Owned and published by AE Tax Advisors • Helping business owners find a tax professional. How listings work ↗
T↗Tax Strategist
Directory
Your shortlist 0
Pricing and proposals

How to Compare Tax Advisory Proposals

Build an apples-to-apples comparison without reducing your decision to a headline fee.

Normalize the scope first

Two proposals can use the same title and describe very different work. One may cover a single planning review, another a year of meetings and filing. Before comparing fees, create a common list of entities, tax years, jurisdictions, and services. Ask each firm to mark every item as included, excluded, or separately quoted.

Do the same for implementation. A recommendation, assistance with carrying it out, and confirmation that it appears correctly in the records are separate tasks. If the proposal does not describe those tasks, do not assume they are included simply because a salesperson discussed them.

Expose the cost drivers

Ask which events change the price: additional entities, messy records, new states, a sale, amended filings, or an urgent deadline. A fixed fee can be useful, but only when the boundaries are understandable. Request the approval process for work outside the original scope.

Monthly pricing deserves the same scrutiny as an upfront fee. Confirm the commitment period, renewal terms, cancellation rules, and access after termination. Compare the full committed cost for the relevant period rather than multiplying a monthly figure without reading the agreement.

  • Separate third-party legal and specialty-study fees.
  • Confirm whether filing fees or software charges are additional.
  • Ask whether prior-year review includes amended return preparation.

Compare evidence of delivery

Use the proposal interview to test operational maturity. Can the firm identify your first milestone? Does it explain how missing documents affect timing? Will there be a written plan and an implementation log? Who handles unresolved questions? Clear answers reduce uncertainty in a way that a large projected savings figure does not.

A hypothetical savings illustration should disclose assumptions. Treat it as a discussion tool, not a guaranteed outcome. Ask what information the firm must review before determining whether the illustration is relevant to your circumstances.

Choose the agreement you can administer

The best proposal is understandable enough for your team to manage. You should be able to tell whether a milestone is complete, whether a request is within scope, and whether the fee has changed. If you need repeated explanations before signing, ask for a revised proposal.

Document the reason for your choice. That record helps your controller or operations lead implement the engagement and gives you an objective basis for the first service review.

  • Next step: create a comparison table with scope, ownership, timeline, fees, and exclusions.

Sources & further reading

    More buyer research

    OUR FEATURED PROVIDER

    Looking for year-round
    tax advisory?

    Discuss your business, your existing tax team, and the scope you need with AE Tax Advisors.

    Explore AE Tax Advisors ↗