries.
 


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