A new Web site aims to establish a competitive bidding system where tax preparers can compete for clients.
The site, Prosado, allows taxpayers to create a free account and submit basic information about their tax documents. They can then search through an unlimited number of tax preparers and select a match based on location, years in business, languages spoken, education level, and star ratings from other Prosado customers. No personal information is exchanged until a client accepts a tax preparer’s bid. If, after accepting a bid, the client isn’t happy with the preparer they chose, Prosado offers a cancellation policy.
Tax preparers join the site by paying an annual membership fee. They then have the ability to bid for the best price to complete a potential client’s tax return, and control the amount they bid. They can also see the current lowest bid to determine if they would like to rebid.
“We like to stress that Prosado is about the best bid for the individual and not necessarily the lowest bid,” said Prosado CEO Glen Ross in a statement. “Some people are very concerned about a tax preparer’s education level or his/her years in business and are willing to pay a little more for that comfort. This is what Prosado is all about.”
Prosado is beginning to market its services to tax preparers and will be rolling out a full campaign to both preparers and consumers in the weeks ahead.
For more information, visit www.prosado.com.
7 Comments
I've quoted fees over the phone for the last 20 years and have never had a problem. In fact, I use websites like AngieList and get probably 20 new clients a year through it...from all over the country. Never had a dead beat or a dishonest client once. I suppose it could happen, but hasn't happened to me yet. I'll give this a shot.
Posted by: philh214 | December 28, 2012 2:20 PM
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I signed up for the service since I could do it for free. I only have about 80 clients and think I will have time if all goes well. Since I have nothing to lose ($500), I can throw in the towel if it is not what I want to do or the clients is not the type of clients I can handle.
Posted by: born2win | December 28, 2012 1:44 PM
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Not only do you not know who you are dealing with, you cannot know exactly what you are getting into. I made the mistake once of quoting a price to do a tax return - the taxpayer was retired and said she had "justa little bit of interest income" - over 100 1099INT's plus almost 200 1099DIV's and a 1099B with capital transctions that seemed to go on forever.
Then there is the person who accepts your bid but refuses to comply with the laws or, worse yet, tries to get YOu to break them for him.
No thanks, I will meet with the client face to face, look at the documents, determine what has to be done to correctly file the return and THEN quote a price. I have told many a voice on the phone over the past 25 years that I cannot quote a price over the phone any more than a contractor or auto mechanic can quote a price over the phone and for the same reason - I need to know what is involved first.
Posted by: Flyingifr | December 27, 2012 7:05 PM
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While the website may not think it's about the lowest price, I can guarantee that the prospective client will be thinking that. Those aren't the kind of clients I want.
Taxpayers already shop around which is why I give no prices over the phone or email. They must schedule an appointment to meet face-to-face.
Posted by: Chrisbry | December 27, 2012 1:19 PM
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I took a look at their FAQ and this is mentioned. You can get out if you have to.
Posted by: philh214 | December 27, 2012 10:53 AM
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Interesting in theory. Is there an "escape hatch" for the preparer? The same way the preparer may not be acceptable to the taxpayer, the taxpayer may not be acceptable to the preparer and this may not be known until the bid is accepted and the preparer receives the tax information.
Posted by: hhoff0389 | December 27, 2012 10:05 AM
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At first glance, this doesn't seem like a very good idea for tax preparers. You will really have no idea who you are dealing with. I would love to hear from some preparers who try this.
Posted by: Stephen S | December 27, 2012 8:21 AM
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