Paul N. Gada, tax attorney and writer has said,”Tax filing insights can come in various forms, but just about all of them can be grouped into two categories: those dealing with the mechanics of your filing method and those that should be tied to your overall tax planning for the year.”
It may only be October, but it really is time for your clients to start thinking about taxes. In fact, it should be on the agenda all year long. It’s been said that the difference between tax planning and tax filing has to do with what the date is. After December 31st the time for tax planning has come and gone. It’s time to file.
Tax Simplification is Not So Simple
In an article published on CNN:Money back on July 21, 2005, Krysten Crawford said, ” In the nearly two decades since Congress last cleaned up tax laws, more than 14,400 changes have been made to the Internal Revenue Code. Today the code and its myriad regulations take up nearly 100,000 pages – with a word length that is about 10 times the size of the standard English version of the Bible.”
Despite promises to simplyfy the tax code, we still have a very complicated tax system. As congress changes and adjusts the tax code every year, the need to make tax planning a year-round process becomes more and more important. And the need for a small businesses bookkeeper and accountant to be actively engaged in the process is even more critical.
You Can Help Your Clients Plan Now to Save Later
Most small business owners work very hard at the day to day responsibilities of operating a business. They work IN the business and never get around to working ON the business. Especially for small business, keeping sight of the big picture is really important.
Michael Gerber, in his book The E-Myth, states that as a general rule, CEO’s should focus 90% of their time on the coming year and 10% on today. They should work on issues that will improve the business in some way.
I’m convinced that this also applys to tax planning. Often, the daily decisions we make have long-term tax ramifications that need to be considered as the business moves forward. The bookkeeper and accountant are in a unique position to assist the business owner as he works in today and plans for the future.
Look to the Future and Your Clients Will Appreciate Your Value
Many organizations find it very helpful to begin each year with some dedicated time to forecast into the future. Often this envolves sales goals, customer service objectives, large equipment or other purchases, but it should also include how those decisions might impact the company’s tax obligation for the coming year.
As the bookkeeper/accountant you will want to keep up to date on basic tax issues and have a good working relaitonship with the company’s tax accountant to be informed of specific tax issues and how they affect the business. (You might also consider adding Professional Tax Preparation to your list of services to add even greater value to what you might already be doing. Click here to learn more about what Universal Accounting Center can do to help you add Professional Tax Preparation to your Bookkeeping service .)
Planning for Tax Savings in the Future Will Help the Overall Health of the Business Now
The real purpose of forecasting and planning isn’t all about a company’s taxes. (Although taxes should be a big part of it.) It’s all about improving profitability in the long term. Every business needs some sort of planning process, whether it’s a year end session for the coming year or for the next quarter, the next month, or the next week. In his book In the Black:Nine Principles to Make Your Business Profitable, Allen Bostrom gives some important planning questions that need to be asked about the company’s next fiscal year:
- What are your major objectives for next year?
- Will you need new equipment? How much will that cost? How will you pay for it? What are the tax ramifications of purchasing this equipment?
- Which profit centers are really working? Which are not? What changes need to be made?
- Will you need additional people? When? How many?
- What will be the financial and tax impact of the changes, as you are planning for the future?
- How will these plans affect your profitability next year?
Adding Tax Planning Services to You Product Mix Will Help Your Accounting and Bookkeeping Practice be Even More Profitable
The logical “next step” for many Professional Bookkeeping and Accounting Practices is to add Professional Tax Preparation Services to the mix. I feel so strongly about this, that I’d like to offer you a special bundled price if you purchase both the Professional Bookkeeper Program and the Professional Tax Preparer Certification together.
Special Bundle Pricing for Tax Preparation and Accounting/Bookkeeping Training
When you choose to purchase complete business service training, we will give you a significant discount. This includes things to get your business started such as Universal Accounting’s guide to Financing a Small Business, which shows you how to get funding for your business.
Universal Accounting’s Ironclad
100% Money Back Guarantee
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“If, after completing the course, you feel the course didn’t live up to your
expectation, simply return the materials to Universal, for a 100% refund of any monies paid.”
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You risk nothing!
Become a Full Financial Services Provider
Grow Your Business by Offering Both!
There is a notable difference between tax planning and tax preparation: THE DATE. Tax planning must occur BEFORE the year ends, and tax preparation begins AFTER January 1st. There’s a terrific marketing advantage to the tax preparer who understands how to profit from this concept.
On several occasions as a tax preparer I have received the “shoe box” from clients who have gathered financial information from all corners of their house or office. Their instructions, whether verbalized or not, are, “Please make it so I don’t have to pay any taxes.”
Typically my reply is, “I’ll do all I can, but the window for most tax benefits ended December 31st — it’s too late to do much about it. May I suggest that we get together after April 15th to do some tax planning for next year?” I let them know that the consultation is free and then attempt to set the appointment. Rarely does the client decline.
During the 10 to15-minute tax planning meeting, I will review their prior tax return and discuss several alternatives they may wish to consider. They relish feeling in control of their tax position.
Additionally, if they have a small business (which is becoming more common), I suggest that, for a monthly retainer, I would be glad to monitor their finances more closely to squeeze every possible tax dollar, plus identify other profit-rendering ideas.
This technique not only generates greater loyalty and REFERRALS from your tax clients, but it also ensures you a monthly income stream from bookkeeping revenues during the rest of the year.
Learn Tax Planning and Preparation
Tax Preparation is just the first part of the Professional Tax Preparer (PTP) Program; you will also learn how to advise businesses to structure their organization to reduce their tax burden. You will assist them to strategically place themselves in a position today that will reap tax rewards next year. While tax preparation peaks around the tax return deadline, there is great money to be made all year long optimizing organizations to take advantage of tax benefits and exemptions. Universal Accounting is the only organization authorized to award the Professional Tax Preparer (PTP) certification. This is an exclusive designation which shows that you are proficient in personal and small-business tax preparation. The PTP certification gives your clients the confidence that you have mastered hands-on tax preparation with emphasis on small business tax returns. Not only that, but the PTP Certification is unlike any other tax training course available on the market today. Although similar to other courses in that it provides training on the common 1040 forms, the Professional Tax Preparer Certification is the only DVD course that offers additional training in in-depth marketing strategies; partnership, limited liability corps, and corporate returns; fee schedules; interviewing techniques and much, much more.
Learn Small Business Accounting
Small business accounting is a valuable niche market. In fact, over 90% of accounting opportunities can be found in the small business arena. Universal Accounting Center (UAC) has been training professionals like you in small business accounting for over 25 years because they recognize what many do not; most universities and trade programs are teaching students corporate accounting which isn’t preparing them for the typical, real-world accounting experiences they will encounter.
Becoming a small business accountant doesn’t require years of your valuable time. UAC’s Professional Bookkeeper (PB) Program is not only reputable, but it’s self-paced, enabling a busy professional like you to take your time or complete the program quickly, in less than 60 hours.
You will gain the confidence and skill necessary to start and manage nearly every client’s books, and when you have a question, our follow-up program enables you to call and ask one of our seasoned professionals.
Expand your business by offering tax preparation, tax planning, and bookkeeping services. You’re two simple courses away from doing both. Enroll in the Professional Tax Preparer Program and the Professional Bookkeeper Programs today!
It’s mid-summer and you’re probably experiencing a lull in business; not too many are interested in taxes this time of year. What are some things you can do? We have a suggestion. Why not use this time to enhance your skills and become a full service financial provider? You’ll be able to increase your service offerings and turn your business into a full-time, year-round venture. It’s finally time to quit your day job and give yourself a raise.
How Easy Is It?
You may think that adding accounting services to your offerings would require a lot of time, energy, and money. That’s simply not true. In 60 hours you could not only have the skills, but the confidence to perform small business accounting for a growing niche market. Universal Accounting Center’s Professional Bookkeeper (PB) Program provides hands-on training in the day-to-day accounting tasks required by small businesses. From payroll to bank reconciliations, you’ll learn how to manage more than your clients’ books; you’ll also become their Profit Expert, informing them how they can increase their business’s profitability and success. Imagine how valuable that service would be to small business owners who often struggle to last longer than 5 years.
Testimonial: This course has really helped open options I never thought I had before. The training was easy to understand, and the hands-on work emphasizes that understanding and know-how.-Barbara W.
How Much Could You Make?
We’ll do more than give you an average income range; we’ll share an equation that will help you calculate how many clients you will need to earn the income you desire. You can charge the average client $300/month. If you have 20 clients you’re earning $6000 per month. That’s $72,000 in one year, and that number doesn’t even take into account how much you earn during tax season. Depending on your needs, you can increase or decrease the number of clients in order to hit your target income.
Testimonial: As of July 1st, I am leaving my job of 15 years and working my business full time. I already have enough clients, on contract, to give me a larger annual income than I had working for my employer.-Robbie Ursu
How Many Clients Could You Have?
We challenge you to take a drive down your main street or thumb through the yellow pages of your local phone book. How many small, local businesses can you find? And that doesn’t even include the countless entrepreneurs working from their homes. Your potential client base is huge and continues to grow every year.
Testimonial: After completing UAC’s training I opened my business. I now have 15 clients, and have only had one meeting that did not result in a new client.-Victoria Richardson
How Long Would It Take To Get Started?
The Professional Bookkeeper Program is designed to teach you everything you need to know to get started. And because operating an accounting and bookkeeping practice from your home requires little to no startup costs, you could have your practice up and running as soon as you’re ready. This program is practically a ready-made business; you add confidence and stir.
Testimonial: I did not imagine that I could face this world out there and talk confidently about accounting and bookkeeping, let alone start my own business in it. But having this class, I have developed the confidence that I need to go out there and be on my own and the confidence to make a go at it. I’m ready to face the world!!!-Julie M.
Now is the perfect time to take advantage of a lull in business to grow your clientele and become a full-service financial provider. It’s not only easy, but profitable and can take just a couple months to get started. You’ve already got a strong base with your tax preparation business. Why not take advantage of your standing by growing your business this summer?
The Professional Bookkeeper Program
It’s never been so easy to grow your tax practice into a full-service financial consultancy. By adding bookkeeping services to your menu your business becomes busy year-round, enabling you to quit your day job and live your dream as a self-employed financial professional. Don’t delay your future; enroll in the Professional Bookkeeper Program today!
Inspire Client Loyalty While Increasing Your Client Base
Companies pay Joe Tamargo, a New York resident, to permanently tattoo their advertisements to his body. Now before you call him up to ask that he add your name to his forehead, consider that building strong relationships with present clients might be a little like sending them all out with your fliers in their pockets; if your clients are happy with your tax services, they will not only feel good about working with you, but they’ll also refer all their friends and family your way. So how do you build good client relationships? Here are five tips to building healthy and profitable relationships with your clients:
1. Be selective
When you first started your business you were probably willing to work with any tax-paying American with a pulse; the last time I checked that included everyone, regardless of flakiness, criminal history and/or poor credit ratings. Now we’re not encouraging you to run background checks on your clients, but you should use common sense before adding someone to your client base. To run potential clients (PC) through the selection process, ask yourself the following:
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- Is your gut saying “no way”? [Note: This should trump everything else. If your gut says no, we suggest you listen.]
- Does the PC balk at your rates?
- Is the PC trying to work a deal, getting more from you than you typically charge?
- Does the PC want to exchange services rather than pay your fees?
- Does the PC appear needy or exceptionally high maintenance?
- Does the PC want to defer payment?
- Is the PC a closet tax expert who wants to do a lot of the work him/herself with you working as a tax consultant?
- Is the PC on “the rebound,” looking for a new tax preparer following a failed relationship with another one?
While answering “yes” to one or two of the above questions does not necessarily mean you have a high-risk PC on your hands, answering “yes” to three or more questions just might. Be cautious and realize that just one high-risk client can cost you a lot of time and money in the end.
2. Exude confidence and enthusiasm
People want to work with a tax preparer that knows what he/she is doing and is excited about doing it. If most of your interactions with clients are positive and upbeat, they will generally feel good about working with you.
3. Define relationship and expectations
Many of your clients may not have worked with a tax preparer before and are unsure what to expect. The rest have worked with tax preparers and may be running on old expectations. It’s important to have a preliminary meeting where you define the relationship and your expectations, taking special note of what your clients expect from you. You may need to negotiate some of these expectations so that both you and your client are satisfied. To learn more about defining those expectations, read the article “Defining Expectations with Your Client: Starting off on the Right Foot” in next week’s newsletter.
4. Communicate
Every healthy relationship, regardless of whether it’s with a spouse, a neighbor, a cousin, or a client, depends on good communication. Be sure to communicate with your client regularly. You may want to send your client monthly emails, updating them on their account and what you’ve been doing for them. Also, return calls and emails in a timely manner; your client should expect to hear back from you and not be disappointed.
When you provide your clients with reports or tax returns be sure to explain them or, if they prefer, answer any questions they have at their convenience.
5. Help clients come out on top
Going above and beyond the call of duty will make any client happy. Recognize that your client wants to save as much money as possible. At first they may think you’re an expense they can’t afford, but if you show them how much money you can save them in the end, they’ll be more than happy to pay your fees.
When you first start your tax practice you may think success comes once you have a solid client base. While getting a few good clients is a good start, your success will be determined by how you maintain those relationships with your clients; when you build healthy relationships with your clients you create happy customers and a fleet of personal marketers who will go out and advertise your services for you. Don’t call Joe Tamargo just yet; word of mouth is still more profitable than the tattoo ad.
UAC Can Help You Increase Your Client Base
Since 1979 Universal Accounting Center has been training accounting firms in effective and inexpensive ways to build profitable accounting practices. With our own firm’s success obtaining clients and in helping 1000’s of others build a client base, we have developed a turn-key marketing solution called the “Universal Practice Builder.”
The Universal Practice Builder 2-day workshop teaches you the art and science of getting clients. The science makes it certain, and the art makes it easy. This 2-day hands-on workshop will give you the marketing tools and knowledge that are guaranteed to get you clients. Give us 2 days and we guarantee $30,000 to $100,000 in new annual billings. Don’t wait to grow your tax practice. Come visit Universal Accounting Center today!
7 Tips that to Help You Meet the Challenge of Starting Your Own Accounting and Tax Practice
Often what will successfully see you through startup is not a small business loan but a little self-coaching. Many small business owners spend more time worrying about their efforts than they do running their businesses. When you’re able to focus on what’s important, you’re better equipped to survive the highs and lows of launching your practice. Last week we discussed the first three of 7 tips designed to help you meet the challenge of starting your own accounting and tax practice:
- Self Assess
- Self Affirm
- Question Yourself
This week we’ll discuss the final four tips:
4. Grow Your Passion
Most people start their own practices because they’re passionate about what they do: accounting and tax preparation. If you’re passionate about your trade it’s important that you hone your expertise to become the premier financial provider in your area. This may require you to invest in additional training, earn professional certification, or build your professional network. Whatever it is, it should ignite that passion and feed your desire to better serve your clientele.
5. Place Yourself in Positive, Rewarding Environments
Have you ever noticed how being with positive, upbeat people leaves you feeling positive and upbeat? On the down side, placing yourself in negative and draining environments will leave you feeling negative and drained. As you build your startup it’s important to place yourself in the most affirming environments possible, enabling you to approach your practice with joy and enthusiasm.
6. Reduce Energy Drains
Related to number five is this tip: reduce energy drains. The truth is starting your own practice is a big enough drain on its own. If you find there are too many demands on your energy, watch for those which are unnecessary or unnecessarily taxing. Do you have a client that’s more trouble than they’re worth? A colleague whose competitive and flashy nature distracts you? Or perhaps a vendor that’s nagging you for too much attention? Once you pinpoint those energy drains it’s time to plug them up! Eliminate the source and you’ll find it’s not long before you’re feeling empowered and rejuvenated.
7. Build a Solid Support Network
It helps to start your journey by building a support network filled with like-minded professionals. Included in your support network should be seasoned accountants and tax preparers, veteran small business owners, and other professionals who could coach and advise you on your journey to startup success.
Partner with UAC to Launch a Successful Accounting and Tax Practice
The Professional Bookkeeper (PB) Program, a self-paced training course in small business accounting, is the perfect way to build your confidence and provide you with informed self-coaching techniques designed to help you succeed as a contract accountant or bookkeeper. Your time is valuable, and you don’t have an unlimited amount of time in which to see your business succeed. That is why this course is self-paced, enabling you to complete it on your own time and in as little as 60 hours, if you so choose. Not to mention, this course comes complete with proven marketing strategies that will enable you to attract the clients that will sustain your practice and make you the premier accountant and tax preparer in the area.
QuickBooks Made Profitable Will Make Your Business Even More Profitable
If you order the Professional Bookkeeper Program now, we’ll throw in another valuable program: QuickBooks Made Profitable. Most financial professionals know that QuickBooks is the most popular accounting software used by small business owners. You can use your QuickBooks skills to attract even more clients. Want to know how? When you order the PB Program, you’ll get QuickBooks Made Profitable for free! With these two programs you’ll learn how to not only enhance your service offerings, but market them effectively to the right individuals! You’ve waited for the perfect opportunity. Here it is.
Click here.
Historically this time of year for the Tax Preparer profession has been known as the “down time” or in the very least, the “quiet time” of the year. This time of year, for most paid tax preparers, is also known as the lean months where cash flow into your business can be minimal at best. Have you ever wondered, “Does it have to be this way?”
The simple answer is no. If you are proactive in how you do business and how you interact with your tax season clientele, you can grow your business during the January through April months, and bring in as well a steady flow of income throughout the rest of the year. By being the utlimate Professional Tax Preparer, you can provide a valuable service to those customers in this “quiet time” that will bring in the cash. The following are some ways you can do this.
Estimated Year Round Tax Payments
Depending on the type and structure of a company (LP, LLC, S-Corp etc.) each would have a requirement of when they send in tax information, or have taxes due throughout the year. As a Professional Tax Preparer and with you filing their yearly taxes, you can know which company you are servicing needs to pay which taxes when. With your recommendations to adjust these payments now, it will help your clients avoid over or underpayment penalties at years end. For those part-time self employed, these recommendations could be very timely so they don’t end up owing money.
Saving For Company’s Retirement Program
For those companies that you service that have one sort or another of a retirement program for themselves and/or their employees it is a very good idea to take a look at them mid-year. Many changes have happened in the last few years regarding IRA’s, 401(k)’s, pensions, and profit sharing programs, that it is important to review them to see if they are still performing as they were originally intended. This is also a good time to remind your clientele that as their business grows and changes they can be looking into setting up new programs for their company, and you can assist them to gauge the “what’s” and “wherefore’s” of rolling out their programs.
Take Advantage of Deduction Groupings
Be aware and keep your client company vigilant on keeping records on their expenditures. For the small business community this may take a monthly, maybe even a weekly reminder. So the company can stay eligible for the right deductions when their yearly tax filing comes along, there may be one or two types of deductions that have a threshold to reach to be eligible, or a cap to remain eligible for the deduction. Either way, by taking care of these tax-saving details, they will be more willing to contract for more and more of your services year round.
Changes In The Company Itself
Perhaps your customer has taken their business through a drastic change of some sort since April. Deaths and switching of company partners, ownership rights, even changing company structures (from a sole proprietor to a C-Corp for example) are all things that will change the taxes and their requirements of payment to the IRS and the state in which they reside. By being there, as their tax advisor, you will be able to help them navigate through these changes and mitigate their liabilities and possibly decrease their tax obligations with tax-saving suggestions.
Help Your Small Business Client Plan For Tax Savings
Here is another area that you can prove your worth to your clientele. Develop and help them along in their own customized plan to save on taxes. Several changes have happened in recent years that allow flexibility in expense deductions, carrybacks, carryforwards, employee benefit plans etc. Some small business may even be eligible for tax credits to help them recover the costs of starting up a company retirement plan. Timing of purchases, and assets can make a big difference on a company’s tax filings and some of these need to be timed just right within the year.
Remaining proactive with your Tax Business, whether part-time or full-time, you can remain that much more profitable 12 months in the year instead of just 4. When you treat those who you do business with, the way you want to be treated, with timely advice and cost saving suggestions, you are not only providing a value-added service that grows their company but you are also able to show them you care about their company’s financial health.
For over 25 years, Universal Accounting Center has helped people like you start their own tax practices. We recognize that 85% of the accounting opportunities are with small business so our curriculum is designed to help you learn small business accounting. Think back to our recommendation to increase your income by performing new services for new clients. When you learn small business accoutning you suddenly make yourself available to new clients whil increasing the number of services you can perform.
Give yourself a raise and become a Professional Bookkeeper today.
Meeting with a prospective client in order to pitch your services can be intimidating and nerve-wracking. Does it help to know that much of your prospective client’s decision will be influenced by their first impression of you? In fact, your contact will form that first impression within mere seconds of meeting. It’s important that you do your best to make it a good one. We recommend you consider the following when meeting clients to discuss your services.
To enhance your sales pitch and learn crucial marketing techniques, you can enroll in the Professional Bookkeeper Program. You can add new services to your offerings and broaden your target market. If you would like to learn more you can order our video “Introduction to the Professional Bookkeeper Program” today. For less than $10 (or free when you watch it online) you can learn everything you need know about this amazing course.
This week its coming down to crunch time. There is only two more months until the Tax Season ‘07 officially kicks off. Are you ready? I’m sure all of us have one or two things they still need to do, but for us who are wondering do we have the training that will allow us to get through the season with flying colors.. it’s getting down to the wire.
Once you master Quickbooks, you can offer help services to other Quickbooks users, and that’s not just limited to your current client base; you can attract new clients by offering Quickbooks set-up and consultation services for $65-$95 per hour. You’ll find companies who want to do their accounting tasks themselves, but need help in configuring Quickbooks to meet their needs. And once you’ve helped a company set up its initial QuickBooks system, who do you think they’ll turn to for help? You, of course! After all, you’ll have the training and expertise they’ll need whenever they run into a problem. Because even if businesses are doing the books themselves, they will need help in certain areas or have problems that only you can solve. Taxes and depreciation come to mind immediately, along with installation support, accruals, job costing, estate planning, and a myriad of additional services that only you can offer. And once your Quickbooks clients recognize the value and competence of your expertise, they’ll come to you for their tax needs.
Universal Accounting is a company that is making a difference in the lives of their students! For those who are pursuing or looking into the possibilities of pursuing a career path into the Accounting, Bookkeeping and Tax Preparation services, you need to get to know more about what all Universal offers in their comprehensive training programs.
Everyone can relate. We’ve all been the cranky customer: unsatisfied with service and wanting to talk to that one person who could respond to our problem. Maybe we’ve been belligerent, pounding on the counter and demanding a resolution. Or perhaps we’ve been calm yet resolute in getting a desired response. Whatever type of dissatisfied customer you may have been, one thing is certain, you wanted a timely and positive outcome.