The wild thing about preparing individual taxes is you can go from 1 client who shrugs off owing $500,000 to the next that's angry they owe $60 and wants to rerun it on their own using turbotax.
The general public does not understand how much the quality of return prep plummets at the deadline. Preparers have been running on mental fumes for weeks. The absolute best thing you can do right now is file an extension.
I've seen an increase of prospects who complain about not being able to contact their current CPAs and then accuse me of price gouging after I give a quote.
A guy doing 3 returns, ann acc & payroll for $1,000 ain't gonna answer for a week but I will for $10k.
Pick your poison.
The accountant lifecycle
Step 1: work 3,000 hrs/yr
Step 2: drink heavily to numb the pain
Step 3: hit breaking point
Step 4: raise prices & fire PITA clients
Step 6: reclaim your life & work 1,500 hrs/yr
Step 7: buy boats & travel to celebrate your freedom.
#7
may be just me.
Prospective client called with a "simple return" that includes his s-corp, partnership, 2 trusts and the little kicker that he personally generates $500k in RMDs and $1mil taxable investment income. Not happy with his current CPA's service who he pays drumroll please....$3,000.
I disengaged a business client and the successor CPA asked for paper copies of everything(GL, multiple returns, payroll). It was a stark reminder that we're out here pushing AI but there's still huge amounts of small firms retaining paper copies of everything.
#taxtwitter
A client(now former) took a screenshot of my post and sent it to my entire team complaining about my lack of professionalism and work ethic. It's wild to me that people really do expect their accountant to work 3,000 hours per year.
Spent 7 hours on a complicated family partnership with multiple brokerage accounts, K-1s and real estate. Could not get it to balance to save my life.
Send it to my dad for a 2nd set of eyes and he calls 5 min later...I didn't close prior year retained earnings 🤦♂️🤦♂️🤦♂️
I get frustrated with clients but then I go to a youth soccer game and watch parents berate a teenage ref and all of a sudden my clients don't seem so bad.
We've done 10% plus price increases for 5 years w/ near zero attrition.
I'm still terrified every client will leave. Objectively raising prices is easy but emotionally it's hard.
#TaxTwitter
likes to hate on 1040 farms but after 3 straight days of working on our most complicated returns I yearn for the simplicity of cranking out easy 1040s all day...and realizing more than I do on the complicated returns.
An IRS agent just asked a room full of CPAs to raise their hands if they have a WISP. Based on the response an astonishing amount of CPAs did not read their PTIN renewal.
Me in March: I only worked 14 hours and finished 20 tax returns. I'm a worthless lazy idiot.
Me in August: I opened the tax software and *think* about opening a return. Good job buddy, you're really crushing it today!
Got the 'ol "it's just a simple 1040 with a w-2" line...sure
Plus:
2 foreign accounts
4 brokerage accounts
1 Schedule E
1 Schedule C
1 Schedule A
Time to go back on vacation.
All timely submitted 10/15 work will be done this week. Does it mean the filing season is over? No
It does mean I will be at the Tigers ALDS home games next week and not feel guilty about procrastinating client work not being finished.
My dad's a retired CPA who hasn't had a working camera phone for years. He told me he's getting a new phone just so he can send pics from the beach while I'm working to fund his Social Security. I can't be mad since he did miss all our spring breaks to work tax season for 30 yrs.
I'm going to put a chart in my email signature showing the increase in our software costs year over year. When a client complains about price increases I can simply say "see below."
It's April 11th and I have a new leader for surprise information.
Client has...
- 250k crypto income
- Paid no estimates
- Moved to Thailand
Once I got done laughing I told him to check with the firm that does his crypto accounting bc I couldn't prepare this thing.
CPAs scrambling at the cpe deadline: A Tradition Like No Other
But really why do I need 8 A&A credits to do a million tax returns a year? Should have mandatory therapy instead for our 1040 chop shops.
I assume clients don't mind price increases but I'm over here refusing to pay $6.99 for a Peacock subscription to watch the NFL playoffs. It's the principle!...oh no, I am turning into my own 1040 client.
#taxtwitter
#PeacockTv
CPAs will humbly learn from other CPAs but turn their nose up at people from outside the profession. It's time we acknowledge there's lots of great business owners outside our profession. I'm not saying to turn into McDs but we're foolish not to learn outside our bubble
In the past week I talked at 2 small colleges and had 7 students who were previously NOT acc majors reach out to talk more 1 on 1.
I'm not convinced the pipeline is a huge issue but I firmly believe we're in one of the greatest professions and have a responsibility to share that
We had a team meeting to discuss ideas for smoothing tax season and 2 people on our team who have never done taxes volunteered to learn taxes. I definitely screw a lot up but man am I lucky to have the team I do.
Taxes are easy. People are complicated.
Today I met with:
1 Terminally ill client
2 Elderly client and daughter dealing w/ aging issues of falls, rehab stints, hospital stays etc
3 Young couple excited for 1st baby
All meetings ran long, had zero to do w/ taxes & drained me
Talked with a sch. C today who was genuinely concerned he'd get in trouble with the IRS bc his income dropped from $85k to $60k. The drop was primarily due to bank fraud.
1. Our tax system may be messed up with this level of genuine fear
2. Client fears are not always realistic
Client: "Take your time but get it to me by the deadline."
Me: *hysterically laughing like the Joker* "There's no chance we'll have it done by the deadline."
For CPAs who have or considered getting your CFP, what were your reasons and do you feel the effort was worth it?
I currently have my PFS and am debating whether the market recognition of the CFP is worth getting.
@MikeSyl36625988
A big challenge is good QC in small firms. Often there is only 1 person capable of being a true reviewer and they may spend most their time meeting with clients and directly preparing returns. As good as we think we are we've all looked at a py return we prepped and thought wtf!
It's 2pm on a sunny Wednesday in Michigan and this is what 4 CPAs I texted are currently doing:
1. On their boat
2. Bike ride with their kids
3. Smoking a cigar and drinking bourbon on a patio
4. In the pool waiting for his kids to get out of school.
We have a pretty great gig!
Price Bros: accountants who tell others "just raise your prices. It's easy!" They can ignore operational, mgmt, hiring, training & workload issues bc "bro, all you have to do is raise prices."
Someone should open a firm just doing kids' returns.
Oh, you want your high school kid to learn about taxes? Great, I've got a guy.
You're 30 yr old "kid" doesn't know if he has 3 or 4 W-2s? I got a guy.
Your kid "only" taught in Korea and worked in 2 states? I got a guy.
An intern said "NO CAPS" to me and I thought he was upset about my all caps Teams messages. Turns out it's youth speak for "no lie." Who says we're a stale profession?
Went full boomer and accidentally retweeted my own tweet. Then deleted the retweet only to learn it deletes the original too. Bye bye influencer dreams.
Ever wake up and think about how great of a profession we're in? Maybe it's the holiday weekend talking but man am I grateful for the relationships, flexibility and, let's be honest, the money, the accounting profession has provided.
We're on-boarding our 1st fillipino employee when I return from vacation so I'm taking the 15 hour flight to learn about their culture. I was admittedly apprehensive about hiring off-shore but taking the time to learn more about their culture is making me more confident.
I'm at the airport chatting with an attorney and upon learning I'm flying Spirit his response was "I'd ask why but you're a CPA so it checks out."
I might be part of the image problem😂
We often take care of our clients at the expense of our team. Changing client expectations and pricing is not selfish. It enables us to create a great environment for our team.
I forgot my hourly rate today.
Had a client ask me for a one-off project and it had been so long since I've done anything not on a fixed fee I completely blanked. Legit had to check our billing software.
It blows my mind clients can't follow through with our direction...but then I go to my dentist and they ask if I've been flossing...uhhhh I tried but ya know
All the talk of "fixing" public accounting seems to be about reducing workload. What happens to the over achievers? Can we design a system that adequately addresses work/life balance AND rewards high performers?
My thoughts after I hit my 2 day relaxation limit.
My dad followed the traditional public accounting path and raised 3 now CPAs. BUT in that environment he challenged us to find a better way. He grinded to give us the opportunity to create a better life in this profession.
For that I will forever be grateful.
"Where can I get my taxes done for relatively cheap. Current tax person wants $200. Which is out of the budget. Turbo tax is a little too confusing."
Posted in my neighborhood FB group. There's still a big disconnect between our perceived value and the public perceived value.
A friend of mine asked me for the status of his return. I told him it wasn't done bc I was deep in a rabbit hole of researching how to live on a boat.
He's now sending me boats and seems to have forgotten about his return. Anybody out there lived on a boat before?
After spending 3 days at the AICPA Personal Financial Planning conference I feel like I can say CPA Financial Planners are happier and less stressed about their practices than tax firm owners. Definitely helped reinforce my shift towards pfp work.
#TaxTwitter
I'm staying at a $53/night Super 8 and it's exactly what I expected: A little musty, dirty but probably doesn't have bed bugs.
This must be how people feel when they get their taxes done for $53 by a barber/tax preparer.
Any Crypto tax accountants on
#TaxTwitter
? Need help reconstructing basis due to an IRS matching notice for $200k of sales. Client of course has no basis records.
Our firm finally got rid of all our 5500s. We only had a few left this year and I referred them to TPAs we use. One client asked if she could do it herself and I said "it's possible but I really don't recommend it." She's going to try it. God bless her.
We had a visitor today but he didn't seem as excited about deadline day as the rest of us.
10/10 recommend having a baby in the office on deadline day. Nobody can yell at you with a baby in your lap.
I do think intuit is being sleazy with their data mining but generally agree. If we, as small firms, can't deliver a better and more personalized service than Intuit then we deserve to lose.
@MikeSyl36625988
Intuit is literally throwing the profession a lifeline by taking the DIY clients who are cheap off our plates. This is how we solve the pipeline issue by removing the mundane low value work and take on energizing work that inspires the next generation to joining the profession.
My professional skepticism failed me today. I asked my nephew if he could ride in the front seat and he said yes. Thankfully we had proper internal controls in place for my sister-in-law to yell "Are you kidding me, Matt? He's 5."
Gotta watch those unsuspecting fraudsters.
Letter submitted to MI Treasury 8/29/23
Treasury acknowledged receipt 6/12/24
Treasury will take 45 weeks to process from date of acknowledgement.
2 YEARS to process correspondence.
HOW IS THIS ACCEPTABLE?!?!
Client spent $250k on divorce which doesn't address filing status, dependents or allocation of income for joint accounts. Figures he'll spend another $5k fighting these points... my takeaway: I should've been a lawyer
Call me crazy but I miss paper checks. Sure, getting a big ol direct deposit the 1st of each month is nice but is it really better than having a fat stack of checks to flip through? It's the same with physical file folders. Cranking out a stack of returns 3' high just feels good.
Prospect is part of a partnership w/ s-corp as a shareholder he uses to pay his 3 yr old son for modeling and wife for "business consulting." Thought 20k for son and 100k for wife was reasonable. I've heard of these tiktok bros but never encountered one in the wild.
In today's episode of things I miss in public accounting:
Stacks of files in people's offices. There's a method to their system unbeknownst to anyone else but perfectly organized to them. Sure, there's a file room but who's got time to walk 10 ft in between 14 appointments a day
I was mad about the IRS extending the Detroit area tax deadline but decided it was a good opportunity to book a flight to Vegas for March Madness opening weekend. Never thought I'd get the chance to experience it.
@seattle_tax
We have a couple hundred elderly clients we print returns for still. The upside to this is they are the most likely to bring us fresh baked goodies when they stop in to pick up their return.
I'm dogsitting where I lived after college and decided to take the dog on a bar crawl of all my old stomping grounds. She seems more excited than me.
My corporate return may still need to be done but I have no regrets.
Here's a little school house rock lesson. The ability to make taxes "simple and free" begins with a bill in Congress. A great start would be NOT passing retroactive tax law changes.
As tax filing season opens, a reminder that Americans spend an average of 13 hours and $240 a year to file their taxes—while
@turbotax
and
@HRBlock
rake in billions.
Tax filing should be simple and free.
The
@IRS
is working on a pilot program to get that effort started.
Reason # 1,347 I'd be a bad employee:
My clients have learned I work based on the weather. It may be a Tuesday but if it's sunny and 75 I'm on the lake. Those who aren't ok with it leave.
I'm not proud of much but I've lasted an entire week of eating tex mex and bbq without spilling on myself.
That's a greater achievement passing the CPA exam in my book.
@cbriancpa
Conceptually I agree w/ increased enforcement on HNW BUT my fear is they start going after those $400-600k income folks for low hanging fruit. We had 2 audits in that range this year and we had 30-50 hours of labor into each and both resulted in less than $3k adjustments.
Got home to a swamped pirate ship. Turns out 25 yr old boats don't take kindly to snapped hoist cables.
Good thing
#TaxRetreat
equipped me to be resilient and adjust to the unexpected.
Anybody who says sports aren't culture has never lived in an up and down sports city. Detroit is absolutely rocking w/ the Tigs on a historic run, Lions peaking & anticipation of a red wings playoff run. Strangers high five on the street and for this little while problems fade.
Hot Take: Public Accounting would not need Private Equity if partners were willing to reinvest just 20% of their earnings into the firms.
What say you
#taxtwitter
?
It's a weird feeling being asked to be a mentor for another professional when you still view yourself as a mentee. Sure, I'll do it but I'm just learning to tie my shoes.
I wasn't sure if we would be getting an authentic "ger"(yurt) experience but thus far I'm covered in bugs, a cow has blocked our door and I shocked myself unhooking the light wired directly to a car battery. I'll never question authenticity again.