Billing Policy Statement

Bizkeeping Corp. provides various financial services, including tax preparation, planning, bookkeeping, payroll, and other services. Billing for services rendered or time spend to perform the service is an indispensable part of any business success. The collection of revenue depends on Invoicing for services provided or contracted to be rendered.

Bizkeeping, Corp. adopted both methods of billing for services. Fixed fee for defined and measurable services invoiced at completion such as tax preparation, payroll, and monthly bookkeeping, for other services such as audit and representation or tax planning and consultation Bizkeeping Corp. charges time-based on the personal qualification, experience, and whether a license is needed to perform the service.

Most tax preparers are small businesses – 37% are run by a single person, while 53% employ less than ten people.

While service provided by 37% of tax services is based on one hourly rate for all tasks required to complete the services, it provides one price for all clients and all tasks based on the provider’s fee rate regardless of the service provided. So, data entry, copying, scanning, and administrative tasks are priced at the same hourly rate of audit and representation.

 The other 53% have more services to offer and more specialized employees to perform the service based on the qualification needed to perform each service, which will provide adequate pricing based on the various tasks essential to perform the service.

IRS requires tax preparation to provide a copy of tax return to clients at the time of signing and filing at no extra charge. Taxpayers need to keep a copy of the tax return for further reference. Recently, IRS required tax preparers to perform due diligence for credit claimed by the taxpayer and to keep a copy of client papers for 1 to 3 years.

Documents such as Main tax form, Supporting tax schedule, Tax work papers, Client-prepared tax return checklist, Receipts, Bank statements, General ledgers, Documentation on income from investments, and Other relevant financial documents from the client. IRS requirement to keep client documents is an added burden on tax professionals and increases the cost of storing, handling, and securing these documents.

IRS recognized the additional burden and increased cost to prepare tax returns. Tax professionals, in turn, are allowed to pass the cost to clients. 

With the increasing use of technology, tax professionals adopted various programs to reduce the cost of services. Secured email and scanning of documents and online access reduce time spend on communications and personal visits to the tax preparers office.

A good example of technology used to reduce the client’s cost of service is to provide clients with a copy of tax returns online. Most clients with a smartphone can review sign and print paper return as many as they want at no additional charge and at the most convenient time to them.

The same application of technology is related to payroll payments and paystub, annual financial reports, corporate formation papers, and other documents.

While the cost of technology is carried by the financial and tax services providers, the client should use the technology available at no cost and avoid costly calls to tax preparers to handle a repeated request for copies of the same document available online. Access to the client secured portal, mostly available 24 hours daily.

Banks also adapted the same application of technology. Even most community banks offer online to view and download or print bank statements and documents. The client can give access to view statements to tax preparer or accountant to print or download bank statements at their convenience at no extra charge.

Papers generation clients do not take advantage of online applications due to habits and convenience. The client may choose to spend hours in social media accounts than logging in to get a copy of the tax return from even though an easy online  access portal is available at no charge.

One of the most charged fees clients have a difficult time accepting is the transaction fee to process a request. Whether it is a simple copy of tax return or to send a copy of tax return to his banker or a third party. Tax professionals are required to obtain authorization to release information, set up the third-party secured access, and upload the required documents to the portal.

 Sending a document or copy of the tax return required the disconnection of a tax preparer or accountant from the current task, and then process the client’s request. The processing fee is invoiced to clients.

Express fee for fast delivery or immediate action causes the tax preparer or accountant to interrupt his work schedule and rearrange his priority. A tax preparer may have to work overtime to perform the expedited request and to meet the upcoming tax deadline.

Clients are encouraged to take advantage of the availability of technology and the saving offered by his accountant. Also, the client will appreciate the value of prudence offered by his accountant to perform the financial task and deliver timely.

We at Bizkeeping Corp. strive to deliver Quality work at affordable Prices within reasonable Time. We will not compromise the Quality. What we could offer the client in return is to expect higher Prices if clients wanted to articulate the Time of delivery. Also, if the client wants to articulate Price, he got to allow flexibility of Time to deliver the service.

Bizkeeping Corp. employed various secured applications of technology to provide better services and client communication, increase employees’ productive time, and reduce the cost of services and deliver the service timely.

Questions and Answers:

We have received various inquiries and requests for explanations of billing in the past 27 years. I will share some of these questions related to pricing and billing.

  • We did not make money this year. Why do you charge me the same price?

The amount of work that we will do would be the same regardless if you had a gain or loss. Your invoice will not increase if you made huge profits, nor will it decrease if you incurred losses during the year. Our prices are not based on your revenue or your profit. We will be glad to provide further analysis to evaluate the reasons that lead to financial pressure.

  • I have paid a large payment to a supplier; you must give me time for your bill!

We will be happy to help you manage your cash flow and manage the billing system. It seems our invoice is too small to see. We will remind you in 5 days to include our invoice in the next payment cycle.

We offer 10, 15, and 30-day payment terms. If you need additional time to pay our invoices, please contact our office, and we will be happy to work with you on a payment arrangement. While the invoice remains unpaid, we will keep sending outstanding invoice reminders at our discretion so you may include us in your next payment cycle.

  •  I have slow accounts receivables; I need to pay you later.

We will accommodate your cash flow as a courtesy, but we may help you out with payment terms. Contact our office, and we will be happy to work with you.

We offer 10, 15, and 30-day payment terms. If you need additional time to pay our invoices, please contact our office, and we will be happy to work with you on a payment arrangement. While the invoice remains unpaid, we will keep sending outstanding invoice reminders at our discretion so you may include us in your next payment cycle.

  • Why you charge me $250.00 for a copy of the tax return?

Client tax return copies are available for no additional charges through your Canopy portal. Any additional copies or email requests are subject to additional charges. If your copy is not available in your portal, please contact our office, and we will be happy to upload it for you.

  • I did not expect you to charge for a copy of payroll run or paystub?

Payroll summaries and employee paystubs are available for no additional charges through your Canopy portal. Any additional copies or email requests are subject to additional charges. If your copy is not available in your portal, please contact our office, and we will be happy to upload it for you.

  • I am paying the monthly fee; why you charge me for tax preparation?

Our offer to provide a monthly fee may include one or more services. Please review your agreement and our proposal details. Some tax returns are more complicated, and the estimated preparation fee includes only the main forms. Any additional forms will be charged if not covered by the estimated monthly fee.

  • My payroll is simple for 2 employees, what the price if I hire 2 more employees?

Most of our pricing includes up to 5 employees. If you add 2 more does not mean the price will double. Processing, paying taxes, and direct deposit is offered at no charge regardless of the number of employees or subcontractors.

  • I have been with you for more than 20 years, but your increase is huge!

We appreciate your loyalty, the current price gap between 20 years or more ago is over 40% due to inflation. We must reevaluate our prices based on the current rate and the additional services that we provide.

  • Other people charge less for tax return preparation.

37% of tax preparers are individuals working from home or one desk office. They provide preparation on seasonal bases. If compliance and all year availability for additional services and consultation is not a priority, it might be appropriate to downgrade services to preparation only.

I asked your staff to do this as a favor, why you send me this bill?

Employees may extend support by expediting the services, but their time is paid by the corporate employer. They are required to bill for their time and services provided without preauthorization needed. If a client asks for a service to be rendered, they can complete the request and bill it as long as it is within the service provided by the services agreement.

Employees are committed to do an excellent job and comply with company guidelines are to be trusted to prepare your tax return more than others.

  • I asked you to send a copy of tax return to the bank, why did you charge me again for a copy of tax return?

If your banker is requesting tax return copies, it is your responsibility to provide it to them. If you would Bizkeeping to handle this request on your behalf, this is a separate process that will incur additional charges. Written authorization is always needed before releasing tax information. Client tax return copies are available for no additional charges through your Canopy portal. If your copy is not available in your portal, please contact our office, and we will be happy to upload it for you.

  • You have processed my payroll late; my employees did not get their check on time!

Payroll timesheets are to be sent to Bizkeeping at least 2 days before your desired check date. If we are missing any information related to the process, your payroll may be processed late or processed partially. To ensure this does not happen, please make sure to send complete information as early as possible.

  • One of my employees did not get paid!

It is the client’s responsibility to inform Bizkeeping Corp of any changes to employee information, including banking information for direct deposit. Any failure to inform Bizkeeping before the payroll process may result in your employee not being paid or the payment is going into an incorrect account. To ensure this does not happen, please make sure to send complete information as early as possible.

Employees are required to report changes of bank account for direct deposit to go through the banking system. We depend on an employer to communicate to us any changes that may affect payroll, including ACH information.

  • Deduction for payroll taxes is too high!

Bizkeeping does not control tax rates; this issue is out of our control.

  • Some of my employees did not get W2s, but I received this bill for replacing it!

It is the client’s responsibility to inform Bizkeeping Corp. of any changes to employee mailing addresses. All address updates must be made before the year ends to ensure all W2’s are issued correctly and arrive at the employee’s homes in a timely manner. Furthermore, all W2 copies are available to you through your Canopy portal for no additional charges. You are encouraged to download and provide a copy to your employee at your convenience. Any additional copies, email, or re-mail requests are subject to additional charges.

  • I received a notice from the IRS regarding payroll; why you charge me for correcting the issue?

Payroll by Bizkeeping is guaranteed to be penalty-free for our clients; However, any issue related to incorrect information provided by the client is a separate issue that will be subject to additional fees. Most of the time, issues can be corrected directly with the IRS without any additional charges. 

  • Why do you charge me an hourly rate for replaying to the IRS letter? You do my accounting and tax preparation!

IRS letter for inquiry or additional information or an audit is not included in tax preparation or bookkeeping. We can’t anticipate or predict what the IRS will ask for. However, we prepare tax returns and ask more questions and review income and deductions before the IRS does. We encourage taxpayers to sign a power of attorney to receive a copy of communication sent by the IRS to clients as extra security. We would tackle IRS issues if the client forgot to inform us of the IRS letter or notice. IRS send communications directly to a client business or home address. A power of attorney signed by the taxpayer allows us to receive a copy of any correspondence sent to the client for the specific form or issue and for the years authorized only.

  • I have heard that people leaving your services because of your high prices?

We are pleased to keep all clients satisfied with our services and our fees as well. Some clients not in growing mode or at a business decline cycle. We elected to downgrade their services to adequate service to their new situation.

We worked with our clients in this situation by allowing a discount and installment to get them current with their past-due accounts. Many of our clients come back when they try a basic level of tax service.

  • If you charge more than my neighbor’s tax preparer, would this be price gouging?

There is no influence over client choices to select one tax service versus another. There are over one 1.2 million tax preparers in the United States. They come in all shapes and sizes. They range from licensed professionals to people without formal training who prepare tax returns part-time.

  • Why did you not tell me that I will have a penalty for underpayment of estimated tax payment?

The taxpayer is responsible for understanding his or her obligation. This question is acceptable from the first-time filer. IRS waives penalty for not paying the estimated tax if you are the first time filer.

  • I received a refund check and cashed it, and now the IRS has assessed a penalty for cashing it?

The taxpayer is responsible for understanding the refunded amount and the reason for it. Not every check from the IRS is correct. The IRS urged taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encouraged taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately.

  • You did not tell me that you received a notice from the IRS regarding this issue!

We are obligated to serve our active and current clients. We contact prior clients as a courtesy. A client should always keep his or her address current with the IRS. Change of address form 8822 should be filed if you moved to a new address.

Find the most suitable tax professional for you:

 If you have a simple tax return with W2s, the question of what level of tax pro you may need is simple to answer, However, if you have a business, multiple sources of income or having major changes in your financials, you may need a tax pro to prepare your tax return. Tax Pro may provide assurance in compliance with the tax law, qualify deductions, and provide after filing assistance and services such as:

Tax advice and planning: Help your business save on taxes now and plan for future tax situations — answers to immediate questions and concerns. Having an available resource and knowledge is priceless.

Audit and assurance: Help find any problems with your tax returns before the IRS does.

Management and consulting: Serve as your chief financial officer (CFO), help with budgeting, risk management, and preparing financial statements for shareholders.

Payroll administration: Avoid payroll mistakes and penalties. Insures everyone gets paid on time, all the payroll withholdings and taxes are handled correctly.

Bookkeeping: Bookkeeping and document gathering is the base of any accurate and supported tax return. It provides completeness of reporting of revenue and full advantage of deductions.

Outsourcing: Handle invoices and accounts receivable, make sure the bills—like rent and utilities—get paid on time, and pay your vendors on time.

What other considerations to look for in selecting tax professionals?

1. Qualified and have the right certifications.

  • Enrolled Agent: An enrolled agent, the highest credential awarded by the IRS, is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. Only enrolled agents, attorneys, and CPAs may represent taxpayers before the IRS.
  • Certified Public Accountant (CPA): Certified Public Accountants are tax advisors who have received state certifications for practicing accounting.

Enrolled Agents and CPAs both go through extensive training and testing and continuing education to maintain their credentials and stay up-to-date on tax laws and regulations so that they can better serve you. Someone with just a preparer tax identification number (PTIN) isn’t going to cut it.

2. They are available all year.

Nowadays, there are a bunch of part-time, fly-by-night tax preparers popping up during tax season only to disappear once they file your tax return, never to be heard from again. Not even on a Christmas card.

Like we said, things happen throughout the year that can have a big effect on how you file your taxes for that tax year. When life happens, having a reliable tax pro who will pick up the phone to answer your tax questions in September (not just January through April) can make a huge difference.

3. They understand your financial goals.

It helps to have a tax advisor who is on the same wavelength as you. That means they take the time to learn about you and your financial goals, so they can give you tax advice that will drive you closer to reaching those goals.

4. They make time to answer your tax questions.

Your tax advisor should always be ready to sit down with you and help you answer any and all of your questions about your taxes. That’s what it means to have the heart of a teacher!

5. They are proactive in communicating with you.

You don’t just want somebody who puts a rubber stamp on your return and walks away. That’s just lazy. You need a tax pro who is going to take the initiative and keep an eye out for things you might need to change for the upcoming year.

6. They can help you with small business taxes.

If you have a small business, you’ll be glad you have a tax pro who has experience working with small-business owners and can help you navigate through tax law changes, estimated taxes, and which deductions you qualify for as a business owner.

7. They can help you with your taxes next year and the year after that.

Having a tax advisor, you can turn to year after year, can save you from having to explain the same things over and over again to a new random tax preparer every spring. Who has time for that?

Besides, it helps to have a tax advisor who knows you and your tax situation well enough to give you solid advice and strategies to help you reduce your tax bill.

8. They can be trusted with sensitive information about your finances.

It’s important that you find a tax advisor you can trust with all the nuts and bolts of your financial situation. Trust is the foundation of any strong relationship—including your relationship with your tax pro!

9. They understand your business and your financial needs.

It’s important that you find a tax advisor who understands business in addition to tax law. State and general business practice knowledge is also an essential part of advice.

10. They provide advice and solutions and know-how to execute it.

Do you get realistic advice or just a daydream of eliminating your tax liability? Your tax pro should be able to help you out in achieving his advice to you. Giving you steps or starting point, introduce you to bankers who can assist you and your business financing and cash flow.

Tax pro may recommend other providers for services that he does not provide. Referral saves you hours of research to find qualified service providers and avoid trial and error.