Good afternoon -
This is the first tax season that I'm doing taxes on the side and I've run into my first fee conscious client (or rather his wife). I've learned a couple of valuable lessons from this experience in quoting a price before I see everything - but I suppose you learn everything the hard way. Tell me if the following fees seem reasonable - this is a 1040 with Schedule C (Used Car lot), Schedule E (Rental property). I originally quoted the client around $500 when I was just under the assumption it would be the schedule C alone. Well his books turned out to be a nightmare (go figure) and then once I got his stuff I discovered that he had a rental property as well. Then he asked me to prepare his Franchise Tax as well as his Property Tax Rendition (I explained these would be extra and he agreed.) I charged him as follows:
Books: $200
Return: $650
FTR: $100
PTR: $100
Total: $1,050 for bookkeeping 2 bank accounts, 1040 w/ Sch C and E, and FTR/PTR prep.
He didn't say anything when I went to his house to deliver the return and invoice him but his wife called two days later to complain about the fee. I explained to her about the Schedule E not being quoted as well as FTR an PTR but nonetheless she's left me second guessing myself. I know from my years in public accounting that these fees aren't reasonable but I would love any feedback from the community. Thanks in advance!