Tag

tax office

Lifestyle, Taxes and Investing

Never Miss a Charitable Deduction Again





The Wealthy Accountant is turning into a vibrant community. Readers share their stories helping me do my job of teaching you, kind readers, how to live a joyful life without money problems. Readers also do things your favorite accountant cannot. For example, you would never ask me anything about IT. On my best days I am dangerous when given the access codes to computer files in my office. Karen, my office manager, has a standing order with the IT firm managing all our information to never give me a pass code or access to any secure files. It’s better that way.

When it comes to taxes, the story is different. I immerse myself in taxes the way a college guy plays video games. Most tax questions are front brain answers to me and minor research for most of the rest. (Every now and again someone throws me a curve requiring serious research, but we will not talk about those times to protect the ego of the innocent accountant in the room.) Then a reader sends me a link for a website that blows my mind. John Haldi did just that.Continue reading

Related posts
How to Become Wealthy in 2017
April 29, 2017
Thinking Like an Accountant
April 28, 2017
Why Saving Half Your Gross Income is Better and Easier Than Saving Half Your Net Income
April 26, 2017
Early Retirement, Small Business

Starting a Successful Seasonal Tax Preparation Business

Readers of this blog are always looking for a side hustle. Seasonal tax preparation is a perfect fit for many early retirees. A small tax preparation business allows for an earlier retirement as the side income can easily be enough to live on for even a modestly frugal person. Another large reader demographic involves the accounting industry. There are plenty of blogs talking about tax issues, but few discuss the realities of starting, promoting and maintaining a tax practice.

I touch on the subject of practice building periodically, but my email folder is filled with requests for a more detailed post. A recent email from someone called Speed (I love it!) asked a series of questions that encompasses the bulk of practice management requests.  Much of what I discuss can be applied to most other business ideas with only slight modifications.

Rather than give a play-by-play on starting and managing a tax practice, I will take each of Speed’s questions and answer them. The reason for avoiding the play-by-play is because there are many ways of starting a successful business. I don’t want to give the illusion you are locked into one pattern to win. Life is rarely that neat.
Continue reading

Related posts
Thinking Like an Accountant
April 28, 2017
Why Saving Half Your Gross Income is Better and Easier Than Saving Half Your Net Income
April 26, 2017
Secret Messages
April 17, 2017
Taxes and Investing

Finding a Good Accountant

The topic of finding a qualified tax professional is common in my mailbox. There is no pat answer for each request so I generally ignore them. Another common request is for a referral if I am too busy. It is true I only accept a small fraction of the requests for service, but the good news is I have more staff this tax season and have been accepting more new clients than last year. The bad news is that I don’t have someone to refer you to in your area.

Yesterday I received an email that touched me. Long emails usually die before I read more than three sentences due to time constraints. This email was different. The sender asked to remain anonymous and I will honor that request. He asked: How do I go about finding a good local accountant? He wants someone local he could shake hands and sit down with to discuss his tax and financial matters. I get it. He continued: I am hoping for an idiot-proof, step-by-step guide. I don’t know where to start searching, never mind narrowing the choices.

Finding qualified professionals is a difficult task. I wish it were as easy as an idiot-proof guide, but there is no such thing. My goal today is to share ways to increase the odds you have a good tax professional on your side.

Good tax professionals are a busy group, especially this time of year. The industry has consolidated over the last few decades and many top notch accountants have retired. Making matters worse is fewer people entering the field. CPAs frequently seek employment in government and large corporations or large accounting firms. The small and mid-sized accounting practice is a dying breed. These are the same firms serving the average American family’s tax preparation and planning needs. Finding an awesome tax professional to work with you is getting harder by the day. I have a few ideas to help you land a good one, but you might not like what you here.

Continue reading

Related posts
How to Become Wealthy in 2017
April 29, 2017
Why Saving Half Your Gross Income is Better and Easier Than Saving Half Your Net Income
April 26, 2017
Sleep Yourself Rich
April 24, 2017
Lifestyle, Small Business, Taxes and Investing

Organize Your Life to Maximize Net Worth and Minimize Taxes

JD Roth

I had the awesome opportunity of meeting JD Roth! While not fast buddies, I look forward to meeting JD in the future. He is even better in real life than I imagined.

The following post is based on a presentation I gave at Camp Mustache SE in Gainesville, Florida on January 15, 2017.

There are several ways to convince someone to speak at your event. Stephen Baughier used the most sure-fire method ever. Stephen noticed I wrote a blog post back in August listing some people I would like to meet someday. He checked two people on the list and found JD Roth open to attending. He then called me and said, “Hey, Keith. I saw on your blog you wanted to meet JD Roth. Well, he is speaking at Camp Mustache SE in January. We would love to have you speak as well and you can meet a man you admire.” How could I say no?

Picking a topic of discussion is something I allow the event organizer to decide. If they have no preference I choose something currently exciting to me. In this instance Stephen thought something about organizing your stuff in preparation for meeting your accountant/tax guy would be a good choice.

I grimaced. My organizational skills are not legend. However, I do keep a tight fist on in financial organization.

Bookkeeping is not a topic which lends to filling an hour presentation. My first thought was to stand in front of the group and yell, “Shut up, and sit down!” while I stabbed my finger at them. “Enter your paperwork once a week and stop bitching about it.” Then I would grab a beer from the fridge and sit down. My first inclination had a slight flaw I thought might turn off the crowd and upset Stephen so I moved to plan B.Continue reading

Related posts
How to Become Wealthy in 2017
April 29, 2017
Why Saving Half Your Gross Income is Better and Easier Than Saving Half Your Net Income
April 26, 2017
Crime and Punishment
April 14, 2017
Lifestyle, Small Business, Taxes and Investing

Treat Taxes Like a Game

staunton_chess_setLife in the accounting business can be difficult at times. Clients are as close to friends as you can get without actually being friends. You know all the details of their private lives. I know a divorce is imminent many times before the spouse does. I get details on illnesses in the family. I have to. Part of the tax preparation process is to know your client. When you ask about medical expenses you get the details too. In Wisconsin we have a deduction for certain private school tuition. When I ask about the kids I get the low-down on little Billy. And I don’t mind one bit. I care about my clients so I listen and interact. The line between client and friend is thin indeed.

That is why it bothers me when I can’t communicate a message to a client. Try as I may, some clients could care less about their taxes. They are willing to overpay their taxes to get out of all the reporting. They don’t understand the amount of money left on the table.

A few weeks ago I emailed a client reminding them to verify their retirement contributions and to provide a log for business miles and business overnight stays. To be honest, I didn’t expect a response. They are awesome clients and I love’em to death, but they just don’t engage at the level I would like and it bothers me because it is costing them dearly.


Continue reading

Related posts
How to Become Wealthy in 2017
April 29, 2017
Why Saving Half Your Gross Income is Better and Easier Than Saving Half Your Net Income
April 26, 2017
Crime and Punishment
April 14, 2017
Small Business

Expand Your Business and Increase Margins with Outsourcing




outsourcingStarting a business is an act of love and courage. Enjoying a task soon becomes a business. You might start working out of the home or buy a small store front. The previous hobby now commands more of your precious time. A business is about more than making money. Small business owners love the work they do and get paid to do it. Awesome! Then reality sets in.

When I was a sophomore in high school I fell in love with the stock market crash of 1929. The teacher said economists don’t know what really caused the crash. The Smoot-Hawley Tariff was probably the trigger but many other events also played a role. I could not let it go. Every book in the school and public library in my small town was in my paw, devoured for any tidbit of information on why things went so wrong in 1929. I never found a definitive answer, but I did learn a lot about economics.

And the stock market. From that point on I wanted to be a stockbroker. When I was in college I took a business class, accounting, and macro and micro economics. Though I never earned a degree I learned a lot that has helped me in my career. It gave me a start on where and what to study to get good at finance.Continue reading

Related posts
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017
Never Miss a Charitable Deduction Again
March 31, 2017
Small Business, Taxes and Investing

Workflow in a Tax Office

img_20161027_090824

Workflow system.

The more traffic grows on The Wealthy Account the more questions I get from accountants wanting to know how to run their office more efficiently. The tips below can be tweaked to work in many business settings and can be applied to personal management of time with family and friends while allowing ample “me” time for reading, thinking, and relaxing.

The workflow process in my office evolved over time as the tax industry changed and my practice transformed from a tax office to an accounting/payroll/bookkeeping office to its current incarnation as a quasi-communications company focusing on tax issues. So you understand my thought process I will walk through how I handled workflow in the past and why I changed procedures when I did. By seeing each stage of my workflow history you can pull the pieces that fit your situation best and modify them for your needs.

In the Beginning. . .

Organization in a tax office is not optional. From day one workflow had to be recorded and tracked. In business and even in our personal lives it is important to write things down. We start each client with a line item on a legal sized piece of paper. Since there are so many steps we take with our clients we break down each task into its components. Accountants track their own work and the computer monitors progress. My front desk is used as a redundant system, preventing mistakes. An empty checkbox on the legal paper requires investigation.

Before workflow even enters the office, client flow must be managed. In your personal life you can’t visit 38 different friends in different locations at the same time. The same applies in business; you see one client at a time. The early years of my business grew fast. People would frequently drop in without an appointment. Then one year in early February there was a line out of my building and half way down the parking lot. Something had to be done.


Continue reading

Related posts
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017
Never Miss a Charitable Deduction Again
March 31, 2017
Lifestyle, Small Business, Taxes and Investing

Working with the Wealthy Accountant




20160323_165144One of the occupational hazards of having a very public blog is demands from readers. I love hearing from all of you. Your ideas spark me into action, looking for new ways to manage and reduce tax bills. The downside is all the time required handling requests for personal help. Normally a simple answer would suffice, but when people have a tax question it takes time to flesh out an accurate answer. There are just too many emails to answer them all. It bothers me immensely. So I will initiate a new procedure to help maximize the number of people I can serve adequately.

Anyone is welcome to contact me. Understand if I don’t respond, it is due to an overload of requests. Readers contacting me for help either want tax preparation services or consulting; consulting is the largest request. I block four hours per work day for consulting with clients. This includes research time and review of client documents.

Returning phone calls is a huge sinkhole of time; I only get through about 20% of the time. I’ve resorted to sending return emails requesting the reader to contact my office and schedule an appointment along with my consulting fees. I started that process a few weeks ago and got only a small response back.

With that in mind I want to outline how I will handle this extra workflow. Rather than readers sending me long emails and asking for my fee, how about I give you my consulting fee here and let you decide if it is worth it before you contact me.

My consulting fee is simple: $225 per hour with a one hour minimum.

If you are good with that, feel free to contact me. You can also contact me to prepare your tax return or if you want me to consider you for a Reader Case Study, which I will start doing on this blog as we approach the 2017 tax season.

Tax returns will still need a quote and I have added staff and opened several slots for new tax returns. Depending on the size of the tax returns coming in, my guess is we will accept around 100 new clients in 2017. This is a small number compared to the volume of requests, but a large investment of time as most readers contacting me have a multitude of issues.

The consulting fee is low so I anticipate a reasonable number of requests. I am also opening up slowly to American ex-pats on a limited basis. We will help catch up back tax returns, too.

My goal is to provide better service in a timely manner to more people. The massive transformation at Tax Prep & Accounting Services, Inc. has stretched my management skills. I needed the kick in the pants. It was time to up my game.

If you emailed me in the past without a response, feel free to do so again. I look forward to working with you.

Related posts
Sleep Yourself Rich
April 24, 2017
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017