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.

QuickBooks Made Profitable

The PB and PTP Certifications will not only boost your confidence, expand your services and increase your clientele, but the programs will also teach you the skills to market these services. And when you purchase this program you should also consider another profit-building program, The Professional Bookkeeper’s Guide to QuickBooks.

The majority of small business owners (and probably the majority of your own clients) uses QuickBooks software to manage their accounting. UAC has created a program designed to teach you how to use QuickBooks to generate more clients. We’ll teach you our proven system of how you can use QuickBooks to attract larger numbers of potential clients while representing yourself as the expert. Learn how to leverage your time, meet potential clients and offer them services that will help them reduce taxes, increase profits and put money in the bank in such a way that you will be asked the question that we all long to hear, “How much do you charge for your services?”

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?

Our Business-Warming Gift

If you order the Professional Bookkeeper Program now, we’ll throw in QuickBooks Made Profitable as a business-warming gift! 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. When you order the PB Program, you’ll learn how to do just that! With these two programs you will be able to increase your service offerings and learn how to use your QuickBooks skills to attract even more clients.

Not only is now the perfect time for you to grow your business, but this is the perfect opportunity to help you do that.

• Click here to pay in full.
• Click here to finance.

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:

• 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:

1. Self Assess
2. Self Affirm
3. 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 to pay in full.

Click here to finance these two programs.

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.

Get Primed for Tax Season:

Qualifying Your Clients for Business Deductions

When Lance Armstrong won at the Tour de France he would reward himself with a week off from anything to do with cycling, just take a totally break from it. But once that week was up he would start preparing for the next year going through an extensive training regiment that would build his strength, stamina, and power for the next year.

Well, for us in the tax season our “week” is up and it’s time to start your regiment with getting your tax “strength, stamina and power” that you need for being a success with your tax practice. For any active activity, even in the business world, you are best served if you get yourself “in shape” before you are ready to run the “100 meter dash” in business. Here are a few tax calisthenics that you can start with.

Qualifying for Business Deductions
For the small business sector you may be looking to service you just may be the first tax professional they have dealt with. So to get them started on the right foot here’s the criteria to qualify an expense for a business deduction.

Your expenses must be:

• Ordinary and necessary — defined by the courts and the IRS as “reasonable and customary.”

• Paid or incurred during the taxable year.

• Connected with the conduct of a trade or business.

What is “reasonable and customary” hangs on what’s specific to your business and the local business “traditions”. So, deducting thousands for kiwi picking expenses when you live in Iowa probably won’t work. The expenses your client business incurs don’t have to necessarily be reasonable and customary to the business owner, but simply to your specific trade or industry. Even hobbies that can be related and proven that they have a profit motive can qualify as a deduction. Can anyone say the expense account for your golf game going to expand now that you can prove you do business on the green?
Focus on your profit-making motive. Remember that it’s not what your client pays in taxes that counts, but what your client keeps.

Retirement for Business 401K
In 2006, your client and their employees can contribute up to $15,000 to a 401(k) plan– $1,000 more than you could in 2005 and $2,000 more than in 2004. If they are 50 or older at the year’s end, an extra $4,000 in 2006. 401(k) accounts are funded generally by payroll deductions at the workplace.

Here are the new limits for other retirement plans:

SIMPLE Plans: The limit for SIMPLE retirement accounts, offered by smaller employers, is $10,000 since 2005. For 2006 the limit is adjusted for inflation. If the client is 50 or older by year’s end 2006, contribution to the Plan is set at an extra $2,500 limit.

Self-Employed Plans: For those classified as self-employed, the contribution limit to Keogh plans jumped to $42,000 in 2005, up $1,000 from 2004. The maximum contribution that self-employed workers can make to a Simplified Employee Pension (SEP) plan remains unchanged at the lesser of 25% of compensation or $42,000. (The 25% limit becomes 20% if you’re the owner of the business.)

Deductible IRA Limits Went Up in 2005
Starting in 2005, an individual can contribute up to $4,000 a year to an Individual Retirement Account. (If 50 or older, you can contribute an extra $500.) Whether you can deduct that contribution to the IRA depends on the individual’s income. Income levels are higher for workers seeking to make tax-deductible contributions to Individual Retirement Accounts.

If the company offers a retirement plan, a full deduction can be done if:

• The individual is single and their modified adjusted gross income is $50,000 a year or less.
• The individual is married and filing jointly and the adjusted gross income is $70,000 or less.

In 2005, the deduction is phased out between $50,000 and $60,000 for singles and between $70,000 and $80,000 for joint filers. Above those top levels, you cannot claim a deduction.

Fortunately, in 2006 the top limit for married couples filing jointly rises to $85,000.

Start getting yourself primed for the season that is just around the corner. When you prepare the right things, the right things tend to happen. The success of your business rests with you. Get all the “exercise” and training you and your employees need. Click here to get more acquainted with Universal’s Tax Certification Program.

It’s coming up fast and seems to be moving faster. What is it that I’m talking about? Is it Christmas? or New Years? No, I’m talking about the 2006-2007 tax season. As your client’s accountant and bookkeeper you are in the unique position to be able to assist those you are doing business with. Doing their taxes? Not so much (if you are considering adding to your service menu tax preparation click here) but in the very least you can steer them in the right direction.

The following are three ways you can be of service to your clients this tax season:

1. Tax Forms - Business and Employee
Depending on the type of business your client is running you can send him/her in the direction he/she needs to go to get all their tax forms for filing their taxes. You can also, because you are intimately familiar with the company’s financials, be able to guide (for an additional fee of course) to the IRS required tax forms This IRS Link takes you right into the IRS Web site that hosts all the general tax forms for small businesses. It is also a fantastic resource for you!

2. Tax Breaks / Deductions
As the Profit & Growth Expert you are trying to become for your clients, and with your knowledge of what they have done during their fiscal year, you can steer them in the right direction with their company’s tax preparer. For instance, you could suggest the following depending on your client company: the tracking of the company’s petty cash expenses; the employment of their children in the business; if they’re a homebased business give them the financial information that they can use to gain the deductions the IRS allows in rent, or mortgage interest, utilities etc.; The ever important deductions possible for travel and meetings expenses as well. All the receipts you have them save, so that you can track the expenses of the company can also be a source for deductions, keep that in mind.

3. Bookkeeping “P’s and Q’s”
You also need to take into consideration, again depending on your client company, on what they could be expected to bring to their own tax preparer. Things like Payroll deductions with it’s various tangents of federal state and local income taxes. Deductions taken out of employees paychecks for Social Security and Medicare, as well as possible garnishments. Let’s not forget the federal unemployemnt insurance as well as the state’s unemployement programs. Things get even more complex if your client business operates in more than one state or if some of your employees live in one state and work in another. Help them better prepare to go see the “tax man”.

Hopefully this article jars some ideas for you to be able to provide to your clients to get their business taxes taken care of. When you are looking after their best interests, they will be more inclined to take care of you both in work and in compensation. All of these examples are just a place to start when you are preparing your client company for the filing of their business taxes, please refer to the Universal training materials and for those who still have it available to them, Universal’s very own Support Coach. If you are considering adding to the services you want to provide Tax Preparation click here to get more information about what’s all involved with Universal’s Professional Tax Preparation Certification.

You can resolve most client issues over the phone or via email, and should when possible, but every now and then you need to meet face-to-face in order to talk about key issues and ensure that both you and your client are on the same page. And when you do meet, you want to make the most of your time with a client. Here are eight tips on planning an effective meeting.

1. Don’t schedule meetings unless they’re absolutely necessary.

Remember that your client hired you so they don’t have to worry about tax issues. If you over-schedule meetings with a client they will quickly tire of you and wonder why they don’t manage their taxes themselves. You shouldn’t schedule meetings to provide informational updates, generate client-loyalty and enthusiasm, or chastise clients for not getting you the information you need. If there are problems or issues that can’t be resolved through other means, you schedule a meeting in order to generate a two-way conversation.

2. Write up your agenda and sent it to attendees before the meeting.

Let your client know the topics you plan to cover before you meet. And remember number eight when creating your agenda; the meeting should be brief which means your agenda shouldn’t run long on items.

3. Determine the appropriate location for your meeting.

Perhaps you feel it important to meet in either your office or your client’s office in order to remain focused and maintain that professional environment. But consider a lunch appointment or a meeting at a café or coffee shop. Sometimes the ambiance of the location can enhance the tone of your meeting.

4. Stay on task.

While it’s nice to generate positive and friendly conversation, remember that it’s also important to stay on task so you can accomplish your meeting objectives.

5. Take notes.

We don’t advice that you bury your head in a notebook throughout the meeting, but you should take notes occasionally in order to remember key discussion points. Also, don’t be afraid to draw diagrams or illustrations if they help your client better understand you.

6. Invite discussion.

There’s no reason to schedule a meeting if you do all the talking. You should encourage open discussion when appropriate and get client feedback when possible. You may be surprised at the valuable suggestions your clients offer. Either way, when you encourage discussion you let your client know that you value their perspective.

7. Make it brief.

Turning a one-hour meeting into a two-hour meeting, even if you feel it necessary, is literally risky business. Remember that your client’s time is valuable. Don’t let your meeting run long, and don’t become long-winded.

8. End with an action plan.

You should summarize what you’ve covered in the meeting and end with a plan of action. Tell your client what you intend to do with the information gleaned from this meeting and when the client can expect to see the results.

When scheduling meetings with clients remember that everything you do, including the manner in which you run meetings, generates client loyalty and trust. Treat their time with utmost respect and ensure that all your communications evidence your desire to make their lives more profitable.