Like several industries recently, the accounting industry—specifically public accounting has experienced a “talent shortage.” This shortage has prompted many public accounting firms to restrict the number of new clients they take on or increase their minimum fees. Some firms have stopped taking new clients entirely. Some firms’ level of service has suffered as a result of there being fewer CPAs. Now any available CPA has more clients meaning less time per client, which can lead to less personal service.
For our ongoing financial planning clients, tax preparation services, as well as other tax advice, are included as a core part of our overall services. Bluestem clients do not need to be concerned about who will prepare their tax return, as we are happy to do that for them!
However outside Bluestem, Champaign-Urbana has been affected by the state of the public accounting industry. Many local firms have undergone the patterns discussed above and we’ve had many from the community reach out to inquire if we prepare returns for those who are not retainer clients (we do not).
In this environment, as a consumer of those services or one looking for a new CPA or tax preparer it can be difficult to know where to turn. What to do if you are in this position?
1. To shop locally, start early: No later than January, contact local firms to inquire if they are taking new clients and what you can do to “reserve” a spot. Ideally, you may even reach out in the fall prior to preparation season.
2. Don’t forget—You can find accounting and tax preparation services online!
⠀⠀⠀⠀⠀a. Inquire with friends, family, colleagues who may not even live locally and find out if they are happy with their current provider. If so, reach out to their accountant (early as you can) as well.
⠀⠀⠀⠀⠀b. Consider searching the internet for tax preparation, perhaps even a larger market than C-U, like Chicago. Look for a modern website, with multiple CPAs listed as professionals working there, ideally with references to remote preparation.
3. Expect to pay more. Gone are the days of the $100 tax preparation fee by an actual CPA. If you have enough complexity to warrant the attention of a CPA, you should know that these days it is very likely you can be expected to pay $500 or more for even a “basic” return. On the same note, know that prices can increase each year and will likely not stay fixed at the amount you paid during the first year.
4. Self-prepare: every year software for self-preparation improves. This is more time intensive but may result in fewer headaches if you are unable to secure a spot at a CPA firm or have had a bad experience in communicating with the firm you recently used.
Many industries in the last few years have had their services or products impacted by supply-chain issues or labor shortage issues. The world of public accounting, tax preparation, and CPA services have been no different. Don’t wait until the last minute to come up with a plan to find help with tax preparation!