{"id":59011,"date":"2019-04-03t22:00:09","date_gmt":"2019-04-04t02:00:09","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=59011"},"modified":"2019-04-11t09:34:44","modified_gmt":"2019-04-11t13:34:44","slug":"what-goes-into-a-project","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/04\/03\/what-goes-into-a-project\/","title":{"rendered":"what goes into a client project?"},"content":{"rendered":"

\"woman<\/a>20 project types. 6 components for each. let’s make this simple.<\/strong><\/p>\n

by frank stitely<\/i>
\nthe relentless cpa<\/i><\/a><\/p>\n

we have resolved to manage our projects effectively. just what are we managing? what is a project?<\/p>\n

more:<\/b> tammy\u2019s tale of tax season tardiness<\/a> | how effective project management makes your life easier<\/a> | 2 lessons clients taught me<\/a> | no consultant can solve your biggest problem<\/a> | the great marketing hoax<\/a> | what the value-pricers get wrong<\/a> | 3 rules for asking great tax-return questions<\/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

we could define a project in the manner supreme justice potter stewart defined pornography. \u201ci know it when i see it.\u201d but that will work as poorly for us as it worked for justice potter.
\n
\nlet\u2019s start out simply. a project has three characteristics:<\/p>\n

    \n
  1. it\u2019s an end result for which we will be held accountable.<\/li>\n
  2. we care to know its status.<\/li>\n
  3. it\u2019s long enough in duration to be worth tracking.<\/li>\n<\/ol>\n

    first, a project is an end result for which we will be held accountable. let\u2019s look at some of the services cpa and accounting firms provide. are we held accountable for preparation of income tax returns? yes. for financial statement preparation? certainly. clients hold us accountable for the completion of these services.<\/p>\n

    but what about responding to cp2000 letters? what about writing those worthless, idiotic letters to mortgage companies? certainly, clients hold us accountable for these as well. so these qualify so far as projects.<\/p>\n

    let\u2019s next evaluate each of our potential project candidates to see if we care about the status of each. to do that, we have to discuss the concept of project status. we\u2019ll do that in painful, excruciating detail in the next chapter, but let\u2019s preface that discussion a little.<\/p>\n

    there are four basic project statuses:<\/p>\n

      \n
    1. not started<\/li>\n
    2. we are working on it<\/li>\n
    3. the client is working on it<\/li>\n
    4. done<\/li>\n<\/ol>\n

      we\u2019ll develop this concept further in the next chapter and we\u2019ll define many other potential subdivisions of these statuses, but this gets us started.<\/p>\n

      do we care about the status of a tax return? surely. do we care about the status of financial statements? absolutely. do we care about the status of cp2000 responses? yes. ditto for the ?!?!?@!? letters to mortgage companies. we don\u2019t give a damn about the mortgage companies themselves, but we care about our clients getting mortgages.<\/p>\n

      so far we have eliminated exactly zero of our potential project candidates. let\u2019s evaluate our last criterion for defining projects. are our potential project candidates long enough in duration to be worth tracking?<\/p>\n

      the typical tax return takes at least an hour and maybe several hours to complete. we can agree that\u2019s long enough in duration to be considered a project. what about financial statements? certainly. they take significant time as well.<\/p>\n

      however, what about cp2000 letter responses? completion time varies from a few seconds to check a box on a notice to a couple of hours of research to identify issues, draft a response, and instruct the client on sending the response to the irs. there\u2019s no right answer to this, and there will be no test later. i will also not report your answer to your state cpa society.<\/p>\n

      in our firm, cp2000 responses are deemed projects on a case-by-case basis. if i am handling a notice right now and i don\u2019t expect it to take more than 15 minutes, i don\u2019t create a project. if a notice looks like it will require significant time and i\u2019m assigning it to staff, i will create a project. you be the judge. justice potter\u2019s concept is that you\u2019ll know a project when you see it. if you don\u2019t like how you handle cp2000 responses, change.<\/p>\n

      what about the ridiculous, no-good, useless, idiotic letters to mortgage companies? we don\u2019t consider these to be projects. we consider them to be abominations. seriously, we draft these almost immediately because the mortgage broker with planning skills has yet to be born. almost all of these are done within a couple of days of a real estate closing, so they can\u2019t wait. we don\u2019t create projects for these.<\/p>\n

      here\u2019s the basic rule. if creating a project in your system is a significant portion of the total time to be spent on a project, don\u2019t create the project. don\u2019t spend 10 minutes creating a project for a 15-minute project.<\/p>\n

      now that we\u2019ve identified potential types of projects, let\u2019s refine the concept further. is an s corporation tax return a different type of project than an individual income tax return? is the s corporation return different from a c corporation return? what about partnerships?<\/p>\n

      here you decide as well. if you care about the status of s corporation tax returns versus individual tax returns, consider them different project types. why might you care to separate them? first, they have different deadlines. second, you might have different processes for s corporations versus individuals. third, you might assign different staff to s corporations than to individuals. lastly, you may want to know how many s corp returns you prepare relative to individual returns. all of these are great reasons to track s corporation returns separately from individual tax returns. but your state won\u2019t suspend your cpa license if you don\u2019t.<\/p>\n

      to stimulate your imagination on how you might define project types, here are ours:<\/p>\n

        \n
      1. individual income tax returns<\/li>\n
      2. s corporation income tax returns<\/li>\n
      3. c corporation income tax returns<\/li>\n
      4. partnership income tax returns<\/li>\n
      5. non-profit income tax returns<\/li>\n
      6. compilations<\/li>\n
      7. reviews (we don\u2019t perform audits)<\/li>\n
      8. individual income tax projections<\/li>\n
      9. business income tax projections<\/li>\n
      10. business valuations<\/li>\n
      11. amended individual income tax returns<\/li>\n
      12. amended s corporation income tax returns<\/li>\n
      13. amended c corporation income tax returns<\/li>\n
      14. amended partnership income tax returns<\/li>\n
      15. payroll tax returns<\/li>\n
      16. estate tax returns<\/li>\n
      17. fiduciary income tax returns<\/li>\n
      18. employee benefit returns<\/li>\n
      19. personal property tax returns (a big deal in our area)<\/li>\n
      20. the ever-popular \u201cother\u201d<\/li>\n<\/ol>\n

        these are obviously correct and beyond debate. seriously, you may not need 20 different types. you may have others such as sales tax returns or monthly write-up. those two types of projects are interesting, because they recur every month. we\u2019ll discuss recurring projects in a later chapter.<\/p>\n

        now, let\u2019s discuss the basic components of a project. there are six basic components to a project:<\/p>\n

          \n
        1. project type (such as individual income tax return)<\/li>\n
        2. client name (jack jones)<\/li>\n
        3. project name (2016 individual income tax return)<\/li>\n
        4. deadline (04\/17\/17)<\/li>\n
        5. status (we are working on it)<\/li>\n
        6. person in charge (frank stitely)<\/li>\n<\/ol>\n

          you can optionally track many more. we track a few more such as:<\/p>\n

            \n
          1. responsible partner (because not all of our partners are that responsible)<\/li>\n
          2. preparer<\/li>\n
          3. reviewer<\/li>\n
          4. date assigned<\/li>\n
          5. estimated date of completion<\/li>\n
          6. delivery method (e-file or mail)<\/li>\n<\/ol>\n

            if you are new to project management, stick to the six basic components. we have formally managed projects for 15 years. we didn\u2019t start out with all of these. you can always add more later.<\/p>\n

            now it\u2019s time to do some real work. create a spreadsheet with the six components as column headings. you can do this on a sheet of paper, but we\u2019ll laugh at you, and we can do some more with the spreadsheet later.<\/p>\n

            now, pick up each of the client files in your office. for each file, create a row in the spreadsheet and complete each column for each client file. i create dropdown lists for three of the columns:<\/p>\n

              \n
            1. project type<\/li>\n
            2. status<\/li>\n
            3. person in charge<\/li>\n<\/ol>\n

              we want to standardize responses in these columns, and the number of choices for each is fixed. for instance, we have a set number of project types. we don\u2019t want anyone adding to our agreed-upon list of types. if we, as owners, decide to add a new type, we can add it to the list.<\/p>\n

              also notice that our column headings in the spreadsheet give us the ability to sort by column. for instance, we can sort by our status column to see all of the returns where we are working on projects instead of clients working on projects. congratulations! you have just taken your first steps toward effective project management. in fact, you have created a rudimentary project management system.<\/p>\n

              this level of functionality might be enough for your firm. we used, or tried to use, a shared spreadsheet project management system years ago. it sort of worked until we started overwriting each other\u2019s changes to the spreadsheet. at that moment, we knew we needed a more effective and tailored solution for project management. fifteen years ago, choices were limited in the project management software area. today, they are still limited, but you do have choices.<\/p>\n

              in the next chapter, we\u2019ll get serious about defining project statuses. limiting ourselves to just four statuses probably won\u2019t work for us. we\u2019ll also define the dreaded term \u201cworkflow\u201d and how it relates to project statuses.<\/p>\n

              you now know more about basic project management than 99.9 percent of the adult united states population. you also understand project management at a fundamental level beyond the understanding of most people holding the pmp (project management professional) certification.<\/p>\n

              the pmp certification is popular in the federal contracting world. my wife is a cybersecurity engineer who also obtained her pmp certification. she tells me stories of people trying to avoid using available project management systems. in the federal world, people get the pmp certification primarily to defeat those people who are trying to manage projects effectively. if you know your enemy, you can defeat him. in the federal world, \u201ceffective\u201d is a four-letter word. in the cpa world, effective is money in your pocket and time back in your life.<\/p>\n

              let\u2019s tackle project statuses next.<\/p>\n","protected":false},"excerpt":{"rendered":"

              \"\"
              \n20 project types. 6 components for each. let’s make this simple.<\/strong>
              \nby frank stitely<\/em>
              \nthe relentless cpa<\/a><\/em><\/p>\n","protected":false},"author":1362,"featured_media":56466,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1908,3120,3002],"tags":[],"class_list":["post-59011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\nwhat goes into a client project? - 卡塔尔世界杯常规比赛时间<\/title>\n<meta name=\"description\" content=\"actionable intelligence for tax, accounting, and financial professionals\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"\/\/www.g005e.com\/2019\/04\/03\/what-goes-into-a-project\/\" \/>\n<meta property=\"og:locale\" content=\"en_us\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"what goes into a client project? 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