Recently the IRS released its annual list of “Dirty Dozen” tax scams in attempts to warn taxpayers of fraudulent activity that could cost them considerably if they are caught unaware.
IRS Commissioner Doug Shulman says, “Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen. Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”
You should alert your clients to the 2012 list of Dirty Dozen tax scams which include the following:
- Identity theft. These scams involve thieves looking to use a legitimate taxpayer’s personal information to file a fraudulent return and receive a refund. The IRS has an intense screening process that attempts to filter out fraudulent returns, and in 2011 they were able to prevent $1.4 billion in taxpayer refunds from going to identity thieves. For more information visit www.IRS.gov/identitytheft.
- Phishing. In this scam, individuals receive unsolicited emails or are lured to fake websites in attempts to get them to disclose personal and financial information. The IRS warned, “If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.”
- Return preparer fraud. While the majority of tax preparers are honest and submit accurate and legitimate returns, some will overcharge with promises of helping clients secure extreme refunds.
- Hiding income offshore. Some US residents try to evade taxes by hiding income in offshore accounts. In the last few years, the IRS has taken extreme measures to root-out and pursue these individuals who, if discovered, will be required to pay exorbitant fines and face possible criminal persecution.
- “Free Money” from the IRS & Tax Scams Involving Social Security. Many scammers prey on low-income taxpayers with promises of free money in submitting returns that include little or no documentation. They also lure the elderly with promises of nonexistent Social Security refunds or rebates.
- False/Inflated Income and Expenses. Some taxpayers falsely claim more income in efforts to secure the Earned Income Tax Credit or a greater refund. The IRS warns, “This could result in repaying the erroneous refunds, including interests and penalties, and in some cases, even prosecution.”
- False Form 1099 refund claims. In this scam, taxpayers are encouraged to file Form 1099 Original Issue Discount (OID) to make a false refund claim.
- Frivolous arguments. These scams encourage taxpayers to make “unreasonable and outlandish claims” in order to avoid paying their taxes.
- Falsely claiming zero wages. In this scam Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used to fraudulently reduce taxable income to zero. In this same scam taxpayers sometimes submit a false statement rebutting wages and taxes.
- Abuse of charitable organizations and deductions. This scam involves the intentional abuse of 501(c)(3) organizations where income and/or assets are improperly shielded from taxation.
- Disguised Corporate Ownership. The IRS explains, “Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.”
- Misuse of Trusts. In this scam, taxpayers are urged to transfer their assets into trusts in order to avoid paying taxes. Taxpayers are urged to consult with a tax professional before transferring money into trusts at the encouragement of someone else.
It’s important that taxpayers be aware of these predominant scams in effort to protect themselves from being taken advantage of. If you’re a tax professional, you should take the time to alert your clients to these Dirty Dozen tax scams.
Increase Your Profitability for less than $5!
Allen Bostrom, President and CEO of Universal Accounting, has written two books that help make businesses more profitable. Designed specifically for small business, In the Black presents 9 practical principles that enable readers to improve their business’s profitability, or the profitability of their clients’ businesses, immediately. Red to Black in 30 Days is a guideline for financial professionals who work with disheartened small business owners in need of a good turnaround plan.
Recently, these two books were made available in Kindle format. Take advantage of this amazing deal! These books, purchased at regular price, would cost you $50. But when you download the Kindle versions—which give you immediate access to this valuable information—they only cost you $5; that’s 10 times less than retail.
If you would like to learn more about these two books, visit their corresponding websites at In the Black and Red to Black. Or order your Kindle copies today!
Also called “working smart,” efficient work strategies can makes any small business more profitable as owners determine how to get more done in less time. And because we are in the middle of tax season, getting more out of your work day could help you and your business become the premier tax practice in your area with a larger clientele and greater revenue.
So what strategies work best for the tax preparer? In a recent article in CPAPracticeAdvisor.com, author Mark Albrecht offers “Five Timesaving Tips for a Smoother Tax Season.” Here are three of five things he suggests we focus on.
1. Communication. Albrecht recommends that every practice have a clear communication process for all those they work with. He says key elements of that communication process should:
- Clearly state when, how and where to submit tax information.
- Give the deadline for tax data, making it clear that failure to meet that deadline results in an automatic extension.
- Provide disclosure and consent forms.
- Use this as an opportunity to manage expectations, emphasizing constraints on your time.
2. Digital Work Environment. Ensuring that you have all the technology you need to run an efficient practice is an important element in developing helpful workflow strategies. Creating a digital work environment can save you a lot of time in the long run. This includes adopting tax software that can make your life easier. Thankfully, tax software has grown up over the last few years. Products have advanced with improved functionality to meet your business needs. Take the time to select the software package that will enable you to best serve your clients.
3. Process Improvement. This might be best tackled after tax season is over. Albrecht explains, “In an ideal scenario, you would have time to create a committee, document current processes, identify best practices, optimize for technologies used, map your new workflow, standardize and train across the firm, and automate workflow for a digital environment.” Chances are you will only be able to run through some of these tasks. However, the most important thing is that you take the time to assess your workflow strategies and make plans for improvement.
Universal Accounting Center’s Solution to Higher Efficiency
The wise financial professional looks for ways to add complementary services to their menu in order to get those higher-yielding clients to do even more business with them. In doing so, you increase your earning-potential and your appeal to prospective and current clients.
By adding small-business accounting services to your menu you are able to increase your billable hours, which in turn, increases your bottom line. UAC’s Professional Bookkeeper Program will teach you everything you need to know to manage a small business’s books, including how to market those services to prospective clients.
To learn more, order our video Introduction to the Professional Bookkeeper Program. This video will introduce you to the four module included in this course, demonstrating just how valuable it can be to you and your business. Survive the recession by adding accounting services to your offerings. What do you have to lose? Watch it online now for free.
Resource
Albrecht, Mark. “Five Timesaving Tips for a Smoother Tax Season.” January 2012 CPAPracticeAdvisor.com
In a recent Entrepreneur.com article, author Michelle V. Rafter shares “10 Workplace Trends to Watch in 2012.” Whether you work fulltime for an employer, part-time for yourself or overtime in your own practice, it’s important that you be familiar with evolving workplace practices, because only then can you take advantage of those that will best benefit your career.
In this article we share 5 of Rafter’s 10 trends—those which we feel are most applicable to the finance industry:
1. Mobile Devices. Just about everyone has a smartphone these days. In fact, you’d be hard-pressed to find a selection of traditional cellphones in any provider showroom. And while many employers may worry about confidentiality and employee time wasted on Facebook, mobile devices like iPhones, iPads and other portable electronics are quickly becoming mainstream in just about every profession.
2. Telecommuting. A decade ago, you’d find most employers weary of allowing their workers to telecommute. But what many of them have since discovered is that, when managed properly, allowing employees to telecommute often saves them money in office expenses while, in many cases, increasing productivity.
3. Instant communication. Gone are the days when email was the fastest way to communicate. Regardless of what you do, your clients, colleagues, coworkers and bosses are generally coming to expect to hear back from you more quickly than they have in the past. This may require you to take advantage of social networks and texting as a quicker means of engaging with business associates.
4. Web-based software. Web-based software enables individuals to work collaboratively on day-to-day operations. And if you manage your own practice, taking advantage of online financial management software tools, like those offered via Intuit’s QuickBooks, will enable you to always have access to the current data.
5. Independent contractors. Rafter explains, “It’s the age of the free agent, and not just in sports. Many people are working as independent contractors, not because they can’t find permanent fulltime corporate positions but because they want to.” This means many businesses are more open to outsourcing things like their accounting and tax planning and preparation. If you’ve considered becoming an independent contractor yourself, now is the perfect time.
The professional workplace is evolving, and many of the current trends will prove to be beneficial to your career, as long as you are aware of what they are.
Start Your Own Bookkeeping Service
Are you interested in quitting your day job to become an independent contractor offering bookkeeping services? Designed to train individuals in small-business accounting, the Professional Bookkeeper Program enables students to gain the expertise necessary to launch their own accounting practice. Here are what a couple graduates have to say about the program:
I can honestly say that the hands-on training from Universal Accounting Center was far more helpful than that of my degree program. The training I received in you class was superb, exactly what I needed for the type of accounting business I was trying to start. I have been so pleased with the training I received from you, that my two part-time employees are currently taking your course. – S.A. Ivins
As an average for each client I am making about $30 – $50 an hour, I’ve been able to quit my full-time job. Thanks again to everyone at Universal Accounting Center! It has created for me a brighter outlook financially, as well as more free time in my personal life. And, I didn’t have to go to college for years and pay thousands of dollars for an education. — S. Thomas
In four weeks, your course taught me everything, and I mean everything, I would need to know about starting my home bookkeeping business. I am making more money than I did when I was employed full-time and I arrange my schedule to fit my needs, not arrange my life to fit my job’s. I can honestly say, this was the best investment I have ever made in my life! – S. Myers
For 30 years Universal Accounting Center has been demonstrating just how easy it can be to launch your own bookkeeping serivces as long as you have the knowledge and skills necessary. Let us share them with you. They can make a difference in your life and the life of your family.
There’s no time like the present to change your future and achieve greater professional satisfaction. Enjoy the freedom of self-employment, including the ability to achieve an increased salary, an improved lifestyle and the chance to do what you’ve always dreamed. Call Universal at 1-877-833-7909 to enroll in the Professional Bookkeeper program now!
Resource
Rafter, Michelle V. “10 Workplace Trends to Watch in 2012.” 4 February 2012 Entrepreneur.com
Hiring Your First Employee
If only you could clone yourself, right? You would have twice as many clients and the capacity to bill for countless hours. But there’s still a way for you to expand your business without enlisting mad-scientist help: you can hire a part-time or full-time employee.
In just about every small business, there comes a time when the owner must decide whether or not to expand and hire employees to help them accomplish more; you can assign simple and tedious tasks to a trainee while leaving the more difficult tasks to yourself. While you’re still paying this employee, it is less than what you charge, enabling you to increase your clientele and your bottom line.
Chances are you’ll need to hire someone who needs a little training; you couldn’t afford to hire another you! So where do you look for a potential apprentice? Here are 5 places you might find the perfect employee.
1. Your Children. Maybe your children don’t even mow the lawn when you ask them to, but money is an amazing motivator. Let’s say you charge $40 an hour, and you hire your teenage at $10 an hour. That’s a great deal for your child who would earn minimum wage at the nearest fast-food restaurant; and you would still be making $30 an hour for ever hour your child works doing basic tax preparation tasks. You’re teaching your children valuable skills, providing them with great experience, and expanding your business all at the same time. And there are some tax benefits for keeping this business in the family as well!
2. Referrals from Family and Friends. This could be a little tricky; the last thing you need is a guilt trip to hire unemployed Cousin Joey. So have a game plan when you approach family and friends for referrals; clearly define the type of individual you’re looking for. You’re willing to train but unwilling to hire someone and all their baggage as a favor.
3. College Campuses.If you live by a technical school, community college or university you have a great pool of students to hire from. You need to remember that you’re providing individuals with a great opportunity to learn new skills and gain the experience they need to advance in a profession. Contact their academic finance departments to see if they could post the position for you; if you talk to the right person you just might find them referring a few of their top students your way.
4. Temporary and Permanent Employment Agencies. A temp agency provides a good opportunity to find someone with specific skills to work on a trial basis. There’s no obligation to hire the individual permanently, so you can test-drive their performance in order to see if the individual is a good match. The only downside is that if you choose to hire someone from a temp agency, you’ll have to pay the agency a finder’s fee.
You’ll also have to pay a fee if you hire someone from a permanent employment agency. The nice thing about this route is the agency can do the screening for you, enabling you to meet only the best applicants whose references have already been checked.
5. Want Ads (the good old fashioned way). Or you could post an ad in the paper or online. Be sure to ask for resumes and references so that you can screen all applicants before you begin interviewing.
At any point in this process it’s important to remember that you want to find the best applicants you can so that you won’t have to go through it again anytime soon. And remember that while you may have to train your employee upfront, if you find the right person he/she will save you lots of time and money in the end.
UAC’s Training Programs Will Help You Gain That Competitive Edge
Universal Accounting Center offers the best accounting, bookkeeping and tax training available. Consider growing your tax preparation business by offering additional services to potential clients, like accounting.
Most of your competitors don’t offer specialized small-business accounting services. But after completing the Professional Bookkeeper (PB) program, you can! Consider a training program that is catered to your needs and busy schedule—one that will enable you to earn a professional designation after just 60 hours of your valuable time.
When you enroll in the Professional Bookkeeper Program you receive to the following:
- Flexible training you complete on your own schedule
- Rich and engaging training DVDs you can view again and again
- Hands-on instruction and practice sets through which you gain much-needed experience
- Training in building and marketing your new practice
- 6 months of valuable follow-up support
- The opportunity to earn professional certification
- Our iron-clad risk-free guarantee
Expand your service offerings by enrolling in UAC’s valuable training programs. Call 1-877-833-7909 to enroll today!
New in 2012: Due Diligence Checklist Filing Requirement
On December 20, 2011, the IRS released regulations requiring paid tax preparers to file due diligence checklists with every return claiming the Earned Income Tax Credit (EITC). The Paid Preparer’s Earned Income Credit Checklist, Form 8867, was previously required of tax preparers to complete and retain in their own personal records; it was intended to help them acquire the necessary eligibility information from their clients.
The IRS press release explains, “The regulations also reflect recent congressional action to increase the penalty for noncompliance with the due diligence requirement from $100 to $500.”
For more information on these final regulations, refer to the Treasury Decision 9570 published in the Federal Register.
Extended Deadline for Various Tax-Exempt Organizations
On December 16th, 2011, the IRS announced that it had extended the January and February filing deadlines for tax-exempt organizations until March 30, 2012. Due to portions of the IRS’s e-filing system being offline during January and February of this year, the IRS has granted the extension. The rest of the system will be fully operational and all businesses and individuals are expected to file accurate and timely returns.
The extension applies to all those tax-exempt organizations whose normal filing deadline is either January 17th or February 15th of this year; this includes those organizations that had an extension deadline for these same dates. The majority of tax-exempt organizations have a May 15th filing deadline and will be unaffected by this extension.
For more information, refer to Notice 2012-4 posted on IRS.gov.
Payroll Tax Cut Extended into 2012
The reduced payroll tax rate effective in 2011 has been temporarily extended into 2012, benefiting nearly 160 million workers. The cut, which reduced the Social Security tax withholding rate from 6.2 percent to 4.2 percent, will continue to be in effect through February 29th, 2012 and will have no effect on employees’ future Social Security benefits.
Employers are expected to implement the new tax rate as soon as possible in 2012 but no later than January 31, 2012. Any Social Security tax over-withheld in January should be compensated in an offsetting adjustment in employee pay as soon as possible and no later than March 31, 2012. Employers and payroll companies must manage the withholding changes; employers are not required to take any action.
The press release explains, “The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.”
Earning a Professional Designation is Good for Your Professional Reputation
Whether it’s enhancing your skill-set with a current employer or distinguishing yourself by building credibility with your own clients, the QS designation will stand as proof of your expertise. To earn this QuickBooks designation you must complete the Professional Bookkeeper’s Guide to QuickBooks (PBG) and pass the final exam with a score of 90% or higher. And just like that you receive professional certification!
Additional Benefits
In addition to the skills you acquire in completing the PBG, you will also receive the following:
- Thorough and complete training on the latest and greatest version of QuickBooks Pro
- 6 months’ worth of access to our experienced, qualified QuickBooks professional accountants and CPAs to answer your questions
- Accounting 101 Review
- 30 hours of Continuing Professional Education (CPE) in most states
- A 100% money-back guarantee
- A valuable addition to your reference library
The PBG offers the most competitive QuickBooks training on the market. Master QuickBooks and become the premier QuickBooks consultant in your area. Call Universal at 1-877-833-7909 and enroll in the Professional Bookkeeper’s Guide to QuickBooks today!
The tax season is officially upon us, which means only one thing: you’re about to be sucked into the black hole of tax preparation!
Okay, so it’s not that bad, but it will consume the majority of your time for the next few months. So why not ensure that you’re making the most of that time?
A 2005 Microsoft survey found that professionals only average about three productive workdays every week. When you’re paid by the hour, that reduces your income by 40%. That’s a painful statistic for the self-employed.
But it doesn’t have be that way. When you apply effective time management techniques, you use the workday to your advantage, maximizing your income by using less time to accomplish more work-related tasks. Here are 6 tips we strongly recommend:
Delegate and outsource when possible. In a Small Business Review article, author John Egan lists this as his number one time management tip. In his article he references Dave Durand, a time management expert who says small business owners should never engage in “minimum-wage work.” He suggests handing those tasks off to someone else so the small-business owner can keep their “eye on the horizon.” Sometimes it just doesn’t make sense to do everything yourself. It’s wise to delegate and outsource some of those tasks that are too time-consuming for you, whether you partner with another professional to do them, or whether you assign the responsibility to someone within your organization.
Avoid time traps. No profession is immune to time leaks—interruptions, distractions, tangents that lead you off-task and make it difficult to be productive. And it is impossible to plug those time leaks unless you know what they are. Take a week or so to log interruptions, noting all those things that distract you from your core work tasks, specifically billable hours. Once you have the information, you can evaluate it. Which interruptions could have been avoided? Which were of no value? Perhaps someone regularly calls you for information that you could teach them to find themselves? While the teaching moment may cost you an hour now, it may save you hours in the end.
Avoid multitasking. Most time management experts agree that splitting your attention amongst a slew of tasks can lessen productivity while generating more errors. Focusing your attention on one task is the best way to accomplish more in less time and with greater accuracy.
Use “50% of your time engaged in the thoughts, activities and conversations that produce most of your results.” This tip comes recommended by authors Joe Mathews, Don Debolt and Deb Percival in an Entrepreneur.com article entitled “10 Time Management Tips That Work.” It makes sense to focus your energy on those tasks that bring in the bacon. However, often what we focus on isn’t necessarily what produces results. Shifting your perspective on how you prioritize your time may be all it takes to put this principle into effect.
Plan each day. Mathews, Debolt and Percival recommend you take 30 minutes each morning to schedule your workday. Determine which tasks are most important and timely. That way you ensure that you’re not only productive but responsible, completing those jobs that need your attention first. Then, referring to that list of tasks, make a to-do list (and don’t forget, 50% of your day should be dedicated to those activities that produce the most results).
Plan for the big picture. While it’s important to plan your daily schedule, you should also look ahead and make plans for how you’d like to accomplish your vision. This includes the big picture on where you see your business going, taking steps that will ensure you get there.
UAC’s QuickBooks Training Program
The Professional Bookkeeper’s Guide (PBG) to QuickBooks is designed to help you master all the software’s features and shortcuts, enabling you to work much more efficiently. With 16 instructional CDs that contain 15 hours of training and an 800-page full-color instruction manual, you will have access to all you need in order to address your every client’s needs.
Upon completing the program you will be able to do the following:
- Pay bills quickly so that you and your clients never incur late penalties
- Be reminded when bills are due
- Write checks with one single click
- Create invoices quickly and effortlessly
- Become more organize by streamlining the process of tracking customers and vendors
- Keep on top of incoming and outgoing payments
- Access easy-to-read financial reports NOW
- Earn valuable certification as a QuickBooks Specialist
UAC’s Professional Bookkeeper’s Guide to QuickBooks (PBG) will enable you to master this accounting software, saving yourself time and energy as you work with your own and/or your clients’ accounts. To become more efficient by learning all the time-saving features QuickBooks offers, call Universal at 1-877-833-7909 to enroll in the PBG Program today!
Resources
–. “Survey Finds Workers Average Only Three Productive Days per Week.” 15 March 2005. Microsoft.com
Egan, John. “Time Management Tips.” SmallBusinessReview.com
Mathews, Joe, Don Debolt and Deb Percival. “10 Time Management Tips That Work.” Entrepreneur.com
In a recent Entrepreneur.com article, J.D. Roth, a self-proclaimed accidental personal-finance expert, suggests five tips in securing personal financial security regardless of the flailing economy.
And Roth should know. In 2005 he found himself overwhelmed by debt. He made a personal decision to change that and read everything he could on money and financial management. In 2006 he started the website Get Rich Slowly which quickly became a popular personal-finance blog. He now gives advice to a community one-half million readers strong.
This information could be invaluable to your own clients. Sure, you help them manage their business financials, but where they really might be struggling is in their personal financial management. One way you could assist them is in distributing a tip sheet on effective personal money management; in fact, you could send it as part of your holiday well wishes for them and their families. Consider including Roth’s proven strategies:
1. Stash savings. Many individuals have lost their jobs with no savings buffer to fall back on. While many different sources recommend how much money you should save in a fallback account, Roth says the exact amount doesn’t matter. It’s just important that you have enough to prevent unemployment panic.
2. Limit debt. Roth explains, “A mortgage isn’t a bad thing, and neither are student loans. A car loan is borderline, though, and borrowing to buy a television is foolish.”
3. Practice thrift. Some of the richest people in America are thrifty, so it shouldn’t be considered a poor-man’s practice. In fact, frugality is a good habit even in economically “fat” years when most individuals experience “lifestyle inflation.” To embark on a frugal life, Roth recommends starting by reducing regular monthly expenses.
4. Invest wisely. Roth says, “Don’t let the news lead you to make emotional decisions. …be sure your investment portfolio matches your risk tolerance.” Do the research and stick with those financial investments that best suit your financial philosophy.
5. Ignore financial news. Roth uses the example of the housing bubble during which time many individuals followed the media hype and invested in real estate only to encounter its collapse, a reality that has left many in foreclosure. As mentioned in tip number four, it’s important that you ponder your financial decisions and how they relate to your personal situation without giving in to the media hype, positive or negative.
If you’re interested in sharing other tips that will help your clients better manage their financials, consider the following two books which enable businesses to establish a healthy financial foundation:
In the Black—Written by Universal president and CEO, Allen Bostrom, this book will guide you in effectively increasing your clients’ profitability using improved accounting and business metrics – a must for organizations of all sizes. Are you In the Black?
Red to Black in 30 Days—The recession is hitting small businesses hard, and many are failing right and left. Red to Black in 30 Days, also written by Allen Bostrom, will teach you the Universal Project Management Model, enabling you to help save failing businesses. Using this valuable book as your guide, you can add turnaround services to your offerings. Buy your copy today.
Share your financial tips for clients here in our comments section!
Resources
GetRichSlowly.com
Roth, J.D. “How to Regain Control over Your Personal Finances.” 1 November 2011 Entrepreneur.com
The Internal Revenue Service is enabling employers to voluntarily reclassify workers for a minimal payment in order to achieve compliance and cover past payroll obligations. This enables employers to avoid an IRS audit and potentially costly penalties. It is just one element of a “Fresh Start” initiative designed to help taxpayers fulfill all their tax obligations.
Doug Shulman, IRS tax commissioner, explains, “This settlement program provides certainty and relief to employers in an important area. This is part of a wider effort to help taxpayers and businesses get a fresh start with their tax obligations.”
Called the Voluntary Classification Settlement Program (VCSP), this plan enables qualified employers to secure considerable relief from unpaid federal taxes as long as they change the designation of workers and independent contractors to employees when the classification so applies.
To be eligible, the IRS requires the following from applicants:
- Consistently have treated the workers in the past as nonemployees,
- Have filed all required Forms 1099 for the workers for the previous three years
- Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers
Those wishing to take advantage of the program can file Form 8952. It must be submitted 60 days before they begin treating workers as employees. Those accepted into the program need only pay a little over one percent of wages they paid in the past year to reclassified workers. They will not be required to pay interest or penalties. The IRS press release explains, “Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.”
For more information, visit the IRS.gov.
Order Your Copy of Red to Black, Today!
Businesses that struggle with this classification issue, are often experiencing deeper issues with the profitability of their businesses. If your clients are in the red, you can help them change that!
Discover how to use accounting information to help turn a business around. Red to Black in 30 Days will give you all the tools to apply the Universal Project Management Model required to save failing businesses. This book is a guideline for accountants, tax preparers and consultants who work with these disheartened small business owners. Each chapter focuses on a crucial aspect of the turnaround process. Simple steps are outlined from initial contact through stabilization and profitable growth. This can be the guide through your first turnaround experience or enhance the accounting and management skills of even the seasoned financial professional.
For the cost of this one book you can enhance your value to current and prospective employers. Order your copy now.
Recognizing Four Different Thinking Styles Can Help You Be a Better Manager
The question is not what you think, but how you think it. In a recent BNET.com article, Kimberly Weisul, author of the column Leadership Lab, suggests that knowing the thinking styles used by yourself and those you work with can help you run a better business.
According to Thunderbird professor Denis Leclerc, the fact that individuals use different thinking styles can be problematic, especially when it results in poor communication and sometimes even hostility. Recognizing these thinking styles and being able to anticipate the questions from different thinkers can, according to Leclerc, save your sanity. So what are they?
Deductive Thinkers
Apparently Sherlock Holmes is classified as a deductive thinker, always questioning why before plowing forward. In fact, deductive thinkers are the least likely to follow a boss’ orders without question. They need to understand the logic underlying the tasks they’ve been asked to complete. Questions they are likely to ask: Why are we doing this? Why is this project more important than others? Why should I care?
Inductive Thinkers
These thinkers are most likely to ask “how” rather than “why.” They like to work with lots of specific information in order to create general knowledge. For example, Charles Darwin, a famous inductive thinker, gathered an incredible amount of information regarding the finches of Galapagos in order to create his more general theory of natural selection. Questions they are likely to ask: How did we make this decision? How will we change? How did we do this last time?
Linear Thinkers
While you may think your lectures about vision inspire everyone in the office, you’re missing the mark with these thinkers who simply want to know how they’re going to get from A to B to C which means they want detailed instructions on how to accomplish assigned tasks. Questions they are likely to ask: When is it due? What needs to happen first? Who does what?
Systemic Thinkers
These thinkers don’t ask many questions simply because they’ve got their eye on the prize with little concern on what it’s going to take to get there. Steve Jobs is a good example of a systemic thinker. Apparently when he instructed his team on creating the first iPod, his vision of the end product was all he provided. He told them he wanted something that 1) didn’t use any screws, 2) could be controlled with the thumb and 3) changed the way people listened to music forever.
Recognizing the thinking style used by colleagues, clients and employees can help you engage in more meaningful discussion about goals, tasks and even prospective problems. What kind of thinker are you?
Unassuming topics like this can help you better manage your business and advance your career. Consider how Universal can help you sift out what will and won’t help you become a better professional. Join our free accounting and tax forums, follow us on Twitter and like us on FaceBook. You’ll be surprised at how community encourages creativity and career enhancement.
We welcome your feedback in our comments!
Resource
Leclerc, Denis. “Embrace Four Thinking Styles to Save Your Sanity.” 25 July 2011 Thunderbird Knowledge Network
Weisul, Kimberly. “Four Styles of Thinking, and Why You Need to Know Them.” 11 August 2011 BNET.com
Whether you’re older or younger than prospective clients, you have a prospective problem, but it doesn’t have to stay that way. Recognizing the potential gap is half the battle; closing it is the other half.
In a recent Entrepreneur.com article entitled “How Young Entrepreneurs Can Bridge the Generation Gap,” author Matthew Toren suggests three remedies to this problem, especially for those who may appear young and inexperienced to a more ‘mature’ clientele:
1. Know what you’re talking about.
The truth is, if you’re a true industry professional, your knowledge about tax preparation is all you need to demonstrate your expertise. When you try to wing it, you’re perceived at a flippant upstart, and that won’t get you anywhere. If you need training, get it. If you lack knowledge, acquire it. Once you do, it becomes much easier to talk the talk and walk the walk.
2. Admit that you don’t know everything.
Only God is omniscient. No one else can be expected to know everything. Once you admit that to yourself, it becomes easier to admit it to your clients. Toren explains, “Most young entrepreneurs try to overcompensate for inexperience by talking as though they’ve got it all figured out. The only thing worse than not knowing all you should know is not knowing, and then acting like you do.” He suggests finding a mentor to help walk you through those trouble spots you encounter; that way, instead of telling clients you don’t know something, you can instead say, with confidence, “I can find the answer to that for you.”
3. Clean up.
Regardless of what you think is trendy, the truth is that current and prospective clients will judge you, and possibly your professionalism, by the way you present yourself. While this may not be fair, it’s expected. So if you want to be taken seriously, you’re going to have to dress the part.
You may think the age gap won’t impact your ability to perform well for clients, and you would be right. But their perception that it will is where your problem resides. Following these three simple tips will help you eliminate those concerns.
Universal Accounting Will Help You Walk the Talk
If you find your skills and knowledge lacking, Universal’s tax training will help you acquire the expertise you need. UA’s Professional Tax Preparer (PTP) program will also enable you to hone your skills and comply with the new IRS tax preparer regulations while establishing your home-based tax business. Not only could you earn a professional designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete. The four models include the following:
1. Establishing the Tax Foundation. Learn the entire process for determining income and adjustments to income, which will factor into the Adjusted Gross Income. In fact, you’ll cover all the information necessary to prepare Page One of Form 1040.
2. Becoming the 1040 Expert. This module deals with background information and forms that go into the 1040, Page 2. We also discuss all the adjustments that can be made to gross income, including credits that are allowed and different types of deductions and exemptions that can be taken against that adjust gross income number.
3. Profitable Business Returns. Here we introduce you to the world of business organizations and their tax concerns. This module is a practical companion to Module 2, as it give you experience in completing each of the schedules and forms common to business organizations.
4. Building Your Successful Tax Practice. Get a head start in creating and running your own tax preparation service. You will find yourself light years ahead of the competition as you put these strategies into play.
UAC’s income tax training will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with step-by-step instruction in becoming a sole practitioner, one year of follow-up support from expert tax preparers and our iron-clad, risk-free guarantee.
Hone your skills, earn a designation, and comply with IRS regulations. Three birds, one stone. Call Universal Accounting at 1-877-833-7909 to enroll today.
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Resource
Toren, Matthew. “How Young Entrepreneurs Can Bridge the Generation Gap.” 5 August 2011 Entrepreneur.com
Recently the IRS released its annual list of “Dirty Dozen” tax scams in attempts to warn taxpayers of fraudulent activity that could cost them considerably if they are caught unaware.
