<\/p>\nkey indicators: 39% stressed out; 53% call it a ‘worse’ season; but financial benchmarks look strong. what’s the story? read the comments for some clues.<\/i><\/p>\n
looking back on the busy season, 39% of practitioners are reporting that they suffered at least “frequent or constant stress,” including 11% who said they were “totally crazed!”<\/b><\/p>\n
<\/p>\n
what’s cause of the stress?<\/b>
\nsome comments:<\/i>
\n>>>a few clients that were slow pay. hired new employee with little tax prep experience
\n>>>as always, last minute clients dropping off records for 2006. then, expecting us to complete it overnight. that is the only thing that seems stressful.
\n>>>balancing work load, training, and client demand
\n>>>change in louisiana tax credit for insurance
\n>>>client demands
\n>>>client expectations\/too much work
\n>>>client pressure for completion of returns.
\n>>>client that was overly demanding.
\n>>>clients
\n>>>clients being late and expecting wonders thinking they are the only one i have.
\n>>>clients getting work to us on, say, 3\/25 and then calling back 2 days later to say they’re going out of town on april 4 and won’t be back until april 20. clients getting their returns at the end of march and then calling on 4\/16 to ask questions\/discuss items on return. clients with incomplete information who then send the missing stuff via e-mail & fax a little at a time over the next several weeks. and of course the usual—too much work.
\n>>>clients late with tax work after 4\/1
\n>>>clients not getting their info in on a timely basis
\n>>>clients popping in. telephone. front office help.
\n>>>clients take us for granted, they are unprepared\/uneducated\/uninterested.
\n>>>clients that want so much with so little time; and the fact that these same customers what it done right now! lacerte tax software quit efiling and took one person sitting in front of the computer to see if they could get something efiled.
\n>>>competing priorities to clients versus firm management responsibilities.
\n>>>complexity of returns; corrected forms 1099 form brokers issued late; inexperience of staff
\n>>>compressed work load and lack of qualified staff
\n>>>conflict with supervisor, homefront out of control, issues with kids
\n>>>customers waiting until the last min. to bring in there papers
\n>>>deadline
\n>>>deadline.
\n>>>deadlines
\n>>>deadlines, a lot of work needed to be done in a short rime, not enough time for self
\n>>>death of a partner
\n>>>disorder, lack of assigned roles, lack of necessary information to do my job.
\n>>>employee turnover
\n>>>employees and work load
\n>>>every file that i touched had issues
\n>>>excessive workload & unrealistic expectations
\n>>>extensions needing to be finalized; may 15 deadline looming; quarterlies with one week to go – and trying to tie up loose ends before heading off on vacation later in may
\n>>>family\/personal issues
\n>>>filing deadline
\n>>>financial statement audits to finish and irs representation case.
\n>>>general work load; more time spent performing mortgage interest tracing due to annual refinance clients
\n>>>getting returns out on time
\n>>>heavy workload, short time to complete, inadequate assistance.
\n>>>high work load
\n>>>hours related to the increased volume of work (we acquired a block of clients from a competitor that passed away).
\n>>>i am not a tax person but observed the stress. most of it came from accepting too many small tax clients. they overburdened the system and kept us from doing 10 level work on our top clients.
\n>>>i am purchasing a new home, the closing kept getting pushed forward despite all that needed to be done. (made tax season look like a breeze)
\n>>>i expanded my practice, hired two new staff who were increbible, but i could not keep ahead of them. i became the bottleneck
\n>>>illness of employees and families.
\n>>>incompetent staff
\n>>>increase in volume incomplete client data\/corrected data
\n>>>increased workload due to increasing complex transactions
\n>>>irate clients
\n>>>it is the nature of the beast.
\n>>>it problems, new clients and staffing issues
\n>>>lacerte efile problems last two days of the filing season.
\n>>>lack of all necessary information from clients and our efforts to get this information.
\n>>>lack of capable staff to delegate to.
\n>>>lack of efficient employees\/work load
\n>>>lack of experienced staff, workload compression
\n>>>lack of help!
\n>>>lack of qualified personnel
\n>>>lack of staff and poor morale
\n>>>lack of staff response
\n>>>large projects, normally welcomed, cropping up during busy season. several staff missing time with pregnancy, and other health issues.
\n>>>last minute complex returns.
\n>>>last minute volume. complexity of tax issues.
\n>>>late clients.
\n>>>late filers
\n>>>late filers, lack of adequate help
\n>>>late k-1’s
\n>>>late law changes and forms
\n>>>late preparedness; extraordinary growth; technical challenges and good help
\n>>>late production of forms, corrected 1099s, corrected 1099s, corrected 1099s, procrastinators
\n>>>late receipt\/amended receipt of information from clients leading to a compacted tax season.
\n>>>late, unprepared clients
\n>>>long hours, late k1s, extra days
\n>>>lots of extensions, clients not being prepared, later software releases and updates.
\n>>>lots of work came in early
\n>>>lots of work, not enough staff.
\n>>>managing information flow from clients on a timely basis
\n>>>medical issues for both me and my spouse along with the regular deadlines.
\n>>>meeting demands – typically client’s non-tax issues
\n>>>more work than capacity
\n>>>more work, started earlier
\n>>>multiple high level client engagements at the same time.
\n>>>my crazy partner
\n>>>new clients
\n>>>new clients a lot
\n>>>new employees, client request for one time service with a short time line in march
\n>>>new software suite.
\n>>>new tax laws… taxpayers don’t understand the myriad of complexity… irs and state dor’s not matching estimated payments…
\n>>>new tax provisions (state) required almost 100% additional contact – sometimes 2 or 3 calls. also implemented new write up software.
\n>>>normal stuff—just a lot of work to do in a short time
\n>>>over scheduled – lots of new business
\n>>>overwhelming number of new clients (not complaining), along with a majority of my regular clients all coming in at the same time.
\n>>>overworked, tired, clients procrastination
\n>>>payroll tax returns and excise tax returns due april 30
\n>>>personal illness that took partner out of office for six weeks of season
\n>>>pressure to get things done in a timely manner.
\n>>>probably unrealistic expectations on my part!
\n>>>projects to complete
\n>>>staff
\n>>>staff not keeping up with the load, clients late in getting info in.
\n>>>staffing
\n>>>state nonconformity; lacerte computer problems on 4-17; clients getting late and revised brokerage account statements.
\n>>>tax law changes, growing business with not enough staff.
\n>>>tax program – lacerte
\n>>>tax returns due & clients having motorcycle accidents in chile plus other??
\n>>>taxes, dummy.
\n>>>the balancing act of serving two masters.
\n>>>the rush at the end of the season!
\n>>>this was the tax season to end all tax seasons (42 seasons)but as you will see i’m not complaining. we expected it to be hectic when the brokerages said their statements would be late. then in early march 2 of 3 cpas were out for two weeks with the flu, the other was out only for 4 days. on 4\/13 the cpa who rents an office from me had a heart attack and passed away.
\nso we quit our gripping.
\n>>>time constraints
\n>>>time restraints, some inexperienced staff, very late corrected 1099s and corrected k-1s, client demands
\n>>>timing of receipt of data from clients
\n>>>to few experienced staff, new paperless attestation software.
\nto little time an to many late arriving materials.
\n>>>too many clients waiting until the last few days to get their info in and then all acting like they are the only return you file
\n>>>too many last minute filers!
\n>>>too many projects and not enough time.
\n>>>too many untrained staff.
\n>>>too much to do
\n>>>too much work
\n>>>too much work
\n>>>too much work and not enough time.
\n>>>too much work, too little staff.
\n>>>too much work.
\n>>>too much work.
\n>>>uncertainty and unfullfilled expectations.
\n>>>understaffing – we need more staff at every level from entry level to senior managers
\n>>>unprepared clients bringing incomplete information
\n>>>waiting for data then all coming at once and everyone wanted their return
\n>>>waiting for last minute client information
\n>>>work
\n>>>work also major remodel going on at home.
\n>>>workload
\n>>>workload
\n>>>workload
\n>>>workload compression…too few hours to get it done.
\n>>>workload too heavy<\/p>\n
a distinct minority, only 29%, gave the season a green-light thumb’s-up for being “better” than the 2006 season. most, or 53%, said the season was “worse,” with 18% calling it “about the same.”<\/b><\/p>\n
<\/p>\n
what was different about this year?<\/b>
\nsome comments:<\/i>
\n>>>a key staff change
\n>>>added work load
\n>>>a lot more clients waited until later to bring in to add to the end of season stress
\n>>>as i get older, it seems to take longer for me to do things.
\n>>>better able to strategize workload and time spent
\n>>>better administrative help made a huge difference to our tax season
\n>>>better equipment!!
\n>>>better preparers
\n>>>better quality staff
\n>>>better utilization of my time during the early part of the season thus allowing for more available time for the finishing “crunch”.
\n>>>clients are aging but their financial assets grow more complicated year by year.
\n>>>clients are later getting materials brought in.
\n>>>clients being late. in addition to having more clients.
\n>>>clients were generally later getting their information in and a high percentage brought data in that was not complete.
\n>>>corporate returns
\n>>>death of most important client
\n>>>different client mix due to client additions.
\n>>>done much earlier—very smooth; planning and follow up during season were very effective
\n>>>excellent support staff and seasonal staff
\n>>>fewer problems with technology and better trained staff.
\n>>>getting older
\n>>>good team in place
\n>>>higher level of responsibility due to progressing through the ranks of the firm.
\n>>>hired additional staff.
\nstaff had fewer personal issues.
\nestablished a cutoff time for extensions.
\ndelegate more authority.
\n>>>i blocked out my time better
\n>>>i felt like i was never in a “caught up” position
\n>>>i had started a new job last year so busy season was light – this year i was more integrated into the firm.
\n>>>i haven’t gone on vacation yet.
\n>>>i was better organized
\n>>>i was not new to the firm – i understood how they wanted the w\/p’s and i knew all the software
\n>>>increased volume.
\n>>>inexperienced help
\n>>>insufficient human resources and clients waiting too long to get their stuff in
\n>>>ipo
\n>>>it was badder
\n>>>it was less demanding.
\n>>>lacerte efile problems last two days of the filing season
\n>>>lack of help
\n>>>last minute changes
\n>>>last year were converted to a different tax prep software. this year when much smoother. also, advised selected clients who were time chewers last year that now an extra charge for meetings.
\n>>>lateness of information beyond the control of clients. corrected 1099s and k-1s were a big problem.
\n>>>law changes. personnel
\n>>>less hurricane and casualty loss issues to deal with.
\n>>>less people
\n>>>less software issues
\n>>>less staff.
\n>>>less tax changes no software issues
\n>>>lot of new clients
\nlarger clients
\n>>>many more appointments
\n>>>more business
\n>>>more clients
\n>>>more clients
\n>>>more clients — increase in our fees
\n>>>more clients came in late and expected to have their returns filed on time.
\n>>>more clients got their info in earlier this year
\n>>>more clients, i just opened last year.
\n>>>more clients, more complex\/oddball situations
\n>>>more complexity layered on general irs incompetence and overloaded technology
\n>>>more efficient and had a better understand of the clients i acquired.
\n>>>more experienced staff
\n>>>more extensions, more stress, more mistakes
\n>>>more familiar with my clients.
\n>>>more new clients, less experienced staff.
\n>>>more procrastinating clients
\n>>>more responsibility
\n>>>more returns, more complex issues by clients
\n>>>more returns.
\n>>>more revenue from each client.
\n>>>more small clients. many with unique situations.
\n>>>more technology
\n>>>more utilization of software and more experienced staff
\n>>>more work
\n>>>more work
\n>>>more work crunched into shorter time
\n>>>more work, less help
\n>>>more work.
\n>>>more work; client issues
\n>>>more, talented staff
\n>>>most work was late to come in & go out.
\n>>>my firm implemented new software that caused work to be done less efficiently
\n>>>new clients
\n>>>new hires not up to snuff yet
\n>>>new it system and software
\n>>>new position
\n>>>new software issues. more computer problems.
\n>>>new software suite.
\n>>>newbies.
\n>>>paperless
\n>>>partners were more organized less stressed.
\n>>>phone credit through us for a loop…added more billable hours but created more stress.
\n>>>profits are up over 15%
\n>>>promotion
\n>>>receiving information later
\n>>>refused to be stressed about anything. had one less person working & forced me to be more hands on.
\n>>>seems more people have either “done it themselves” or chosen another path to compliance. phone calls to these clients were unreturned. i assume that they are “doing it in-house” (seems to be what others, who have returned my calls, have claimed)
\n>>>short staffed. . more work
\n>>>smoother, fewer crises
\n>>>so much time was spent in training new employees, that tax preparation was stalled.
\n>>>software wasn’t an issue
\n>>>staff a little better trained; accepted fewer new clients
\n>>>staffing and broker statements sent out late and constantly amended
\n>>>started working later & on weekends earlier on
\n>>>tax program problems – lacerte
\n>>>tax shoppers, not fee shoppers
\n>>>that extra day just seemed to make people delay longer in getting their info in
\n>>>the 2007 amt laws are unindexed, making the increase in quarterly estimates difficult to explain
\n>>>the amount of late 1099s after returns were completed
\n>>>the delay in 1099 div pushed most clients till after the amended 1099s were issued. sunset provisions delayed the start of the season.
\n>>>this year i was only working for me.
\n>>>too many amended items. some people in automated trading programs trading 2 to 7 shares at a time, and information not easily put in irs-approved formate.
\n>>>took on more work than i could do
\n>>>understaffing
\n>>>we had better help
\n>>>we had better staff: we had to hire 4 new people (2 to replace staff who left) and 3 of them are really fast learners and good workers & helped a great deal.
\n>>>we pushed more work through during the season; fewer technology challenges than we had last year (we upgraded this year, but did so early enough to avoid tax season woes); i kept bowls of dove chocolates filled to the brim and noticed that at most stressful moments, everyone was popping chocolates — and it actually seemed to help everyone’s disposition!!
\n>>>we terminated an employee last year and replaced him with a far superior employee.
\n>>>went home at reasonable time 3 days out of week, meditation, reading of uplifting material, exercise
\n>>>went paperless. new staff.
\n>>>worked less hours early in the season
\n>>>worse staff performance<\/p>\n
despite the high level of negative feelings about the season, the facts would seem to indicate widespread improvements, with 80% of practitioners reporting year-over-year gains in total revenue.<\/b><\/p>\n
<\/p>\n
in addition, a majority of practitioners reported gains in all major categories of financial and operational benchmarks.<\/b><\/p>\n
can you explain the changes in the benchmarks?<\/b>
\nsome comments:<\/i>
\n>>>3% increase in hourly rate plus more complex returns.
\n>>>a couple of large clients are requiring more time and attention as they grow.
\n>>>added local population\/businesses
\n>>>although increase, more client concerns on costs, especially individuals
\n>>>better realization on staff
\n>>>better staff, better screening of new clients. also the partner who is usually like a cat on hot bricks was more relaxed this year & didn’t put as much stress on the managers and staff.
\n>>>billing rate structure changed and we weeded out less profitable clients and replaced them with more profitable paying ones.
\n>>>by getting rid of an inefficient employee & doing a little more basic work myself
\n>>>clients bringing materials in later. staff change – need to train better.
\n>>>clients waiting til the end. marketing worked.
\n>>>corrected 1099’s and late k-1’s
\n>>>costs stayed roughly the same but lost larger client
\n>>>deliberate attempt to capture and bill for all services provided, in detail
\n>>>different person doing the billing.
\n>>>economy… industry outlook
\n>>>expensive short term fixes
\n>>>fewer clients (especially businesses) went on extension vs. prev. yr….added to workload compression, but higher revenues during tax season.
\n>>>file server problems, almost 4 days
\n>>>fired several bad clients.
\n>>>good economy.
\n>>>great staff!
\n>>>greater number of clients compared to prior year. getting more high end clients as opposed to what i acquired from previous owner.
\n>>>greater than inflationary fee increases to offset increasing salaries and benefits
\n>>>gross revenue is up about 12% – we try to hold growth at less than 15% so we don’t lose total control. so – net profits, number of clients and number of extensions are also up but rev per client and profit per client are about the same. what i’d rather see is number of clients down and total rev\/profit up!
\n>>>higher rates; efficient use of e-file.
\n>>>i did more of the work myself
\n>>>i raised prices, and clients keep coming due to referrals
\n>>>increase prices on new clients, less experienced help kept cost up
\n>>>increased billing rates and more volume
\n>>>increased complexity and referrals
\n>>>increased number of clients in a new practice.
\n>>>increased rates, and additional tax clients via referrals.
\n>>>increased rates. more carefully tracked preparation time.
\n>>>increased staff and technology costs
\n>>>incredible growth
\n>>>instituted a minimum fee and we were referred many new clients.
\n>>>jettisoned large low paying client that was a significant percentage of the practice but more than made up the revenue.
\n>>>last year i had more katrina clients.
\n>>>learning new software systems.
\n>>>less staff so i did more work myself
\n>>>less time spent per return due to familiarity with clients, software, w\/p’s, fewer review comments to clear, direct reports were better, also
\n>>>less turnover, more training, less write off tolerance, effective communication with clients and with staff
\n>>>many new clients and new office out of state
\n>>>more efficiency, better admin help
\n>>>more efficient
\n>>>more profitable corp. clients
\n>>>more referrals and more needs.
\n>>>more referrals meaning more clients and i raised my rates
\n>>>more selective in our client base
\n>>>my health
\n>>>new clients paying being billed from current fee schedule
\n>>>new larger clients where pricing power existed
\n>>>new software
\n>>>new staff, learning curve
\n>>>overall better economy
\n>>>processed returns faster now that last years conversion behinds us. also, some web organizers were utilized. time chewers did not return.
\n>>>raised billing rates. less likely to write off time to keep clients.
\n>>>raised fees
\n>>>raised fees for 2005 (last year) drove away some low end business, able to concentrate on high margin clients this year. little fee increase this year, less stress and more profit.
\n>>>reduced the amount of discounts given
\n>>>referrals
\n>>>seems that we have been under-charging for our busytime services. a few clients complained when we explained the new bill, but if we are going to stay late, bust our backs for a few weeks (and these individuals won’t call us in august or october, so…) this is a premium time at a slightly premium rate. how else can you justify midnight and early morning office hours to your family? we instituted slightly higher billing rates for our busy season workload.
\n>>>technology
\n>>>the current us tax system on income and payroll is patently insane. we must go to a fair tax, flat tax, or sales tax, and end payroll and income taxes completely!!!
\n>>>the decrease in revenue was primarily due to the fact that a large client sold to a publicly traded company.
\n>>>the firm has a staffing leverage problem.
\n>>>we increased our rates slightly, we charge more for late returns and there were more of those this year. slow start made for bad ending
\n>>>we instituted a higher minimum charge for 1040 work. we did not limit taking on new clients.
\n>>>we raised fees 20%. it hit the writedowns, but it bumped the revenue too.
\n>>>we turned away most new clients.
\n>>>we’ve been steadily increasing fees year by year, with the majority of our clients staying with us. i think clients are busier and value the services we provide
\n>>>we’ve focused on more prime clients and are more selective in client selection
\n>>>word of mouth from last year’s clients
\n>>>worked very hard!
\n>>>we increased our fee structure to let our clients know that we are not here to compete with block, jackson hewitt, etc.
\n>>>we raised our prices by 10% and our customers didn’t blink.<\/p>\n
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