make sure your staff has the correct voice and data plans in place on mobile technologies. to be productive and responsive to clients, your staff needs tools that allow them to talk, e-mail and text. solutions will run from free to in excess of $500. it would be great to have the latest and greatest handheld technologies with all of the bells and whistles, but given the state of the economy, a device that allows for the basics will suffice.
contrary to irs claims last year, audit rate for wealthy americans sharply declines.
according to agency data obtained by the transactional record access clearinghouse in syracuse, n.y.:
the significant turndown in audits for richer americans from fy 2007 to fy 2008 sharply contrasts with the irs claim in a 2008 press release boasting that the agency was making “strong progress in a number of key enforcement areas,” especially for “those with incomes of $1 million or more.”
the irs data clearly show that the audit rate on the 300,000-plus returns reporting incomes of more than $1 million was substantially down last year — dropping at least 19 percent. but because of admitted agency accounting errors and two sets of conflicting numbers the irs published just last friday (march 13, 2009), the actual extent of this decline may be much larger.
as tax season 2009 rumbles toward its climax on april 15, practitioners are suddenly reporting a mounting list of problems – most them stemming from an uncertain and increasingly grim economy.
tax accountants are scrambling to keep up with skittish clients and tardy forms and information. many are making allowances and concessions to economically strapped customers by delaying or extending payment terms. others are requiring some clients to pay upfront.
in lithonia, ga., for example, soloist sabrina m. batts at the batts tax service center tells me that this season is marked by “clients having a lack of money to pay for fees,” adding, “this the slowest season i have every seen.” as a result, she’s “making client leave post-dated checks.”
how will you celebrate the end of busy season?
after a tough year, cpas plan a little rest and recreation.
what are your plans?
for the second year in a row, cpa c.j. spady has ben giving a 10% discount to clients bringing their information prior to feb. 13. it worked great last year. but this it took more “hustle,” spady says, to get their information.
after using many different varieties of opinion survey, the gallup organization came to the conclusion a few years ago that the responses to just 12 questions can show why one organization, division, department or any other managerial unit is happier and more profitable than another.
on a scale of 1 to 5, with 1 being “no, or rarely,” and 5 being “yes, mostly,” how would you score? read more →
how you celebrate can depend on what you’re celebrating, particularly if you’re celebrating the end of busy season 2009.
there will, no doubt, be parties and much rejoicing. maybe even some dancing, and, dare we say, drinking? so it’s time to start chilling the champagne and booking the rooms. the end of busy season is within sight.
the celebrations, like accountants and accounting firms, come in all favors and styles.
take, for instance, mark borel’s small practice in reno, nev. one year recently, his post-season celebration plans included a staff lunch, after which all the ladies were sent to a spa for all-afternoon treatments. and then the shop was closed for a three-day weekend.
francine mckenna has long been a must-read at re:theauditors.
now she’s at the huffington post too, and a force to be reckoned with:
governments all over the world are protecting and shielding the public accounting firms from failure under any circumstances, even in the face of repeated failure on their part. the current business model for global public accounting firms no longer promotes the safeguarding of shareholder interests in the modern publicly traded multinational. shareholders, and other stakeholders, are being shafted. the firms and their partners may be corrupt. they are unequivocally self-interested.
when it comes to the big 4 public accounting firms, the official word is still, “too few to fail. too powerful to call to account.”
the sec has declared that uk companies which agree to new proportionate liability rules for their auditors can’t use their financial statements in the u.s.
peterson calls it a “non-surprise:”
the only surprise about the sec’s position — which effectively slams the door on the world’s only remotely influential action affecting the large auditors’ deadly litigation exposure — is that it took so long to arrive.
peterson has long been saying that the big four firms face potentially lethal liability issues. his views are especially worth listing to, considering he’s a former big four attorney. if he’s worried, we should all worry.
finding and keeping good, young talent can be challenging for any business. and in today’s economy, the next generation can hold the key to boosting your bottom line. read more →
“the darwinian concept of the survival of the fittest has been substituted by a philosophy of the survival of the slickest.”
by howard wolosky / guest commentator
this martin luther king, jr. quote still rings true.
it is particularly evident when you look at the alleged ponzi schemes that we read about every day. many of these individuals show a remarkable knowledge of how the financial marketplace works and are skilled at gaining prestige, obtaining political influence, and escaping regulators’ wrath. they also seemingly have an innate and sharply developed ability to manipulate individuals and entities to their advantage.
the marketing of adjustable rates and balloon mortgages with little down and no real credit checks coupled with the packaging of these mortgages into investments promising high return is the best illustration of where this philosophy of the survival of the slickest is taking us.
martin luther king was ahead of his time as now many are seeing the truth of that quote. this awareness, the developing community concept derived from the internet, and the fact that the internet ensures the uncensored widespread and quick dissemination of information, discussion, and debate, signifies change is coming.
many in all levels of society including a few ceos, consultants, and professionals are sensing a new business model is imminent in which ethics and profits aren’t mutually exclusive and in fact, compatible and necessary for a changing marketplace. to get buy-in from all the necessary stakeholders, businesses, not-for-profits, groups, and communities on the internet, codes of conduct and responsibilities will have to be developed. there will also have to be actual transparency and demonstrated delivery of win-win to all the stakeholders.
cpas, often identified as the most trusted advisor of businesses and individuals, can be one of the prime catalysts for this seismic change. many firms are perfectly positioned, especially these very successful regional firms that have been “walking the walk” for a number of years. they created infrastructures, procedures, and safeguards to maintain quality and still experience sustained growth. their focus is long-term, and most importantly, there is understanding that trust is constantly earned, and although profits might be the result, ethical means can always be utilized and makes business sense.
howard wolosky is former editor-in-chief of practical accountant and a webcpa.com columnist.
the latest data show for the week ended march 15, 34% of practitioners report the season is running “better” than last year’s season, up from 25% in the previous week, ended march 8.
meanwhile, the number reporting “worse” conditions dropped to 21% from 27%. and the “about the same” has remained, well, about the same.
(week ended march 15 2009)
economic problems seem to be characterizing tax season 2009, with about 73% of accountants now calling it a real challenge, compared to about 62% a month ago.
clearly, accountants are more worried about matching last year’s revenues and profits — and, to an extent, to getting paid at all.
and that’s borne out in the comments. a sampling:
what’s different about this year? (sample verbatim)
losing some simpler clients to turbo-tax
working many more hours.
with many brokerage 1099’s issued so late, it feels as though our preparation time shrank from 2 1/2 months to 1 1/2 months. we have been preparing our clients to the higher likelihood of extension.
we seem to be better prepared and staff has been doing an excellent job. within the context of the local and general economic  conditions, clients seem to be more involved and interested in our work and advisory consulting.
we are not as busy. we’ve lost both tax and audit clients to smaller firms who under-bid our fees.
there seems to be less appointments this year.
tax work is coming in later, possibly not at all
small returns are doing it themselves to save money. fees are a much bigger issue this year.
phone not ringing as much as in years past.
pessimistic economic outlook.
people are more apprehensive
people are getting their information to me later this year. the number of new clients this year surprised me.
people are coming in faster and needing refunds faster
people are bring information sooner than prior years
8 powerful financial measures that are not in your p&l reports.
too many organizations are obsessed with their profit and loss reports. it hasn’t occurred to them that they might be looking at the wrong numbers. let’s look at some numbers that just might have a bigger impact on the profit and loss, then some of the numbers that are on the reports. read more →
