plus: 10 reasons to improve your review process.
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by ed mendlowitz
how to review tax returns: the field-tested update
tax season is a microcosm of everything done in an accounting practice.
more mendlowitz: 4 reasons to push ahead with tax question research | one can’t-skip touch for tax season | 5 steps for tax season success | help tax clients help you | 3 steps to tax season happiness | 12 ways to have more fun this tax season | bill with the tax return, get paid faster
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one of the primary concerns of a business is having the proper processes and quality control procedures.
choosing how to properly use the reviewers’ time and interface them with the staff can contribute immensely to a smooth tax season.
the compression of tax season work in a relatively short period causes management and staffing problems. it also provides an excellent opportunity for a continuous quality control initiative, the goal of which is reducing errors. reviewers play a key role in reducing errors and setting and improving firm standards because they get to see the work of a large number of staff in a very short time period. this gives the reviewers insights into the work habits, pride, passion, quality, responsibility and ownership of these staff.
the large volume going through the firm and reaching the reviewers provides a unique opportunity to affect the overall quality of all the work done by these staff – not just the work on tax returns. if approached properly, tax return preparation can be the spearhead toward improving and elevating the quality of work done by everyone in the firm in every area they practice in.
reviewers should be made aware of their role in these efforts. however, because of the huge volume and never-ceasing deadlines, big-picture quality methods are usually shunted aside in favor of getting the returns out. firm management must become leaders in the quality effort and for that reason, they need to focus on the long-term benefits of processes that will elevate the level of work and enlist the reviewers into those initiatives.
tax return preparation work, if approached properly, will create lasting firmwide improvements. use this as an opportunity for growth. train the reviewers and empower them to go for it!
tax return preparation could be a commodity or a professional service
question: are tax returns commodities or the result of a professional service?
answer re: commodity: if you believe tax returns are a commodity, then you will also believe there is no product differentiation and the business should go to the lowest-cost provider. there is nothing wrong with you thinking this way and running your practice accordingly. however, you should still want to provide a complete and error-free tax return. therefore, there could be great value to you to reduce your costs by limiting errors, redos and unnecessary touches.
those in the commodity business of tax return preparation usually handle a high volume of easier tax returns but can also have clients with complicated returns. additionally, those that are more entrepreneurial could use the quality products they deliver to generate additional revenue from their clients for nontax preparation services. accordingly, a quality product is essential to maintain firm clients and use them as a base for growth.
answer re: professional service: if you feel tax preparation is providing a professional service to your clients, then might i ask what value do you add to the client? might i also ask how is your return better? if there is no value or the return is not better, then where is the professional service?
the value adding is accomplished at two stages in the preparation process. one stage is by the partner who either receives the information at a meeting with the client, or when they do a top-side review before they sign the return. the other is by the reviewer whose job it should be to look for tax savings opportunities for the return and possibly a previously filed return, and then for planning opportunities for the current and future years.
i might note that there shouldn’t be successful opportunities to add value each year, but there should be over a five-year period and that should more than justify engaging your firm by the value added.
value is not just added by finding tax savings opportunities, but by
- being available,
- being responsive to clients’ concerns and needs,
- doing a timely and error-free job,
- assurance by the client that they are not missing opportunities and
- the accountant adding to their database of the client’s activities, personality, feelings and risk propensity that can be accessed when needed to advise the client on a proper course or direction.
the role here of the reviewer would be to use all their talents, knowledge and experience to uncover tax savings opportunities. this can more easily be done when their time is spent looking for such opportunities rather than trying to correct errors made by lower-level staff people who have prepared error-laden returns.
10 reasons why you should want to improve your review process
- you should want to deliver a better product to your clients.
- you should want to increase your reviewer efficiency and effectiveness.
- you should want to improve the quality of the returns submitted to the reviewers.
- you should want the partners to do a better-quality top-side review.
- you should want to have a much better tax season.
- you should want to reduce pressure and stress during tax season.
- you should want to work better and smarter during tax season.
- you should want to have more fun during tax season.
- you should want to make more money from tax season.
- you should want to not be so tired during and at the end of tax season.
one response to “use tax return prep for training and growth”
frank stitely
i could not agree more. it also leads to a more sane personal life for partners.