client wants to know can I handle everything..

Software. Marketing. Training. Running your business.
#1
Posts:
394
Joined:
13-Sep-2014 1:26pm
Location:
New York
hi all, I'm meeting with a prospective client who wants to meet to see if I can handle everything for their new business. what should I be ready for? I'm comfortable handling all business tax returns, bookkeeping and sales tax if needed, and advising on new tax changes and how they will affect business taxes .What else should I anticipate a business client asking about? thanks very much in advance for your feedback
 

#2
Posts:
107
Joined:
21-Apr-2014 8:03am
Would I save taxes if I had a C corporation?
How much tax would I save if I had an LLC? (trick question)LLC may be a C or S corporation.
Do I get to deduct all of my car?


How much do you charge?
Do you charge for phone calls or emails, how about texts? If so, how much? I would only have a simple question that would take very little of your time.
Will you represent me in an audit?(implied that tax prep fee includes audit representation)
Are you available after hours?
Will you also prepare my dependents and mother's tax returns, all are very simple?
Would you prepare my return for the first year and let me compare it to my current preparer?

Just a few that I have been ask.
 

#3
Posts:
394
Joined:
13-Sep-2014 1:26pm
Location:
New York
Thanks Phil !
 

#4
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
I ran into this situation about 4 years back with a new business client. They were impressed with my presentation, references and charges. I prepared the 1065 and employment tax (941, 940 and state) for one year and then he calls me and said that their new bookkeeper will do the employment tax filing because she did that in a previous job. Fine with me. Last year they got audited for some missed payments and one employee filed for unemployment benefits and when state wanted to garnish for some other obligation, it turned out employee was misclassified. So now they want me to clean up the mess! No Thank You!
 

#5
Posts:
679
Joined:
30-May-2014 1:43pm
Location:
MA
I find a lot of new business owners do not really understand what service most CPA firms (or EA's or tax preps) provide so when I hear they want you to do everything, I would not be shocked if they think you will pay their bills, make deposits, reconcile the bank statements. Literally all the accounting activities of a small business.
 

#6
Posts:
1174
Joined:
21-Apr-2014 7:09pm
Location:
NC
I would back away. Any type work that can be done by a book keeper, should be done by a book keeper in my view. When the CPA/EA does that work, he becomes a book keeper in the eyes of the client. I tell clients, you must use Paychex for example. You must be able to file your own sales tax. Completing a passport document is more complex than sales tax. If they can't do it, I simply pass. I try to focus on work that will yield $250 an hour or more.
 

#7
Posts:
2887
Joined:
21-May-2018 7:50am
Location:
Northern MI and Coastal SC
southparkcpa wrote:I would back away. Any type work that can be done by a book keeper, should be done by a book keeper in my view. When the CPA/EA does that work, he becomes a book keeper in the eyes of the client. I tell clients, you must use Paychex for example. You must be able to file your own sales tax. Completing a passport document is more complex than sales tax. If they can't do it, I simply pass. I try to focus on work that will yield $250 an hour or more.


Do you not have staff that can perform the lower level services?

In cases like this, I create contractual fees that cover a defined scope of services. Effectively, I become their controller. With that said, even if I do all the work, my effective hourly rate is typically higher than my actual hourly rate.
 

#8
Posts:
394
Joined:
13-Sep-2014 1:26pm
Location:
New York
in addition to doing corporate and personal tax returns client wanted a CPA for certifying reports going forward. I'm an EA and focus on taxes only therefore I referred them to a colleague who is a CPA in a firm. I'm disappointed as I was hopeful for a good new account but I know I'm better off staying in my niche. thanks all for your great advice.
 

#9
Posts:
1174
Joined:
21-Apr-2014 7:09pm
Location:
NC
CornerstoneCPA wrote:
southparkcpa wrote:I would back away. Any type work that can be done by a book keeper, should be done by a book keeper in my view. When the CPA/EA does that work, he becomes a book keeper in the eyes of the client. I tell clients, you must use Paychex for example. You must be able to file your own sales tax. Completing a passport document is more complex than sales tax. If they can't do it, I simply pass. I try to focus on work that will yield $250 an hour or more.


Do you not have staff that can perform the lower level services?

In cases like this, I create contractual fees that cover a defined scope of services. Effectively, I become their controller. With that said, even if I do all the work, my effective hourly rate is typically higher than my actual hourly rate.


Yes but I think of any firm that I ever worked for from PW to a 10 man shop. The work we did never included this type work.

I follow that model. I hear you, but we run a small shop and I try to NOT get bogged down and my assistant makes near 6 figures so I I can't have her bogged down either.
 

#10
zl28  
Posts:
2066
Joined:
22-Apr-2014 10:27pm
Location:
usa
i've run into two prospective clients who are paying an accounting firm to do payroll - i think that's crazy - one guy is paying a few thousand. Makes me look good that I say i could never compete with the fee of a Payroll service nor do i want that very time consuming work. I told the client to transition to a Paychex or the like - he'll save thousands and they guarantee their work. Now i don't look solicitous where i am grabbing every piece of work i can from them and they'll save $ and hopefully hire me.
 

#11
Posts:
8152
Joined:
4-Mar-2018 9:03pm
Location:
The Office
Had a prospect this week that wanted me to handle, going forward:

-Income Tax Returns
-Accounting
-Sales Tax Returns
-Liaison between bank, vendors, etc.

No thanks, especially on the last one.
 

#12
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
ManVsTax wrote:Had a prospect this week that wanted me to handle, going forward:

-Income Tax Returns
-Accounting
-Sales Tax Returns
-Liaison between bank, vendors, etc.

No thanks, especially on the last one.


This fellow is really looking for a glorified bookkeeper! I would not touch the last one with a 10ft pole :roll:
 

#13
Posts:
8152
Joined:
4-Mar-2018 9:03pm
Location:
The Office
Yup...I'm sure someone will do it for him...but it won't be me.
 

#14
smtcpa  
Posts:
515
Joined:
28-Jul-2014 5:16am
Location:
Richmond, VA
Sounds like my ideal client for fractional CFO services...will he take a virtual firm?

ManVsTax wrote:Had a prospect this week that wanted me to handle, going forward:

-Income Tax Returns
-Accounting
-Sales Tax Returns
-Liaison between bank, vendors, etc.

No thanks, especially on the last one.
 

#15
Posts:
2887
Joined:
21-May-2018 7:50am
Location:
Northern MI and Coastal SC
smtcpa wrote:Sounds like my ideal client for fractional CFO services...will he take a virtual firm?

ManVsTax wrote:Had a prospect this week that wanted me to handle, going forward:

-Income Tax Returns
-Accounting
-Sales Tax Returns
-Liaison between bank, vendors, etc.



My thoughts, too. This is the type of work I like to obtain, because it IS very profitable when the owner actually realizes their limitations and they do not want any involvement. I am a liaison between banks, vendors, legal counsel, etc., for clients and it has paid off a hundred times over as they realize my value, which also allows me to increase overall fees.

As for payroll, I only do it if I have a lot of other work from the client and they'll do payroll on MY terms. Otherwise, yes, go elsewhere. But, I am amazed at what some of my clients pay well known payroll companies. I would charge a lot less, and I charge HIGH fees for payroll since it is such a PITA.
 

#16
CP Hay  
Posts:
226
Joined:
3-Apr-2019 5:24pm
Location:
NEW YORK (NY)
I know this is an old thread but it's an interesting topic. Providing these other services like being a liaison, payroll, etc., while more bookkeeping than tax, could be an opportunity to show your value if you're marketing yourself as a one-stop-shop. For those of you who offer payroll what has your experience been in terms of customer service with some of the widely-used companies? I've tried a few and if something goes wrong it seems that the customer service reps seem to disappear or try to push you into a labyrinth of channels with no real solution. Has that been your experience? Have you found any particular payroll company more reliable than others?
 

#17
novacpa  
Posts:
1228
Joined:
28-Apr-2014 1:16pm
Location:
McLean, Virginia 22101
ADP I recommend.
Also, I have several "full charge Bookkeepers" that I have confidence in their work product.
They produce fully adjusted Financial Statements from which I prepare tax returns.
For Tax Planning, I duplicate the prior year's returns and make current year's adjustments,
to produce current year's tax results.
 


Return to Business Operations and Development



Who is online

Users browsing this forum: CaptCook and 30 guests