{"id":80462,"date":"2020-11-17t12:00:21","date_gmt":"2020-11-17t17:00:21","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=80462"},"modified":"2020-11-17t19:37:07","modified_gmt":"2020-11-18t00:37:07","slug":"how-to-reduce-tax-return-errors","status":"publish","type":"post","link":"\/\/www.g005e.com\/2020\/11\/17\/how-to-reduce-tax-return-errors\/","title":{"rendered":"how to reduce tax return errors"},"content":{"rendered":"
<\/a>we must turn unseen clients into human beings in the eyes of staff. by frank stitely<\/i> i wasn\u2019t initially certain this post was necessary. i covered a lot of material in my first book and other posts.<\/p>\n more:<\/b> teaching the meaning of \u2018done\u2019<\/a> | how we killed the tax season client meeting<\/a> | why small firms can win the talent wars<\/a> | there are no easy answers<\/a> | how to thrive as a 21st-century firm<\/a> however, last night my sleep was haunted by the ghosts of tax return errors past, present and future. i saw my coffin rolling down the chute to the cremation chamber. i was inside shouting that i had one more checklist to complete before my life was done. determining the workflow harm that errors cause should be second nature now. errors cause rework. rework adds to wip and, thus, decreases turnaround time. solving this is as simple as determining who\u2019s buried in grant\u2019s tomb.<\/p>\n i watched a miniseries on general grant broadcast by the history channel solely to find the answer to the tomb question. they never did tell me, but i am hoping to tell you how errors decrease turnaround time.<\/p>\n this happens in two ways: wip increases, capacity decreases. it\u2019s a double whammy.<\/p>\n when a reviewer spots errors on a tax return and sends it back to the preparer, the preparer wastes at least 15 minutes, and probably more like 30 minutes, fixing the errors. the return then goes back to the reviewer, who spends another 15 minutes at re-reviewing the return. we have added 30 to 45 minutes to the wip for this tax return. we know that adding to our wip numerator increases turnaround time.<\/p>\n equally as bad, errors reduce capacity. this may not be quite as obvious. in your basic average 14-hour tax return work day, preparers spending two hours per day correcting errors reduces their capacity to prepare new returns. instead of spending 14 hours a day preparing returns, our preparers spend only 12 hours a day preparing returns. obviously, less work gets done as a result of the errors. errors reduce our capacity, which increases our turnaround time.<\/p>\n very little has been written in the cpa\/accounting world about preventing errors. by now, this shouldn\u2019t surprise you. practice consultants don\u2019t believe they can reduce your bank account sufficiently by talking about error prevention. it\u2019s not as sexy as telling you that you\u2019re worth more than you\u2019re making. however, errors cost you real money in higher costs and lost clients.<\/p>\n in the movie, \u201canimal house,\u201d dean wormer said, \u201cfat, drunk and stupid is no way to go through life, son.\u201d we can at least work on the stupid part when it comes to preventing errors. on the first two counts, i am guilty as charged, your honor.<\/p>\n the two best industries for information on preventing errors are medicine and the military. answering why is easy. when people screw up in these industries, people die.<\/p>\n there are hundreds of books on preventing errors in medicine and the military. to save you the effort of selecting and reading any of these books, i graciously read a few on your behalf. there are two primary causes of errors: bad procedures and bad culture.<\/p>\n
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\nnever happened \u2013 at least not the part about ghosts. i did pop out of bed this morning with the realization that i had never really covered the fundamental, root causes of errors. i\u2019m on a mission with this post.<\/p>\n