We recently gathered data from hundreds of tax professionals to find out how tax firms are pricing their tax preparation services in 2020.
1 min read
If you're a savvy business owner, you've probably wondered if you're charging the right amount for your tax preparation services. There is a lot to consider when determining what your prices should be, but a great place to start is looking at what average tax preparation fees are across the nation and in your state.
We recently conducted a survey where we gathered data from hundreds of tax professionals about how they price their tax preparation services for both individual taxpayers and businesses. We also compared the data we gathered this year to data from our 2018 and 2019 pricing reports (which also included information from the National Association of Tax Professionals and the National Society of Accountants). Here are some of the highlights:
The average national fees for common tax preparation forms are as follows:
Itemized 1040 and state return: $302
Non-itemized 1040 and state return: $221
1040 with a Schedule C: $400
Form 1120: $755
Form 1120-S: $721
Form 1065: $682
For itemized 1040s and a state return, that's a $29 increase in fees since 2018. Fees for preparing a non-itemized 1040 with a state return have gone up by $45 since 2018, and fees for a 1040 with a Schedule C have gone up by $40 since 2019.
Another interesting thing to note is that flat fee billing has become vastly more popular than hourly billing with 81% of surveyed tax professionals saying they primarily use the flat fee method.
North Dakota averages the lowest fees for preparing an itemized 1040 with a state return at $158 while Hawaii is the highest at $483. Other states in the top five for the lowest fees include Delaware, Rhode Island, Tennessee, Connecticut, and Nebraska. Other states charging the highest fees include Washington, Kentucky, Louisiana, and New York.
For non-itemized 1040s with state returns, Delaware comes in at the most affordable for taxpayers at $125. Washington charges the highest fees at $373. Other states with the most affordable fees include Alabama, Rhode Island, North Dakota, and Nebraska. The other four states charging the highest fees include Hawaii, Kentucky, New York, and Massachusetts.
To find out how your fees compare to your state average for both individual and business tax returns, check out our complete 2020 Tax Prep Pricing Guide. You'll also find information for how fees differ based on firm size.
Stay up to date with all things Canopy. Join our email list for offers, and industry leading articles and content.
Explore more of our recent Articles, User Stories, and Ebooks.
4 min read
4 min read
Canopy takes the headaches out of client management by offering a way to keep client info organized.
I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.
This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.
The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.
Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.
It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.
Submit this form, and we will be in touch soon to give you a custom demo.
Set a time for one of our product specialists to give you a guided tour practice.