You've prepared the return, filed it successfully, and the client is happy. Now comes the part many preparers dread: getting paid. A clear invoicing process eliminates awkwardness and accelerates cash flow.
Setting Your Fees
Per-Form Pricing
Charge a base fee plus additional amounts per form or schedule. Example: $200 base + $50 per Schedule C + $35 per state return. This is transparent and easy for clients to understand.
Complexity-Based Pricing
Tier your services: Simple ($150-250), Standard ($250-400), Complex ($400-800+). Assign clients to tiers during intake based on their filing situation. This works well when you have enough experience to estimate complexity upfront.
Value-Based Pricing
Price based on the value delivered rather than time spent. If you save a client $5,000 through proper deductions, a $500 preparation fee is a bargain. This requires confidence and experience but yields the highest margins.
Invoice Best Practices
- Invoice immediately after filing. The client's satisfaction is highest right after they see their refund amount. Don't wait.
- Include clear line items. "Federal return preparation: $200" and "State return (TX): $75" is better than "Tax preparation: $275."
- Offer multiple payment methods. Credit card, ACH/bank transfer, and check. The easier you make it to pay, the faster you get paid.
- Set clear payment terms. "Due upon receipt" or "Net 15" — whatever you choose, state it clearly.
Getting Paid Faster
Accept Online Payments
Clients who can pay with one click from their invoice email pay 3x faster than those who need to mail a check. Stripe integration makes this seamless.
Automatic Reminders
Set up automatic payment reminders at 7, 14, and 30 days past due. Most clients simply forget — a gentle reminder is all they need.
Collect Deposits
For complex returns or new clients, collect a 50% deposit at engagement. This covers your time if the client becomes unresponsive and ensures commitment.
Gate Document Delivery
Some practice management tools let you withhold the completed tax return PDF until the invoice is paid. This is the most effective payment motivator — clients want their return.