[mhueycpa]

Looking to get Licensed by early to mid 2016, once licensed I want to open my own practice as a side job. I’ve been working in public accounting since 2008. There are currently no CPA’s in the area in which I would open an office but there are two Tax Preparation places (Liberty Tax & HR Block). The area is a low to moderate income area (low 30s to 50s) but young professionals are starting to move in so I think the general income of the area will rise over time. With that said, how much do I charge for my services? Located in NYC outside of Manhattan.

THE 300 CLUB WILL DO JUST FINE!

[Anonymous]

Your standard rate should be at least $250, maybe even as high as $400. NYC is pretty rough, though. There are parts of town (and practice specialties) where you can get $750/hr. There are other parts that $300/hr just isn't going to happen.

If your main competition are those bunk tax shops, you should probably have fixed pricing that is just a smidge higher than the competition.

Set up a pricing schedule with fixed prices for each IRS form. Do any supporting schedules and business returns by the hour.

[tomq04]

Seriously?!? I must be hanging out with the wrong crowd. My po-dunk city wouldn't support that for individuals. There are some big time cpa/lawyer combo's that charge > $500/hour, but even the big firms aren't going over $350/hour for any but top partners time. $150-250 is pretty standard for well established firms, not side business one man shops.

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[Anonymous]

tomq-

Come to the Northeast where car mechanics charge $150/hr.

I'm billing out at $200/hr. with four years experience. The partners here are getting $400 and we aren't in NYC.

We even had one engagement where we were getting $975/hr.

[mhueycpa]

Thanks Bill!. And I'll second the come to the NE comment. Stuff just seems to get more expensive once you cross the state boarders around here!

THE 300 CLUB WILL DO JUST FINE!

[Anonymous]

No problem mhuey.

I'm actually from Jersey, so I think my advice is reasonably relevant, but ricing NYC can be tricky if you're looking to be the local tax guy. Two miles can mean the difference between Russian immigrants (with bonnets and bed sores) and Russian oligarchs (with yachts and escorts).

If I were you, I wouldn't accept any less than $250 for my services, maybe even $300 in NYC (if you go with fixed pricing, you should be able to calc back to that). Most sole practitioners around me shoot for $250 and I'm in South Jersey. I've worked on special projects with a few of them in my day and knew their rates.

[romajoon]

Great discussion topic. Any advice for someone in California with corporate finance and investment (VC) background and will like to consult on the side. Any ideas on rate?

AUD 2/25/14 - 82
BEC 4/14/14 - 82
REG 7/5/14 - 66, 80 (11/30/14)
FAR 10/13/14 - 76
ETHICS - PASSED
EXPERIENCE - DONE

[Author]

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