{"id":105103,"date":"2022-11-30t11:59:56","date_gmt":"2022-11-30t16:59:56","guid":{"rendered":"\/\/www.g005e.com\/?p=105103"},"modified":"2024-08-07t23:10:09","modified_gmt":"2024-08-08t03:10:09","slug":"tax-review-procedures-are-your-quality-control","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/11\/30\/tax-review-procedures-are-your-quality-control\/","title":{"rendered":"tax review procedures are your quality control"},"content":{"rendered":"

\"\"six questions to ask yourself.<\/strong><\/p>\n

by ed mendlowitz<\/i>
\nhow to review tax returns: the field-tested update<\/i><\/a><\/p>\n

the purpose of tax return reviews is to assure the quality of the return.<\/p>\n

more: <\/b>seven types of tax return reviews<\/a> | how to turn tax returns into new business<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

quality should be defined as an accurate product along with pertinent and applicable tax law benefits applied as well as planning opportunities identified so the client could maximize their financial wealth and security.
\n
\nthe review should also uncover and eliminate red flags that might cause a notice or audit.<\/p>\n

i refer to the review process just as that \u2013 the review process. however, in reality it is part of the firm\u2019s quality control (qc) system. if you think of the review as qc would you look at tax return reviews differently?<\/p>\n

ask yourself if there is a difference between review and quality control. i think not! from my speaking to thousands of accountants across the country, it is my understanding that average review time is about 40 percent of the time it takes the preparer to do the return (not considering calls to get additional information and error correcting time). consider your clients that have qc departments. how much time do you think they spend on average for qc? would 5 percent seem right?<\/p>\n

accounting firms that have high review times usually have high error rates necessitating the higher review time. doesn\u2019t that sound crazy? why not set up procedures to reduce the error rate? note that i have been told that error rates range between 5 percent and 95 percent for many firms. ninety-five percent!!!??? that is crazy! there must be a time that you decide to reduce this amount. you can rationalize all the expediency reasons in the world, but this is just bad \u2026 and poor business!<\/p>\n

here are six questions with comments to ask yourself:<\/p>\n

1. should qc need to be made a top priority for the firm, and especially the tax preparation process?<\/p>\n

the higher the qc time, the greater your costs to prepare the return. the higher the error rate by the preparers, the longer it will take the return to go through the review and preparation process. and the higher your wip inventory, the longer it will take to get paid and the more unhappy your staff and the client will be. further, the greater the number of touches the more likelihood there is of an error.<\/p>\n

2. in your opinion, who should be responsible for qc?<\/p>\n