Increasing the Value of Tax Return Preparation

Source: Firm of the Future

In response to a question from a sole practitioner, Ron Baker gave him advice on how to distinguish his tax return services from those of H&R Block — and therefore be able to increase the value of and charges for his work. Baker advised him to create three levels of service like the following:

• For the lowest level of service, which he labeled “Green level,” charge a competitive price but more than H&R Block simply because the sole practitioner is a CPA and CFP.
• The next level up might be the “Gold level,” in which tax planning and unlimited phone calls are included.
• The highest level might be the “Platinum level,” which includes review of financial or retirement plans. The value of this to the client should be significantly more than the cost of providing it.

The key is to create bundles of services with value, and there are many variations of the foregoing example.

For the complete article, read “Ask Ron Baker: Tax Return Pricing for Sole Proprietors.”