This is kind of both a general, financial and tax musing. It is about how I feel is the best way to bill for my services. I have always advocated a billing structure based on setting up services as ‘projects’ then billing a flat fee for each of those projects. I have never liked billing on an hourly basis – clients sometimes feel you are spending more time to ‘pad’ the bill. I would rather calculate the fee for the project using my experience and including all services (including telephone time) in the fee. The fee is what it is and I know what I am receiving for my work, plus the client can budget based on what is to be paid. Accountants sometimes get a ‘taxi driver’ mentality (start the meter when you get in the cab) which I feel does nothing to promote the profession or satisfy their clientele. Here is an article about this:http://www.accountingtoday.com/news/Accountants-Move-Toward-Value-Pricing-Model-60705-1.htmlThis results in your clients knowing what to expect and many will recommend you to their friends and associates.
Brian’s Tax Musings
Starting in 2012 banks have to report credit card income on 1099s for receipts in 2011. There was a 28% withholding requirement on inomce (backup withholding) if the bank didn’t get a valid taxpayer ID. Now that will be put off until 2013. Here is an article on it:http://www.accountingtoday.com/news/IRS-Postpones-Credit-Card-Withholding-Requirements-60665-1.htmlThis gives businesses a year to get it right before the backup withholding starts.
Brian’s Tax Musings
We have all been hearing talk about Super Committee (No not Stupid Committee) coming up with budget adjustments of 1.2 trillion dollars. WHat have they done are how are they doing? Here is an article about it:http://www.accountingtoday.com/news/Congressional-Supercommittee-Takes-Tax-Reform-60747-1.htmlWe will see if any part of the government or a committee they put together can agree on anything.