Can you get on a quick call?

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#1
TAXTAX  
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My client is the nonprofit organization. I got it through my individual tax client who is a consultant to the organization.

I am currently engaged to do the nonprofit returns. My "tax client" consultant will ask me accounting questions as well as tax situation that the nonprofit faces. The most recent one is about donation.

I only charge a fix fee to do the nonprofit returns and feel that I should charge the consultant or the nonprofit for the "quick questions" that they have. I see this will keep coming if I continue to be engaged to do their tax returns. i feel that I have to lay down some "rules" before the unbilled time gets too big.

How would you deal with this type of "quick questions"? It does add up time and I do need to research it a bit to give "quick answers".
 

#2
Frankly  
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Adjust the fixed fee up when it comes time to file the tax returns.
 

#3
sjrcpa  
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Invoice:
Tax return preparation XXXX
Consulting on ........ XXX
 

#4
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It starts at the very beginning by discussing billing practices during the exploratory call.

Then it helps to have annual and engagement docs that the client signs that refreshes and reminds them of those practices. I've gotten flak about this particular process before here, but it works very well for me.
 

#5
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Frankly wrote:Adjust the fixed fee up when it comes time to file the tax returns.


I do this if it looks like it's going to be about 1/2 the tax fee or less. More than that, I'll release a bill once per quarter, or as needed.
 

#6
ATSMAN  
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I am currently engaged to do the nonprofit returns. My "tax client" consultant will ask me accounting questions as well as tax situation that the nonprofit faces. The most recent one is about donation.


Do you have an engagement letter with the non profit? What is the scope of your services?
If you do stay within the 4 corners of that agreement. If NOT run for the hills because this will get worse and once you start getting more involved answering questions beyond your scope of services, it is a slippery slope for you and a boon to litigation seeking clients!

As a side note I stopped doing non profit tax returns because IMHO these small non profits are "cheap", don't want to pay for advice and expect you to bail them out at every turn. Every tax season I must get a few request from my existing clients to get involved in some charity that they are involved with. Some are so bold faced that they will ask a tax question that I know does not apply to their personal tax situation and I catch them in the act.

The last one was a small church that that completely screwed up the payroll, and my client was the treasurer!
 

#7
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If you failed to be upfront with fees you may have to reset expectations for future services going forward.

I would add it to the tax prep bill or bill quarterly as mentioned ITT.

If the client complains or does not want to pay, I would politely explain to them why I billed for that time (expenses, expertise, market rates, the value they received, what it would have been like without it, etc), and tell them that they can pay the invoice partially if they wish and that I would not seek collection on the remainder.

If they didn't pay the full amount of the invoice and I didn't like the client, I would pocket what they did pay me and fire them a short time later.

If I DID like the client I would discuss it and see what the client wanted to do. Pay all, half, none, etc. But again - I would be sure to provide new expectations going forward.
 

#8
TAXTAX  
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Thank you for all of your inputs. i did get on the "quick call" yesterday and answered some questions (probably for 10 minutes). At the end of the conversation, I told that my client that this type of calls for the non profit that he represented will be charged going forward. He agreed to it. Done!!!
 


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