You will need to set your prices so that they will be competitive with other people offering the same services, and that will provide you with enough income to cover your expenses and labor. Many people set their prices based on the number of pages that they have to fill out.
For example if a return is basic and only involves a 1040EZ with no supplemental forms or schedules the fee would be 2 pages X $15, or $30 for a basic 1040EZ return federal only. On the other hand a normal 1040 tax return for a married couple with children may include a 1040 (2 pages), Schedule A, Schedule B, Schedule EIC, and Child Care Credit form. This results in a job that involves 6 pages X $15 per page and a final price of $90.00.
When you work up a few scenarios based on the price per page that you want to charge compare it against other companies’ charges and see how you compare. You may have to adjust the price based on your experience and your market.
Advertising
Advertising for customers will be you biggest obstacle during your first season as a tax preparer. In order to attract customers away from other companies you will need to be creative and you will need to use a variety of media including website, phone book, flyers, brochures, newspaper advertisements, and networking.
You can start your advertising well before the tax season begins in order to generate a buzz about your services. Post flyers on grocery store bulletin boards, leave a stack of flyers with your employer, leave a stack of flyers at your place of worship, and hand out flyers and brochures to your friends and family. If you have children ask if you can leave some flyers in the teacher’s lounge at your children’s school. Offer special discounts for people who refer clients to you, and offer special discounts for early birds. In order to handle after hours inquiries you can and should set up a website that provides information about how to contact you, what fees you charge, what services you charge, how long it takes you to complete a return, if you offer e-filing, and what payment methods you accepts.
When you design your advertisements provide critical information about the services that you provide including what makes your service the best. This may include fast turn around time, e-filing at a reduced price, lower fees charged, and/or your expertise. Be creative when selecting layouts and graphics. Make them fun and eye catching. Use bright and contrasting colors to catch people’s attention as they pass by. Make sure that the type font is large enough to be seen from a distance and that is easy to read by all of your potential clients.