Evaluating Tax Season

Once we are past October 15th it will be time to do an "after action" report on the business income tax process.

Tax professional should block time to evaluate clients and processes. Clients who are "problem children" should be evaluated for a discussion or perhaps for a dismmisal. 

Fees should be evaluated (any information you can glean from competitors might be useful).

Many practices have good intentions but never quite get around to such a report session, and then the holidays and preparations for next year start to get in the way.

If you do not discuss the issues the issues will not go away.

More in future posts.

Mis-Misunderstandings on Taxes

Friction between tax clients and tax accountants:

Clients provides information at the last minute.

Clients provide incomplete information.

Client bookkeeping is a hot mess, or at least an incomplete mess.

Clients want lots of free advice along with the tax return prep.

Clients have short term focus.

Clients show up with TikTok and social media tax planning schemes.

Clients are like "my neighbor Joe pays less tax than I do."

Clients ignore or underpay quarterly estimates.

If you are the client look in the mirror. Are you guilty of the above?

Unexpected and Unusual Disasters

 A bridge over an interstate started "shedding concrete."

That is, concrete chunks were falling on the interstate. The overpass bridge had to be closed. No vibrations allowed. 

Out of the blue.

The bridge was closed. Suddenly there was a six mile work around to get to several housing and business areas. 

Really hard on the business and employees.

AI Creating Phony Invoices

 Latest scam?

Phony invoice scams are nothing new.

But......

Phony invoices generated by AI are like a plaque of locusts, lots and fast moving.

Also, email request for payment with bank links are lurking out there.

Business owners must tighten internal controls.

Professional firms must warn their clients AND tighten internal controls.

Potential Impacts of Risk/Disaster Events

So two of the most likely disaster events for your location/s would be fire and flood.

 What would be the possible outcomes?

* business shut down for (possible time period)

* inventory lost in the amount of $_____

            difficult to replacement?

*equipment / furniture / fixture

            what? lost or damaged?

            replace or refurbish?

* employees in immediate jeopardy

*employees out of work for _______ period

            employees moving to other employment? probability

* customers who move to other services or vendors?

* business records damaged or lost

*IT resources likely to be damaged or lost

This analysis is quite necessary and quite sobering.

Professional Practices - Plan for Disaster

 Spend some time planning for a disaster.

Play the "what if" scenario.

What if fire, flood, blizzard, power outage (like Indiana this month) or other disaster kept you out of the office and/or without utilities for several days?

Or worse, what if your office is damaged so severely it must be abandoned?

What if?

What preparations can be done?

Potential Impacts - Part 1

 What would be the impact of?

... being flooded out of your office during tax season?

.... a blizzard that shut down your area for several days?

.... a fire in your office building? (water and smoke tend to travel far and fast)

.... an ice storm that cuts power for four days? internet for five days?

.... a fire in a commercial building two blocks away?

.... a chemical spill in a near by truck depot?

This analysis depends on your location, the type of structure, the type of neighbors (in the building and  in the neighborhood), and your geography and topography.