outlook & analysis

survey report: busy season 2014 outlook

by

click to enlarge
click to enlarge

executive summary

by rick telberg
cpa trendlines

most tax practitioners across the nation are preparing for the 2014 busy season with the hoping it can’t possibly be as bad as last year’s “worst tax season ever,” according to exclusive 卡塔尔世界杯常规比赛时间 polling.

about 61% of accountants today expect at least a “somewhat” or even “much” better season this year, according to the 卡塔尔世界杯常规比赛时间 busy season barometer, a tracking poll now approaching its 11th year. some 26% expect no change from last year, and 13% are bracing for “somewhat worse” or “much worse.”

in the 卡塔尔世界杯常规比赛时间 special report, responses and comments from more than 400 practitioners surveyed have been tabulated and analyzed. key findings:

screen shot 2013-11-26 at 4.50.30 am
pro member download
  • economic outlook for firms, clients, owners, and the nation in general.
  • practitioners’ forecasts for the upcoming season, compared with the forecasts from the same time a year ago and with 2013 actuals.
  • factors contributing to positive outlooks and factors contributing to negative outlooks.
  • top 10 challenges and concerns to prepare for and examples of how some practitioners are doing so
  • projections for key busy season metrics, including revenue, profit, client counts, extensions, revenue per client, and profit per client; compared with 2013 actuals and year-ago forecasts
  • the four key strategies shared by most practitioners with positive outlooks
  • the four important lessons learned from last year’s “worst tax season ever.”
  • verbatim comments from hundreds of practitioners.

more

read more →

how to use compensation to keep partners engaged

by

finding the perfect compensation system

by robert j. lees
and august j. aquila
creating the effective partnership

a critical element in keeping partners engaged is having a compensation system that rewards them for doing the right things. every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. if a firm’s plan does not accomplish these objectives, it needs to be restructured. read more →

past due fees

by

by ed mendlowitz “tax season opportunity guide“ question: a client owes me a very large amount of money and seems to be giving me a runaround and i need to get the check quickly. the client has the cash, so … continued

seven emerging trends in structuring the buy-in for new partners

by

the old formulas don’t work anymore.

by marc rosenberg
author of how to bring in new partners

at one time, calculating and structuring the buy-in for a new cpa firm partner was fairly simple and uniform across the profession. but things have changed. until recently, you’d start with the total value of the firm, defined as accrual basis capital, and then add goodwill, commonly expressed as a percentage of fees.

so, let’s run the numbers and see why firms are looking for alternatives and what they’re finding. we’ll look at trends in personal risk profiles, ownership percentages, how the buy-in is paid, guarantees to banks, the number of years to pay the buy-in, who the buy-in is paid to, and last, but not least, sweat equity.

read more →

value billing on the 19th hole

by

any billing method that relies on client ignorance is certain to fail.

by frank stitely, cpa
stitely & karstetter, pllc

value billing advocates exhort us to bill based on the benefit a client receives, but that’s just the demand side of the economic equation. competition is the supply side. here’s a little fable based on ed mendlowitz’s “value pricing: a lesson in applying judgment,” where a cpa asks for billing advice and then bills a client $7,000 for three hours’ work.

“great day, al.  have you ever shot an 80 before?”

“no, jay.  this is my first.  this round of drinks is on me.”

jay continued, “you’ve had quite a week.  first, you got your line of credit.  now the best golf round of your life.”

al had just finished a round of golf with his banker, jay; a neighbor, john; and john’s cpa, greg.

“jay, i am blessed with having great friends and advisors.  you did a marvelous job.  but, i should give some credit to my cpa, frank.  he put the entire package together for seven grand.  that seems like a great price.”

al saw the puzzled look in greg’s eyes. read more →

your location is not the client’s fault

by

ed mendlowitz cpa the practice doctor q and acharging for travel time and expenses can alienate clients.

by ed mendlowitz
“tax season opportunity guide“

question: my practice is in central new jersey and i have a client about 2-1/2 hours away in pennsylvania. the mileage and tolls cost us $200 each month. can i bill for this?

answer: are you crazy? you will lose the client. you would be “penalizing” the client for you not being local to their business.

read more →