Tax preparers charging $1,000 for a business return are underpricing. At $40 an hour, a 20-hour return costs $800 in labor alone, leaving almost nothing for overhead and profit. Low prices force you to hire cheaper staff and lose clients to firms that charge more.
If you're only charging a thousand bucks to prepare a tax return and you expect to hire high quality employees, that's just ridiculous. So a really good tax preparer will probably cost you about $40 an hour, and for a moderately complicated business return, they'll probably spend about 20 hours working on this thing. And so you're probably going to end up shelling out 800 bucks just to get the work done, leaving you with very little margin. And so you might try to hire somebody for a little bit cheaper, but they take longer, they need more hand holding and they don't do as good of a job and this pisses the client off so they don't come back. And instead next year they go with a more professional firm who's going to char $3,000. They use higher quality employees and they keep a happy client when all is said and done. Not to mention they're way more profitable on their service. If you would have just had the balls to charge a higher price, you would have made more profit and you would have kept a happy client for years to come.
How This Bookkeeper Scaled From $30k/mo → $92k/mo in 2025 [LIVE WORKSHOP RECORDING]
