Guest posts are always difficult. Too often the material that crosses my desk is of very low quality or thinly disguised ads, usually both. I pass faster than a speeding bullet. 

Then there are people I know that I would love to have write a guest post. They are articulate and care about the reader. Unfortunately, they are also busy. However!!! Through good fortune I was able to convince one of these people to to write down her wisdom for you, kind readers.

Debbie Todd has followed this blog for a long time and is a recommended tax pro on the Find a Local Tax Pro page of this blog. Seeing Debbie work with clients on social media has left no doubt in my mind of her level of knowledge, experience and willingness to serve her clients at the highest level possible. 

This post started over a discussion on Facebook. Debbie left a comment and I said I would love to hear all the details about it, preferably as a guest post. It was a lot of work, but she complied. As a result, you get to pull back the curtain and see how things run in a smooth operating tax office that serves clients like royalty and how you can get the same results with your tax pro. I wish I always lived up to those high levels.

Be sure to read to the end. I will copy Debbie’s contact information from the Finding a Local Tax pro page to the end of this post, along with a link to a worksheet you can download. You want that worksheet!

Thank you for the post, Debbie. It will help readers and me alike.

 

Guest post: Debbie Todd of iCompass Compliance Solutions, LLC

 

SECRET INSIDER Bean-Counter Chat Alert – Earlier this year, the Wealthy Accountant and I chatted online about what CPAs and Enrolled Agents like to talk about — innovative ways to serve, educate — and yes, sometimes even boot our clients in their business behind — while keeping our sanity and a semblance of family balance.

I promised to share a couple of strategic tips and a tool I developed that transformed not only my own business, but also generated amazing results for my firm’s clients. Then unexpectedly, LIFE got in the way of delivering on that promise — until now.

I lost two long-term step-parents within 3 months and then both my brothers had major cardiac events. Experiencing sudden and profound change, loss and grief sure puts things in perspective. Not an excuse — but I hope you can relate. Life throws unexpected curve balls which get in the way of best laid plans for your business, your personal life and even your legacy. Decisions matter! Adjust, breathe and take the next step. And the next…

Just as Summer gave way to Fall — and now as our lungs are filled with the brisk air of Winter — know that Spring 2020 is just around the corner. A new season, a new decade and untapped new opportunities await.

Read on to learn how…

 

David or Goliath – What Mattered Most?

The log in the fire is crackling, casting a rosy glow of warmth on the stockings, the twinkling tree and the ribbon-wrapped presents… 

As happens so often during the holiday season, I spend time reflecting on what worked well (and didn’t) with my beloved clients. I muse on the opportunities and challenges they faced in growing their business this year, adapting to new tax rules, employee issues, as well as several experiencing traumatic family events, which suddenly altered some of their best-laid plans.

What tips and tools could I share to allow them to be more successful in 2020 and beyond? I’m their CPA, their trusted financial coach and I take that privilege seriously. So do most of my amazing bean-counter friends.

Whether you are a large international company, a locally owned small business entrepreneur or a trendy global digital nomad, having rock-solid business goals and smart financial processes behind you is critical for your success. It’s not your size — it’s your heart, purpose and willingness to take action. Like David. . . 

Let’s face it, you’re toast without it… and often sooner rather than later.

 

Seizing a New Decade of Opportunities

As I gaze thoughtfully into the log’s dancing flames and scratch our aging Labrador’s graying ears, I realize that in just a matter of days, we will usher in a brand new decade…and brand new opportunities.

With last year’s tax law changes, a plethora of retirement planning opportunities (the SECURE Act, for example), combined with continuing economic growth, this reflection seems more weighty, more impactful and infinitely more exciting than prior years.

So, as a seasoned tax and financial strategy practitioner, I regularly share updates on these opportunities with my clients via email and during our quarterly meetings — but, how do we address (get to know) new businesses who want to join our cherished client family?

 

Communications and our Beloved NCO Triage

Like the log’s embers keep the fire going, providing both light and warmth, having a foundation of trust, clearly stated goals and objectives fueled by open communication, regular review and adjustments — translates to success on both sides of our client relationships.

Think about when you go to the doctor or the emergency room. You want the professionals taking care of you to listen and understand what is going on with you so you can get the correct diagnosis and treatment, right? Well the same holds true for your business or family financial health.

Over the last several years, I have developed what we call our NCO Triage, or New Client Onboarding Triage. It has blossomed to over 7 pages – and NO, this is NOT like your tax organizer. It’s a strategic financial life goals framework that helps me help you turn your dreams from vision into reality.

Yes, it asks questions about your business like what kind it is, what state(s) you operate in, your revenues, status of tax filings, who does what in the finance functions, etc, but also covers key details like a SWOT analysis (strengths, weaknesses, opportunities and threats).

Next, we learn about your life goals… not just for your business, but how your business fuels your life’s passions and dreams. 1, 3, 5, 10 and even 20 years. After all, that IS why you are working, right? Finally, we discuss your communication styles and preferences so we are both comfortable with how we will play together going forward. Ninety-five percent of preventable challenges stem from miscommunication.

So, WHY is this Important?

Keeping an eye on the fire is important. Left unattended, the fire eventually dies out and the cold will seep in. A few strategically placed money tips will keep your financial fireplace warm and toasty.

As stated earlier and without sounding too cheeky (okay maybe just a little) — your cash flows, financial foundations and habits are the lifeblood of your business. Your goals and vision sets the heartbeat and pace with which you operate. Slow and steady wins the race.

Wanna know something cool? Meeting with your CPA or EA can actually be FUN! Seriously…

I just wrapped up Q4-2019 meetings with many of my clients. Most calls start out something like this… ”Hey Deb, I’d like to meet with you for an hour this time. Let’s talk about our financials and the tax items for the first 30 minutes or so. Then I have a couple of ideas I want to run by you, so put on your counselor hat for the rest of the call, OK??” What an honor to help them explore possibilities that will improve their lives. After all, wouldn’t you rather be helping transform your client’s future with smart financial tips and tools as opposed to simply fixing and filing their historical transactions? Seriously, I get just as jazzed up as they do — and LOVE to see their dreams become reality.

 

Key Takeaways and Next Steps for Caring Pros and Smart Clients

Mylie, our Lab, is looking at me with that “Mom, it’s time for bed” look. I get up, turn the Christmas tree lights off and add an all-nighter log to the fire — so it will have energy to burn, keeping our house toasty warm while we sleep and dream.

Fellow Tax and Financial Pros — Key Thoughts AND A GIFT

  1. Proactive Planning with Forward Focus: Understand that your best value as a passionate and knowledgeable financial professional lies in proactively helping your clients achieve their dreams and life goals. Right, wrong or sideways, you can only fix and file past transactions. Instead, help your clients avoid those mistakes in the first place while providing tools to make their future dreams a reality. (Hint: Start on page 4 of the NCO!) Leverage this mindset into your practice’s core values and I believe you’ll both be happier as a result. 
  2. It’s NOT about the Money: This is a lesson I learned the hard way. Don’t compete strictly on price – EVER. Not everyone needs to be your client. Read that again. It took you YEARS of training, countless exams and ongoing research every single year to do what you do and do it well. It’s about VALUE: The amount of money I save clients each year far supersedes their invoice amount. Don’t sell yourself short – your knowledge is worth it.
  3. Equip Your Clients: Many clients are NOT money gurus – they are great artisans in their own field, but need your financial expertise so their business can thrive and grow. Offering monthly or quarterly meetings, a Q4 tuneup and emails of key tips are simple ways you can help your clients go to the next level. Plus, it provides a reasonable revenue stream outside of tax season!
  4. The GIFT: You can download a copy of my NCO and adapt it for your firm’s use. The fun part starts on page 4! Understand, I am NOT giving tax or legal advice and this document does not replace your well-crafted Engagement Letter or professional due diligence procedures. Use the following link:

2019 NCO – New Client Onboarding Triage Initial Questionnaire Template

Smart Clients Wanting to Up their Game (It’s OK if you read the Tax pros list above too)

  1. Identify Your Goals and Vision: As 2020 begins, what do you want to accomplish in the next year or the next decade? Seriously, a little dreaming and planning can make a HUGE difference! Feel free to download the last four pages of the NCO, dream and jot down your thoughts (crackling fire and aging Labrador optional, but highly recommended)!
  2. Plan With Your Tax/Money Pro: If you are not planning with your tax pro outside of annually filing your taxes, you are missing out on a golden opportunity to make small (or even large), consistent improvements to your financial bottom line throughout the entire year. Yes, you should pay them for these meetings too – unless they are already on retainer.
  3. Execute, Review, Adjust, Repeat: Dreams and vision are great, but it’s ACTION that wins the race…100% of the time. I’d rather see imperfect action (within legal bounds of course) than a perfectly procrastinated idea. As part of your meetings, you can set timelines, deliverables, checkpoints and get objective feedback and insights to adjust course, as needed. Then repeat!

I, for one, am truly excited about spending quality time with loved ones and enjoying Christmas – celebrating Jesus and all the wonders we have been blessed with – and those opportunities which await. [Editor’s note: Debbie delivered this to me December 23rd. Your lazy editor didn’t get to it until after the 1st of the year.]

Wishing each of you a joyous, happy and safe Christmas and New Year – AND a next decade that blesses your family and business beyond measure!

Debbie Todd

Your Friend in Financial Wellness, Debbie

 

 

 

 

 

 

 

Contact Information

iCompass Compliance Solutions, LLC, dba 1 Hour Impact Firm #5917

Locations we prefer to serve: SW WA or Portland, OR Area. WBE certified in both OR and WA

Contact: Easiest to reach me via email or https://www.facebook.com/TheSpunkyCPA/

Email: deborah.todd.cpa@gmail.com

Areas of practice: Federal and state personal and small biz taxes, Non-Profit – 990s, IRS compliance and remediation, divorce and estates, also small biz startup strategy. Niche expertise in small business interactions with State and Federal Government Contracting.

In person or fully digital capabilities.

Areas of practice you don’t handle: Ex-Pat, valuation disputes, M&A.

Bio: You can learn more here, including govt background- http://1hourimpact.com/about-us/

Interesting tidbit: Special passion for teaching smart early childhood financial literacy using engaging, interactive theater.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

cost segregation study can reduce taxes $100,000 for income property owners. Here is my review of how cost segregation studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here. 

Taxes laws are a mess. I have solutions to simplify taxes and lower rates. Using humor, I share tax tips for deductions for individuals and small businesses. I also address the politics behind such required changes. #wealthyaccountant #taxhumor #taxdeductions #taxtips #smallbusiness #funny #politics #presidentIf you’re reading this the day it’s published it means this is the due date for extensions for partnerships and corporations. If you work in a tax office and things are quiet you might want to consider another job. (This is an inside joke directed at a former employee who struck out on her own. If you need bookkeeping in Vegas I know a qualified person to handle that. Seriously.)

I thought today would be the perfect day for me to announce my candidacy for president with a few tax policies I’ll sign into law via executive order if elected. Some of you might be darn excited about this unwelcome event as you think I’m a Democrat. Other might be excited because they think I’m a Republican. The truth is I’m neither. I prefer to waffle between both side of the aisle or as the police call it: walking in a drunken stupor.

As much fun as I’m going to have writing this, I am also dead serious. What follows are tax policies I would like to see instituted. Some things will sound very liberal and some things will sound downright conservative. Basically, I should tick off just about everyone in the room with something.

Welcome to politics.

Ground Rules

Before we start I want to point out some things I plan as president are not completely tax related. For example, I will deal with the minimum wage, but connect it to tax policy. The same with welfare of every kind. Along the way I’ll fix the health care issues of the United States by default and solve trade issues and immigration policy in a way everyone will love until I’m elected. Then a third will love me and two-thirds will hate me until we approach the next election. Then the population polarizes and it ends up a dead heat until I’m assassinated re-elected.

Tax policy controls everything. Al Capone gets away with murder until they called in the Treasury Department. (It worked!) Welfare once required a trip to Social Services. Now it’s handled at the tax preparer’s office. Corporate welfare is even worse.

Trade disputes sometimes result in tariffs, an excellent way to tax your own people while convincing them it punishes the other country. (Don’t underestimate the ignorance of voters.) Once again important issues of national importance end up in a tax bill.

So, let’s get down to business. I’m confident I’ll win your vote.

Simple and Basic

With the exception of my own profession, everyone should love the basic framework of my tax plan. Republicans lowered tax rates to the lowest level since taxes were collected in this country. And I think they’re still too high!

For individuals and families: I propose to raise the standard deduction to $100,000 for joint returns; $75,000 for head of household returns; and $50,000 for single taxpayers. That means a married couple filing jointly can enjoy their first $100,000 of income tax free! (I know! It makes me giddy too.) Exemptions were eliminated with H.R. 1 and I don’t want to rock the boat so all you guys get is a huge standard deduction. In fact, itemizing is gone! If a hundred grand tax-free isn’t enough to stay solvent there isn’t a thing any politician can do to help you.

7 ways your taxes should be lowered. Tax humor might be funny, but also illustrates how taxes must be lowered. Find tax tips and deduction for individuals, the self-employed and small businesses. #wealthyaccountant #politics #president #taxplan #taxhumor #deductions #smallbusinessAs for tax brackets, people like the idea of a flat tax. I propose two brackets so my peers at least have an outside chance of staying in business: 20% and 50%. After the standard deduction, the next $400,000 is taxed at a flat 20%. All income above this level is nailed at a 50% rate with nary a deduction available to reduce the tax.

I hear the howls of protest, my tax obsessed readers. You think President Accountant will bankrupt the nation with such a plan. Au contraire. To pay for this simple tax plan all the welfare tax credits are nixed. The Earned Income Credit: gone. The Child Tax Credit: gone. Savers Credit: nope. Education credits: huh? No, no, and no. No more handouts on the tax return. Let’s turn the tax office back into a tax office and not an unpaid extension of the welfare department of the government.

Also, all income is taxed at the same rate. No more special rate for qualified dividends or long-term capital gains.

Poor people need not complain. The Earned Income Credit was designed to compensate low income workers with a kickback of their FICA taxes. In my tax plan every worker gets the first $20,000 FICA tax free. If you work you get an instant EIC on your paycheck.

HOWEVER. . .

Social Security taxes now are like the Medicare portion of FICA: paid all the way to the sky. And FICA applies to ALL income: dividends, interest, capital gains (long- and short-term) and more. A sports star gets a $20 million bonus. Good for everybody! A CEO of a public company enjoys a windfall of stock options? Good for everybody. The Social Security and Medicare financial problems are solved.

If you think about it (I have) the reduction in tax credits more than offsets the massive standard deduction increase. We may have to institute another round of tax cuts or risk paying off the national debt.

I see fear in the eyes of business owners. Don’t worry. I thought about you guys, too.

Business Taxes

This crazy new tax deduction for qualified business income is insane. All it does is increase complexity in the tax code, lining the pockets of tax professionals and attorneys practicing in tax law. In my plan the QBI is gone.

WAIT!

Don’t shoot! I propose a better solution. Businesses will enjoy their own standard deduction of $1 million. That’s right, my Republican friends, every small business owners will enjoy their first million tax-free on top of their generous standard deduction.

Big business is sweating right now, worried I’ll fill the Treasury at their expense. No way! As a gift for funding my political campaign you get the same $1 million standard deduction, plus a flat tax rate of 15%. You heard that right. The Republican plan of 21% is still waaaaay too high to compete internationally. We will start at 15% and reduce the rate 1% per year until it hits 12%.

Oh, don’t be sad, my liberal friends. To pay for this tax cut we will cut corporate welfare the way we did for individuals. If you think welfare to people is costing taxpayers, you haven’t added up how many handouts are lining the pockets of super-rich corporate executives. Those handouts will be eliminated completely.

To prevent small businesses and the big guys from gaming the system, all businesses controlled by a group only get one $1 million dollar business standard deduction only. In other words, you only get one million dollar deduction per investor. (And you guys thought I didn’t give this adequate thought.)

Tax System

The U.S. is one of only a few remaining nations taxing on a worldwide system. My plan brings us in line with the world by switching to a territorial tax system, where only profits from inside the U.S. are taxed. The tax rate for profits outside the U.S. is 0%, giving a major competitive advantage to American companies operating abroad, something they have to dance around now to compete with other nations. That alone could resolve half the trade deficit.

Americans working abroad would not be taxed unless they earned the money in the U.S. The Foreign Income Exclusion would be obsolete with President Accountant.

To prevent games, corporations could not shift profits outside the country. Strong measures will be in place to avoid such a practice with a 10,000% penalty for offenders. (You’re getting an awesome deal. Don’t get greedy!)

Foreign companies that want to sell in the U.S. would also pay U.S. taxes for their profits earned in the U.S. (Where ya gonna get a fairer deal than that?)

Trade Wars

This is just plain stupid. Tariffs are a tax on your own people! I would open the door to trade with all tariffs eliminated. If other countries don’t follow suit, fine. They can tax their own people more. All the better for our economy.

Looking for a fair tax plan? Then I know the perfect guy to vote for! Taxes are a mess is desperate need of organization. #wealthyaccountant #taxplan #tax #taxes #taxhumor #funny #deductions #creditsThe U.S. and its businesses whine endlessly about free markets. Well, trade wars and tariffs are the exact opposite. Compete or go broke. Under President Accountant we will allow markets to decide the winners and losers.

The one issue we have a right to complain about is the theft of intellectual property. (I’m pointing at you, China.) Our current president has a point on trade issues with China and a few other countries. Policies that strip intellectual property from U.S businesses will be dealt with harshly. If it is determined (China is the worst offender here) that theft has taken place, the government of the country where the offending company resides must compensate for losses and prevent such theft. If the government of said country can’t regulate their own people that country is barred from selling any goods or services in the U.S. until they govern responsibly. No more stealing our stuff and using it to sell against our own hard-working business owners.

The details are more than I can publish right now, but trust me. It’ll be great! The best trade plan this country has ever seen.

Health Care

It is repugnant that the wealthiest nation on the planet can’t provide basic medical care for all its people when other nations do just that. Therefore, I will sign an executive order my first day in office expanding Medicare to cover all U.S. citizens from Day 1 to Day End. No more Medical Premium mandate needed. If you want more than basic coverage; buy additional coverage. There is no additional deduction and businesses are not allowed to provide more health coverage to employees. Businesses are out of the health care business from now on (unless they are a medical business).

To pay for this basic benefit the Medicare portion of FICA will be increased 2%; half paid by the employee and half by the employer. All income, including dividends, capital gains and interest, will pay the additional FICA tax. And remember the FICA exemption above. Nobody gets hurt.

I hear my conservative friends complaining already. “We need to keep government out of our conversations with out doctor,” you say. I agree. Let’s keep your employer out of it, too. I for one am sick to death of telling my employees what kind of medical care they can get. Unless I’m a doctor or hospital, I’m out of the health care business and devoting all my time to my business, which is what I’m good at and the reason I started my business.

Minimum Wage

Is that grumbling I hear at the back of the room? No worries, my liberal friends. Under President Accountant the minimum wage will be abolished! You heard me right. Now holster your weapons.

The reason I’ll eliminate the minimum wage is because if we have a minimum wage to increase the number of jobs, then it stands to reason we must have a maximum wage to create more jobs. Don’t hear that argument too often, do you?

Eliminating the minimum wage will not put you at risk. Your favorite president will guarantee you see $15 per hour minimum on your paycheck each and every week. Rather than force companies to pay a minimum wage, there is a special tax for every hour any employee earn less than $15 an hour. That special tax is 20 times the amount your employee paid under $15 per hour.

I bet there will be no companies paying less the $15 an hour right quick.

Yes, businesses will be encouraged to automate with higher wages. But when has increased productivity been bad for a society? You get more for less. And with the new standard deduction and Medicare-for-all programs you will have a secure safety net.

There will be slightly fewer jobs, but they will pay better. Do I have your vote yet?

Under Cover

There is a lot to love by both sides of the aisle with my plans. Unless you are a tax professional you probably like my proposals.

It is unlikely I’ll actually be elected. Rumor has it a stark-raving mad crowd of accountants are approaching the Accountant farm as I write. With such a simple tax code with no loopholes, tax professionals are out of business. But then again, what did we produce? We manipulated a system created by man with no logical connection to reality. Very unproductive.

HUH!?

Was that gunfire?

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Worthy Financial offers a flat 5% on their investment. You can read my review here.