What's a realistic number of Tax Returns I can handle during a typical busy season?

Question

I am an accountant with some knowlege of taxes. I've prepared lots of tax returns but for my firm when I worked for a medium sized public accounting firm. Now that I am in private, I would like to start my own tax practice starting in 2008. How much can I expect to charge for a basic return? What other fees can I charge? Most importantly, how many returns are reasonably able to be completed working part-time (evenings, weekends?)

Answer 1

I have worked in the tax return field for 5 years and have grown knowledge-wise over those years. One thing that I have learned is that you have to treat each and every return as if it were you own. The amount that you charge has to be based on the services that your client receives. Each client is different, each return is different, each fee will be different. As an example, let's assume that you prepare 1040EZ's for two different clients. Client one is getting a refund, he's tickled pink. But Client two owes the IRS $1500, he's not so happy.

In this scenario, Client one pays his fees, mails his return, and gets his refund. What about Client two? He'll pay the fees, but will he come back next year? You will council this client and make sure that he has enough taxes withheld so that he doesn't have a repeat of this years consequences. Educate your clients and they will be willing to pay more for your services, feed them to the wolves and they won't be back next year.

The amount of returns you do will depend on how much you enjoy doing them and how complex they are. Do not take on more than you can reasonably expect to complete. If you are mentally exhausted your clients will suffer.

Answer 2

As an accountant, you should realize that your question about the number of returns you can handle can't possibly be answered. A basic 1040EZ could probably be done, even with a state return also, in 15 or 20 minutes - OK, say half an hour to leave time to talk to the client. A moderately complex business return could take a couple days or more, especially if the client doesn't have all their receipts well-organized.

For basic personal returns, I'd find out what someplace like H&R Block would charge, since they'd be your main competition, and charge possibly a little above that. For business returns or very complex personal returns, charging by the hour would make sense.

Answer 3

I do the same thing however I was only doing taxes so I was presented with a lot of very complex tax issues. Going out on your own has some serious legal implications if you make mistakes. Don't take a client with issues you are not familiar with, it will only come back to bite you later.
Determine your hourly rate. In order to attract clients you want to charge less than the H&R Blocks etc out there. A typical 1040 with the basic schedules (A & B) should be around 150-200. You can add to that a computer charge to recover the costs of your tax programs, paper, ink etc.
Depending on what time you want to start each evening, figure about one return an evening (copying their documents[a must do], preparing the file, doing the return and reviewing). Take your time since you won't have a person reviewing it for you.
Good luck.

Answer 4

Right at 1000 varied returns in a season.