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Solutions to an Accounting Industry in Crisis

Hire and retain the best accountants and tax professionals. Find the best tax consultant to save on your taxes. #tax #accountant #employment #labor #jobs #hiringIn the middle part of the last decade I found myself standing in line at the grocery store waiting to checkout. Before me were two women in their late 50s discussing work.

One woman said to her friend, “Last year I worked in a tax office and it was the hardest job I ever had!”

I had to turn away as I suppressed a smile.

Later, as I reflected on that conversation, the smile faded. Is working in a tax office so hard? Did I really choose the of the most difficult of professions as my career? 

It would explain a lot. Hiring qualified tax professionals has become nearly impossible over the last decade. Robert Half recently reported the unemployment rate for accountants stood at 1.8% in Q1 of 2019. The news isn’t any better if you plan on hiring a tax professional.

 

Crisis in Review

The crisis in the accounting industry is self-feeding. The worse it gets the more workload is shoved onto the desks of the remaining souls. Stress is taking a toll.

Several support groups for tax professionals exist on social media platforms. Tax season reveals a serious level of stress for practicing tax professionals. Complaints of long hours and clients unwilling to pay higher fees to compensate for the added complexities of the new tax laws has more professionals looking to leave the industry.

And it isn’t the tax pros facing the worst pinch. The ultimate loser is the client. With fewer experienced tax professionals accepting clients it has put taxpayers at risk. The IRS knows taxpayers have limited choices when defending themselves in an audit which means the IRS’ advantage is larger than ever.

Tax preparers are becoming more selective, too. Clients with documentation a mess are being turned away. Even clients with their documents in order are finding it hard to secure an experienced tax professional who understands the Tax Code and is willing to take on additional work.

 

Growing Demand

Experienced tax professionals are like rock stars in many environments. An accountant in my office recently joined her mother for a Bingo event. She made the mistake of telling the lady next to her she was a tax professional. From that point on the questions came rapid fire with several people around her asking for her card and if she was accepting new clients. The relaxing weekend with mom turned into another afternoon of stress.

The best job in town is helping people reach their goals and dreams. Accountants do that every day! Join the team. Make a difference. #accountant #taxpreparer #professional #accounting #jobWhen I attend conferences (or on vacation or in the park or . . . )I get the same reaction. It becomes nearly impossible to enjoy time off if the people around me know what I do. They all have a quick question. They don’t understand an afternoon of quick questions is not time off to recharge.

People don’t care; they want answers their accountant can’t or refuses to answer. Or worse, they do their own tax return and want top quality answers without paying for it (until the IRS letter arrives).

It has gotten so bad that when I’m on vacation with Mrs. Accountant I tell people I’m a farmer (because I grew up on a farm and currently live on a hobby farm) so my vacation isn’t ruined. People are intensely interested in powerful tax strategies, but for some reason don’t want to pay the tax professional $500 for saving them $10,000. And have no problem consuming an accountant’s entire vacation. 

And we wonder why the profession is shrinking.

To put it in further perspective: My office turned away over 20 new clients on April 15th this year. They just walked in and wanted us to drop everything so their return got filed on time. We don’t advertise; they just show up. Experienced tax professionals — even inexperienced tax professionals — have no problem filling their book. All they have to do is let people know what they do and it’s all over.

 

Greasing the Squeak

There are three groups who are willing to pay tax and accounting professionals well: government, big business and the wealthy. I see this even in my small tax office. Wealthy people and large businesses (I have even consulted large hedge funds) approach me in a different manner than typical clients. While they are acutely aware of the pressure tax Accountants make the world go round, are a part of all business and personal wealth creation. Be a part of the solution. Be an accountant. #accountant #accounting #retirement #earlyretirement #financial independence #FIprofessionals face, they make it clear they will pay for my time and information. In many of these cases I’m paid a fee versus and hourly rate. The incentive is to get me to stop watching the clock and focus on the Holy Grail: lower taxes coupled with higher returns and increased net worth.

While government watches my work, they don’t necessarily engage me. I’ve made it clear I don’t work for government which is probably why I haven’t been invited to do so. Businesses and individuals need my services more even if they pay less.

It is easy to see who is on the path to financial freedom and those who will doubtfully ever make it. The questions and the approach scream failure or success almost from the first words. Wealthy people want to learn while those allergic to wealth want confirmation they are right. 

As self-serving as it sounds (and is), you need a tax professional. Finding one is the chore. I understand. When it comes to legal issues the wealthy (and smart) hire an attorney; when sick they see the doctor. When it comes to taxes — the largest expense you will have in life — too many hire a commissioned salesperson for guidance. That is like hiring the pharmaceutical sales rep if you are diagnosed with cancer! Or they go it alone when they are dealing with the sum total of all their income and wealth. Boggles the mind.

 

Solutions

It is easy to cry about the crisis in the accounting and tax industry. I’m a solutions guy so I prefer to look for answers instead. The outline above expressing the stress professionals in the industry face is only to set the stage so you understand what is going on behind the curtain. There are actionable solutions professionals need to know and the public needs to understand so they can gain the maximum advantage to the benefit of all.

Several goals are necessary to improve the performance of the industry: reduce stress on the accountant, adequate compensation to encourage more to enter and stay the profession and more responsiveness to the client. 

While salaries might be the easy culprit, money isn’t the overriding problem. Money would salve many wounds within the industry, especially at the entry level, and would encourage more to pursue an accounting career, but it will not alleviate the stress from endless deadlines and demands from clients. Let’s look at a variety of solutions, starting with salaries and fees, then addressing stress followed by industry trends sure to improve performance and reduce stress.

Salaries

Money motivates. . . to a point. Offering tax professionals and accountants a larger salary is always nice. But if the stress is never-ending and job satisfaction is low more money will only make it easier for more to retire early and leave the rat race. 

While there is an acute shortage of qualified tax and accounting professionals, many in the industry tend to work up to and beyond what is typically considered retirement age. People attracted to the industry love the work and the challenges even when it is demanding. Helping people manage their business, taxes and life is a powerful draw. Working with clients as they reach for their goals is addicting.

Accounting: A profession that pays more than you think. Might be time for a career change. Be a mover, a doer, a shaker: be an accountant. The career for the best people. #accountant #accounting #money #clients #career #jobsLarger firms have the advantage to segregating pricing from the front line accountants. Fees are negotiated between the firm and client by the sales teams. The tax and accounting professionals doing the work only need to record their time spent working on the account and serving the client’s needs. I do oversimplify a bit. The important takeaway is that the larger the firm the more distant fees and their collection are from the accountant doing the work.

Small and mid-sized firms are another story. Frequently the accountant working with the client in smaller firms is instrumental in the fee determining process. The client always wants a lower fee. What clients need to understand is a lower fee means a pay cut to the accountant in many cases, especially if she is also a partner or the owner of the firm. Nothing demotivates faster than a pay cut while the workload increases.

Fees and salaries go hand-in-hand. Clients need to be educated that lower fees mean fewer qualified candidates will seek a career in accounting and fewer qualified professionals available to work on their account in a timely manner.

The tax end of the profession feels the pinch hardest. Finding people willing to work a seasonal job at a high level of knowledge and experience for a seasonal salary has always been difficult.

Tax offices can best meet demand with adequate fees to cover the salaries of their professional team with a reasonable profit for the partners/owners. Tax work comes in various sizes. Business returns are different from individual return. For a tax office to be most efficient they need to focus on the type of client they wish to serve. It is difficult mixing very simple returns with complex return without dedicated staff to handle each type of return separately. Very small office are best served when focusing on a niche. Highly experienced accountants working on simple returns is a poor use of resources and an under qualified preparer working on a complex return opens the firm to litigation risk.

The right compensation package allows you to attract and retain high quality employees. Robert Half provides an excellent salary guide for the industry and there are several resources for compensation of tax professionals. Where you are located also determines how far you deviate from the averages. One thing is clear: Tax and accounting professionals can earn very substantial salaries with excellent work-life balance when handled properly. You want to be one of these firms or work for one.

Accounting and tax firms can maximize their efficiency by dealing with the next area of concern: stress. Reduced stress should lead to higher salaries and profits while providing optimal work-life balance and provided the client with the best value.

Stress

Stress is a constant in many accounting offices with deadlines constantly bearing down. Tax offices are even worse during the filing season. There are several way to reduce stress and improve your team’s well-being. 

It starts with the client. Some clients increase the stress in the accounting and tax office. Paperwork hastily tossed in a box and missing paperwork tops the list. Everyone in the industry can tell stories about clients from hell: bad records, difficult to work with, constant interruptions. These clients increase stress massively and can drain the lifeblood out of a firm, harming all clients. The faster you disengage these clients the better for your firm and remaining clients. If you are that client you want to reevaluate, as it will become increasingly more difficult to secure a place at a quality firm.

Once you have a clean book of clients that value your work you can now excel at serving your clients. 

Certain activities are more valuable to the client than others. Data entry is a low value task that also tends to add to stress when conducted for too long. The high value tasks are the most valuable to the client. High value tasks include planning and consulting.

Clients enjoy constructive conversations (planning and consulting) with their accountant because they feel they are getting value. And they are! No tax professional or accountant has ever created any real value plugging numbers. Business and personal planning — consulting — is a high profit activity for the firm that clients are happy to pay since planning with an experienced professional can yield a return into the three and four digit range. Smart clients are happy to spend $1,000 to save $10,000 or more in taxes or increase their net worth by orders of magnitude.

Consulting is a productive activity that also reduces stress. Professionals want to do more highly productive activities and avoid low value activities as often as possible. Productive is fun and makes clients happy; unproductive work is drudgery.

The issues boil down to managing the rote work activities and workflow

Automation

Stress-laden work (data entry and other mindless tasks) can be addressed with automation, outsourcing or a combination of both. 

I recently attended the XCM Users Conference in Nashville. I found XCM while researching outsourcing options and tried their services. 

While I viewed XCM as an outsourcing possibility, I missed what XCM was really all about: workflow. 

Workflow is part of the automation process. Efficient workflow reduces stress and errors. GruntWorx and similar services complete many of the basic entries on a tax return. As the technology improves less and less time will be required by the accountant for data entry. This frees time to provide value-added services to the client like deeper tax return discussions, financial statement review and planning/consulting services to increase client’s net worth and reduce taxes.

Drake Software has Secure File Pro (it integrates with their software) as a portal to transfer documents between client and accountant. (Accounts complain endlessly behind the scenes over how much they hate it when clients take a picture of a document and text it because these are so hard to read and save. Document managers solve most of this problem.) SafeSend is another option that works with many of the most popular commercial grade tax software. 

Automation reduces stress by reducing the amount of time buried in paperwork only punching numbers. Even if there is no time savings it is worth the added expense just for the reduced stress. 

As automation technology evolves into robotic automation, computers will be able to enter more and more of the data on a tax return. The tax professional’s job in five years will be to review returns and consult with the client; the computer will handle the original preparation of the return. This will free more people in the field for more enjoyable and productive tasks, partially resolving the labor shortage within the industry.

Outsourcing

Virtually all large accounting firms outsource a portion of their workload. In the last two tax season I worked on applying outsourcing a portion of my office’s work with less than exciting results

I’m not willing to give up on the idea yet as outsourcing coupled with automation will consume a larger and larger part of the industry in the near future. Even people self preparing will find in the small print some or all of their tax return outsourced (the online software is probably programmed overseas). Fighting the inevitable will leave you stressed with lower profits while your competitors have lower prices, higher profits, fewer errors, spend more time consulting with their clients and have a better work-life balance.

Accountants do it with balance. Joking aside, accountants have the best job in town helping people and businesses build a better community. Accountants are vital to the health and growth of families, businesses and the community. Make a difference. Become an accountant. #career #job #accounting #salary #wage #accountant #analyst #taxOutsourcing can be integrated with automation and probably should. 

Outsourcing also comes in two flavors: domestic and international.

Domestic outsourcing most clients have no problem with. Tax returns are either e-filed or mailed. In either case the data is handed off to another human being outside the firm for delivery to the IRS. This is all domestic and most feel comfortable with the process. 

Real domestic outsourcing, however, involves your tax firm getting help from another tax office within the U.S. It might be a branch of the same firm or an outside firm hired to do the work. Domestic outsourcing still has issues with staffing and costs tend to be prohibitive. 

International outsourcing is a whole different animal. Before an individual return can be outsourced in this manner requires approval by the taxpayer. Stiff penalties are a strong deterrent for a tax office to play it fast and lose. 

Wealthy people and corporations generally are more comfortable with international outsourcing because they frequently have operations and/or investments in international markets. When proper security precautions are in place (using a reputable firm only) there is no reason to fear international outsourcing. I will test this process deeper in the upcoming tax season with clients who give authorization and report back to you. 

When I attended the XCM conference I met many smaller firms that are using international outsourcing and making it work. (My first two years were false starts that were also expensive. If you can avoid the problems, especially the expensive ones, you may wish to consider learning from my experience.) 

Individual clients are the most apprehensive. My goal is to get 100 clients next tax season to authorize outsourcing. I never outsource any client work unless I disclose to the client first and get their approval. We’ll see how it goes.

Industry Trends

With the tax/accounting industry set to grow by 10% over the next decade, more professionals will be needed to complete all the additional work. As fewer people pursue accounting and tax as a profession automation and outsourcing will play a key role in completing work and managing workflow. Without these efficiencies more highly talented people will leave the field for less stressful work and from burnout. 

The demand for solid information has never been higher. The Tax Code is complex and getting more so every year. Without automation and outsourcing there will be no time for your accountant to spend quality time with you or they will need to raise fees massively to seduce more people to work for them. The trends are a gift that reduce stress and increase accountant productivity. This is really good for the client and the accountant alike.

 

If you demand your tax and accounting work be done the old-fashioned way, don’t call me; we are full-up. We use computers to prepare returns, e-filing to file tax returns, use automation where ever we can and would love to find an outsourcing solution so we can handle more of the clients we currently turn away. And less stress would be nice before burnout sets in.

And if you demand I punch all the numbers by hand or you do your own return, don’t ask me any tax questions if you see me at a conference or at the park. I’m just a farmer. I have no idea what you’re talking about.

 

 

 

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Keith Taxguy

15 Comments

  1. Jim on May 30, 2019 at 8:52 pm

    Same issue in Australia. Tax compliance staff are getting older and older (so are farmers!).

    The industry is getting more complex and more pressure is being applied to tax agents. Yet it’s bit easy to tell a client costs are rising again.

  2. Triple Fi Guy on May 30, 2019 at 11:08 pm

    Great post Keith! I hear it’s kind of the same issue with the financial advisor profession. After starting my coaching business, I realize some experience in the field would help. I have a door open to work to support and advisor part time. Trying to schedule meetings with local CPA’s to see what I’d need to do to go that route. I do have my degree buts it’s not financial related.

    The main draw to the financial industry would be like you said in your post, planning and consulting.

    So here I am willing to give this industry a shot. Any advice?

    • Keith Taxguy on May 31, 2019 at 3:00 am

      Triple Fi, some tax/accounting professionals are looking for more clients. I have a few posts that outline how to grow a practice fast.

      The real help firms need is workflow management and hiring and retaining qualified staff. Check out the Robert Half link in the post. They offer a salary guide for free and it is enlightening. First, accountants can make some serious coin. And, second, there is an acute labor shortage in the industry. What I didn’t say in my post was that even during the Great Recession 10 years ago accountants never experienced an unemployment rate over 3%. If you’re an accountant and want a job there is a job for you.

      If you plan on consulting to accounting/tax firms, you will need to address the staffing issues. Integrating automation and outsourcing with workflow is vital. I would review the work XCM is doing. They are proving powerful solutions for the larger firms and moving down the food chain. That is what firms will be looking and willing to pay for.

  3. Morgan on May 31, 2019 at 2:04 am

    LOL, I tell people at parties I’m an accountant. Because my real profession is a Medical Intuitive and the entire room expects me to work on them, that minute, for free. I want to socialize, not look at someone’s foot fungus. Or they expect me to fit them into my schedule in less than 8 weeks because now they know me socially. I don’t have people asking for my business card when I say that I’m an accountant. Now if I said I was a CPA they’d be hanging on my sleeve all evening, that would be intense.

    • Keith Taxguy on May 31, 2019 at 2:53 am

      Eight years ago Mrs. Accountant and I joined a group tour of Costa Rica. My parents invited me so we thought it would be fun. Before I could say I was a farmer my dad proudly announced my profession when someone asked what I do. For a week and a half I wasn’t given a break as people took turns grilling me with questions. It was the worst vacation ever.

      I’ve also had clients track me down while I was on vacation to ask a “quick question”. I shouldn’t complain about that, however, because I have doctors as clients who tell that happens all too often in their profession.

      It can be frustrating, but we learn to deal with it. My goal here was to provide solutions for my industry. Technology has many professions in flux. It will take time to adjust, but it will be fine.

  4. Adam on May 31, 2019 at 2:07 am

    The tax system far too complex and in the UK also is also in need of simplification.

    However think you are exaggerating to call it a crisis. A crisis is companies making losses, making cuts and laying people off. Low unemployment is a sign of a successful and dynamic economy. You should be counting your blessings.

    Btw love your blog , helpful to us aspirees to fire.

  5. Jamie V on May 31, 2019 at 7:15 am

    Keith, every spring, I consider helping out at a tax firm for the season. I could always use some extra money. I have hardly any experience (though I do work in finance – in mutual funds and stocks, though) so it always keeps me from going somewhere and saying, “hey, is there anything I can help with that doesn’t require extensive knowledge into the field?” Personally, I have simple taxes each year, I use TurboTax so it’s a real breeze..and taxes are a huge and scary beast to me. I have considered a seasonal part-time gig not only for that extra money, but to stare this monster in the face and learn more. I’m willing to learn (who knows, maybe I’d enjoy it and want to become an accountant?). However, without any real knowledge or experience, I don’t want to be a drag, so I just don’t pursue it.

    After reading your article (thank you!), would someone like me be a help or a hindrance? Would it be worth both my and the firm’s time and effort to bother with me? I haven’t taken classes, would that be a boon? I would appreciate your honest opinion.

    • Keith Taxguy on May 31, 2019 at 7:36 am

      Everyone starts at the beginning, Jamie. Data entry or support staff is a good way to learn. Some of my best tax pros started without any tax knowledge and grew to really good CPAs or enrolled agents. You might even start at a firm that handles lots of easy returns (a pure data entry job to get you acclimated to the tax process) and eventually move to a firm handling more complex issues. My Friday night card playing buddy did that this year and prepared 430 returns his first season (not at my firm) without any tax background.

      If you enjoy the work, go for it. The worst anyone can say in “no”.

      • Jamie V on May 31, 2019 at 8:41 am

        Thank you so much, Keith! That was not an answer I was expecting and it makes me really glad to hear (read) that there’s hope. I live in MKE so it seems that I’ve got quite a few places to put feelers out to since I’ve got not only the big city, but some suburbs as well. Thank again!

    • Karl on June 3, 2019 at 5:11 pm

      Jamie, you’d be a great asset at the right firm, even without experience. An eagerness to learn can absorb a whole lot of tax knowledge really quickly.

      I’d advise you to try to line something up a few months before tax season hits so the firm has time to plan for you in their workload. You want to interview them as much as they interview you. You want to know that the firm has good workflow management so you’ll be corrected/coached timely if you’re doing something wrong, not after you’ve made the same mistake on 20-50 more returns. You will likely have to “manage your manager” to help make sure this gets accomplished. Be patient and gracious with the missteps, as they’ll be learning this process right along with you.

      I’m a one-man shop, but if I was hiring seasonal help, I’d want two things along with the willingness to learn you mentioned: 1) a soft non-contractual intent (life happens) to come back multiple years (give me a return on my investment for spending busy season time training you), and 2) comfort that the person wouldn’t do a brain-dump and forget everything when he/she comes back next year (some re-training is fine, but don’t treat 4/15 like a college final).

      I’ll double-down on what Keith advised on the worst thing being a “no.” A firm telling you “no” is actually doing you a favor and saving you from a horrific tax season. They may be a great firm, but if they can’t/won’t make the bandwidth to bring you in well, it’s not a culture fit. So don’t chalk that up as a rejection and think that you didn’t pitch it well enough. You’re just shortening your list.

  6. Cindy on May 31, 2019 at 8:02 am

    As an organized person and client of a tax professional, I pride myself on having all the documents and numbers ready at tax time. My profession is configuration management (I track change to an item being manufactured – and talk about a conversation killer, oh boy!), that’s what I do for a living and I readily admit I don’t know much about taxes other than the rarely go down. I love my tax professional who is also very organized; she has a 7-page form each of her clients fill out along with a 1-page questionnaire pertaining to any life changes over the year. Both these forms are no doubt highly beneficial to her to expedite the process.

    It generally takes me about 8 full hours to gather all the information and package it with her time in mind (and, I try to organize my deductions/documents as the year passes, but more and more I need to visit several web sites to download the documents, ugh!). She makes the job seem effortless but I know there is a lot of experience and continuous learning going into my tax preparation, so I do all I know to do in effort to respect her profession. Until this post, I hadn’t thought about the gravity of the tax professional’s profession but now have a more sympathetic view of your job. You are a professional and as such you want to do the best possible job for your client. When they are of no help to you it can be frustrating. It’s much like the doctor who’s client won’t take their advice, yet keeps complaining the doctor isn’t helping them get well.

    I think we tax payers should communicate to our representatives, en masse, we want a simplified tax code. I don’t mind paying what my fair share is, but I don’t want it to be so convoluted that my tax professional quits on me, or that I’m at risk of a healthy fine for being obtuse to the complexities of the tax code. I used to read Schedule 17 every year to see what benefited my situation but as I matured and acquired more deductions I decided to allow a professional to help me. So, I will write to my representatives today stating we deserve a more simplified tax code. It’s time to stop their nickel and dime raid of every aspect of our lives.

    Thank you for opening my eyes.

  7. Elise on May 31, 2019 at 9:48 am

    “t starts with the client. Some clients increase the stress in the accounting and tax office. Paperwork hastily tossed in a box and missing paperwork tops the list.” I’m the client that isn’t sure what records I need to keep. Could you describe the ideal client? What records what he or she have? What kind(s) or organization would he or she use? Thanks!

    • Keith Taxguy on May 31, 2019 at 10:20 am

      Elise, most of my clients are the ideal kind. They fill out the organizer I send them, answer my questions and work with me to prepare an accurate tax return. They consider, but don’t always utilize, advice I give. This is to be expected since my job is to share information and the client decides if it’s right for them.

      Let me share a client from hell I fired this last year. Every year he throws “almost” everything in a box for me to sort and organize. He has three businesses and commingles all the paperwork. After two of my staff spend 2-3 days sorting his papers it is clear a lot of material is missing. When I call and ask for more details he tells me it’s in there and my fault if I lost it. His entire return is a reconstruction using the Cohan Rule to bring the return somewhere in line.

      My example client is an extreme case, but not too far from many people who try to work their way in my door.

      What is good for the accountant is also good for you. Good records save you money in fees and allows the accountant to focus on reducing your tax liability. There is a reason we ask the questions we do.

      I never have a problem with a client if we discover something is missing. It is common for me to prepare a return and upon review verify with the client an item on prior returns but not in this year’s paperwork is in fact truly no longer a part of the client’s situation.

      Tax documents like W-2s, various 1099s and K-1s I need to physically see. For a business or rental property I don’t need to see receipts (unless we do the bookkeeping); I just want the financial statements. I’m preparing, not auditing, the return. If in doubt, bring it in. If I don’t need it I’ll thumb through it and return it. It’s okay to have a thick stack. For example: You may have lots of medical bills or charitable contributions. Keep them in a stack and have a totaled list on top. Many times these deductions no longer help, but if I don’t see them I can’t determine that and the opportunity is lost. Some things, like medical bills, help on the state tax return, but not the on the federal. Don’t stuff it in an envelope (unless a total in printed on the outside of the envelope) and expect the accountant to dig through it. We are sleep deprived and that hurts our already aching head.

      Finally, ask your accountant how they would like to see information. What I want might be different from your accountant. It is also based on your facts and circumstances. Some clients I ask to bring in all supporting documents due to their situation; other I ask to just provide totals.

      The ideal client works with their accountant, as simple that. You are a team with the same goal (for you to pay the least amount in taxes legally). The fact that you asked the question, Elise, means you are one of the ideal clients. Thank you.

  8. Mr. Hobo Millionaire on May 31, 2019 at 11:08 am

    >>Wealthy people and corporations generally are more comfortable with international outsourcing because they frequently have operations and/or investments in international markets.

    Just one wealthy person’s opinion here, but I would NOT want my financial info outsourced internationally. Understand, I *do* have an appreciation for international outsourcing. I use it for small programming projects and even found a fantastic illustrator in Kazakhstan for my wife’s children’s books. But I would never want my financial sent overseas (unless personal names, addresses, and tax IDs were redacted some how — not likely). Technically all of that stuff *could be* redacted and replaced with a unique GUID, but that’s another discussion. There’s too many bad things that could happen from that data falling into the wrong hands (for example, the Chinese government/Huawei ban).

    And for sure, I value my tax CPA’s knowledge and advice. I’m happy to pay most any number to not have to worry about tax stuff (although I do review everything).

  9. Karl on May 31, 2019 at 4:31 pm

    Fantastic analysis! I can attest to the low industry unemployment rate, even during the financial crisis. I worked at Deloitte & Touche in California as a third year in 2008. None of us batted an eyelash during the financial crisis. We knew that our jobs were safe. In fact, 10 seniors & managers voluntarily resigned with higher-paying offers in private industry or at local firms from 2008 to 2009.

    I’m now on my own as a one-man tax practice. I can echo the woes about the problem clients. I ramp up fees or fire my difficult clients. My most difficult client pays me PITA charges that triple a good client’s return fees. Since she doesn’t fight me on fees, I’m much happier putting up with her.

    I’m now trying to push all my clients to upload forms to my secure file portal (SmartVault) in advance of meeting. Some do, many don’t. Over time, as my practice grows, my fees are going up for the clients who won’t work to jump in a more streamlined process for me.

    For the April 15th drop-offs (admittedly, I don’t get too many of those), I tell them they are going on extension and require a $250 retainer to look at their forms. That usually sends them elsewhere.

    I don’t usually have trouble mentioning in social settings that I’m an accountant. I try to be ready with a business card and defer them to book a tax planning appointment on my website. I try to make my party line, “I’m on vacation, so I’m taking a break from the numbers. I hope you don’t mind.” Doesn’t always work, but it gives me a better feeling of maintaining boundaries. I like your idea of identifying with a different profession. Since I’ve always done accounting, the largest stretch I could probably make while staying honest is that I’m a consultant.

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