CornerstoneCPA wrote:My cheapest 1065 is a three member partnership--two passive--with one rental property and very clean records. I charged $620 last year. It'll probably be bumped up to around $650 this year. I only charged $495 in 2018, which was way too low. I raised it to $591 in 2019 and then $620 in 2020.
My cheapest 1120S was $575. It'll be bumped up to $600 this year. My higher end 1120S returns are $2-4k due to having to convert a trial balance into financials for tax prep and make adjusting entries.
Interesting. My general rule is that a partnership return will have a higher fee than an equivalent S corporation just because the layers of complexity of a partnership are inherently higher than with an S corporation. I assume that none of your S corporations are as simple as that partnership?
One thing I do is make sure no tax return ever stays a constant fee year-to-year. That just traps the tax firm.
+1000. The biggest mistake in pricing that my previous employer did was only doing fee increases every 2-3 years. Inevitably you'd have clients who bought a rental property in a fee increase year and get pissed off at how much the bill increased. So then there would be the pressure to lower the fee that year.
In my practice every tax return gets a price increase every year, even if only $5, unless the tax return gets simpler.