Who Needs a Job?

A few weeks ago I attended a four day weekend seminar on practice development. I am always looking for ways to increase my business, increase efficiency, and provide a better, more value added service, to my clients. The investment in time and money was well worth it.

Spending a long weekend in a hotel conference room for 12 hours a day is grueling work. The variety of topics required attention with a high level of concentration. The money investment was large and I wanted the most value for my dollar.

The first two days we covered acquiring clients and managing the work flow. Getting more work is the easy part. Getting the work done is the challenge. Since I had committed to adding a few more employees, I focused on the client acquisition methods taught with special attention toward moving work through the office in a timely manner without errors.

On day three we practiced what we learned. On day four, alternatives were offered. The one I want to talk about today is outsourcing in the accounting and tax industry. All during the presentation I wondered how America will ever produce jobs when even tax preparers and bookkeepers are looking to move work to India for a fraction of the cost. I listened to the details knowing I would never send my client information anywhere else. Many other accounting firms were far more interested in sending work abroad.

The company that presented their services touted the high level of education of their employees and security of data. The cost was around $12 per hour per employee. I would still be required to scan all documents into the system for the guys in India to do the work. It really is a turn-key service.

The cost of $12 an hour is only a mild advantage until you consider the additional costs of employment: worker's compensation, unemployment (federal and state), payroll taxes, and benefits. It is cheaper to hire someone to scan work in than to hire a professional. And other overhead, such as the space requirements for employees to do the work, adds up.

There are certainly advantages to outsourcing to another country. I will never do it in my office however. I want a personal relationship with my clients. If work is done in house, opportunities to save the client money increases. My profit margins are a little lower, but I hire Americans. It is worth the commitment.

And one more thing. Your accountant cannot send your social security number out of the country without your consent. Consent cannot be buried inside the engagement letter either. If your accountant/tax preparer asks you to sign such a form, get a new accountant. You want a tax/accounting professional committed to you.

The same rules do not apply to partnership and corporate tax returns. Bookkeeping either.

Busy Bee

I would blog more, but my schedule is tight with year-end tax forms and my work over on Hubpages. HubPages has a financial planning writing contest and I am submitting each day on the subject proposed. I won 2 day this past week. Check it out.

Financial Planning Basics

Business and Hobby Losses

Alternatives to Bankruptcy Contest daily winner

HELOC vs HEL

Auto Loan Modification Scam Contest daily winner

Taxes, Student Loan Forgiveness and Bankruptcy

Use PayPal to Accept Credit Cards

Choosing the Best Accountant

Technology

Life is easier today with computers, microwave ovens, cell phones, cable TV, etc. Rarely do we think about life without our technological tools, even though many have been around for less than a generation.

If a storm knocks out the electricity we become acutely aware of technology, or lack thereof. Still, with the current out, our cells phones and laptops work until the battery runs down.

When technology is at its best, life is easier, more fulfilling, and pleasant; we can get more work done in less time; we can enjoy entertainment in ways unimagined only a few years ago.

But what happens when technology fails? This became painfully clear to me over the past week. I planned on upgrading QuickBooks in my office over Thanksgiving and the stress followed fast.

I figured by starting over the holiday, I could resolve issues before the next work week. What’s the worst that could happen? Well, let me show you how bad things can get.

First, I ordered QuickBooks Accountant 2010 online and downloaded the program onto each computer. Things went smooth. My office is on a server. It seems QuickBooks 2010 requires Microsoft Framework 3.5 and other update files. My server didn’t update to Framework 3.5. The C drive isn’t large enough for all the added files. My computer guy had to work half the night finding enough room to get the job done. Three days later, I finally got QuickBooks to work on the server.

Technology can save time, but it also can waste so much more time, and I’m not even talking about games and wasted time surfing the web. A tax office today cannot serve their clients without technology. I’m just scared. Soon, I’ll need to install the 2009 tax software. I hope is runs smooth.

Wish me luck.

Federal Disaster Area

The Sunday and Monday of Thanksgiving week I testified in Atlanta in a hearing for a client; Thanksgiving rounded out a large part of the remainder of the week; and Monday and Tuesday of this week I attended continuing education classes with most of my staff. Today I am struggling with computer updates stemming from QuickBooks issues. As a result, I am really far behind and my desk shows it.

President Obama has declared my desk a federal disaster area; low interest government loans are available to clear out the detritus.

The only way to attack such a pile-up is to have a game plan. I am big on goal setting and carry a Performance Planner with me wherever I go. I have set out a detailed plan to catch up. First, I have to get QuickBooks functional. That is the fly in the ointment. I don’t know how long it will take. Once QBs is working, I’ll work late and this weekend getting the paper moved.

Wish me well. When I get a serious, determined look to my eyes, look out. I am on a mission. As God is my witness, I will get all projects up to date and make additional progress on projects that need results.

And I smile while I work, too.

7 Reasons Why...

NYT bestselling author, John Scalzi, has a wonderful post on his blog explaining why he doesn't read unpublished writers. Yesterday, he outlined how Oscar-nominated screenwriter Josh Olson won't read your screenplay either.

My focus today covers professionals in all service industries. Below is my Top 7 list of reasons why I don't give free tax advice. I think it applies to all professional service providers.

1. I have a family. Would you love being the child of a man that works long hours for free? Spouse? Walking into my office and demanding I drop everything to deal with an IRS letter resulting from your self-prepared tax return, sits poorly with me. If I say I'll fix it for $100, don't say, "That much!" Charging you $100 is already a gift; don't make me take it back. Also, if I offer to fix a problem you created, be flexible in scheduling. Saying you are only available after hours makes me more inclined to choose more family time over your issue.
2. The IRS has a free hotline. Yes, I know the IRS hotline is wrong half the time. But it is free. Before I give advice, I need to know my client. Prescription before diagnosis is malpractice. Get it. If you have a tax question, I am more than happy to help you. Set an appointment where we can sit down and review your full tax situation. Without seeing a previous tax return, I cannot give accurate tax advice. And I do charge for my time. Hence the term, professional.
3. Word travels. In the old days, when I was hungry for a client, any client, I answered tax questions rapid fire for anyone, anytime. I sounded like a radio call-in show. The advice was about as sound, too. Once I started giving free advice, word spread that I was the sucker to call for free tax help. Do-it-yourselfers loved the free, over the phone, tax preparation service: professional help without a fee. In short order I reviewed my policy and refused tax advice over the phone.
4. Finals hurt. Remember final exams from your college days? You studied your heart out preparing for a full week of grueling tests. Accountants consider those the good 'ol days. I study every day, year round, to keep up with the changing tax climate. I spend around $20,000 per year training staff and myself, including research services. I field 15-20 tax-help requests a day, triple that on Monday; higher during tax season. I have people call me at home, some visit me at home, for an answer to a "quick question." All this for free, as if my time isn't valuable. My final exams extend year round. It does get exhausting.
5. Liability. Answering the quick question for free leads to another dilemma: liability. If I answer a question without reviewing the involved documents, I am open to lawsuit for bad advice. Think about this for a moment. I get zero income and unlimited liability. Should you trust advice from someone dumb enough to take unlimited liability without any gain? This is why you must sit down with me. I must review all relevant documents before giving tax advice.
6. I am not paid. By now you should see the underlying issue. I want to get paid for my time. That is why I spend twenty grand a year training and why I leave my family for 10-12 hours a day. I really want to be home with my wife and kids, I really do. I work to give them nice things. Then, I want to be at home with them, enjoying life together, as a real family.
7. I choose who I work for pro bono. I help several people a year for free or nearly so, including tax preparation. Sometimes, a long-term client, now retired, is deserving of my gratitude, so I do their taxes gratis. I take a limited number of low-income people off the street and help them without a fee. Don't call me up and say, "You did mom and dad's return for ten bucks, why do I pay $***?" The answer: I would go broke if that is all I charged. Don't ask me to charge your parent's more. I've have this request several times over the years. I give back to the community, but I need to survive.

I like new clients; love them, in fact. They are the lifeblood of my company. Use the above information to see the world from the service providers perspective. I have a lot of clients that need work done by a deadline; they come first. I am selective in who I choose to serve. Respect my decision. At the end of the day, all I want to do is go home and hug my girls. No more quick questions. Set an appointment so I can really help you. I want to get paid for my effort and talents; same as you.

Balance

Except during tax season, I'm usually out of the office on Friday. If I have an appointment I come in, if not, I work from my home office, visit business clients at their site, or spend time with Sue and the girls.

Friday is a day to catch up on work without interruptions. Working from home also saves commute time. As a result, I catch up on paperwork that should have been done a week ago. Nothing feels better than making progress.

Balance in life is essential. Running your own business is challenging and stressful. Maintaining balance between work, family, and personal time is important. I see too many clients working day and night, weekends and holidays, and burn out, leading to business failure.

If you own your own business you work more than most. You must commit to balance or your health and personal life will suffer. Never apologize for taking time off. Enjoy your career, enjoy your family, and most of all, enjoy life.

Yes, I am working from home today. I will have time with my family today and four generations of Schroeder's will sit around the card table in my Sunroom tonight, as they do most Friday nights. Oh, how we love a good game of Sheepshead.

Here's to balance.

Good Business Advice for Everyone

I commented on a blog last night that I think is solid advice for anyone in business. Give it a look-see.

http://pubrants.blogspot.com/2009/08/writing-as-business-part-2.html

Work Flow

Work flow, or paper madness, drives accountants nuts. Sure, I have days where little new work comes in, usually in late November. Most days, a steady stream of work flows in the door, requiring immediate attention. At a later date I actually do the work.

Getting the work done is the hard part. After eight hours of phone calls, visiting with clients, and answering questions, I need to get the work done. All to often this requires working long into the night and weekends.

So why the blog post? I want you to understand how an accounting office works so we can serve you better. If Jeff or I are unavailable, we are not dissing you. Sometimes we close the door and get real work done. This serves you, too. For us to complete your work, we need time to do it. And every once in a while I like to see my wife and kids. I know that is selfish, but true.

Points to consider: 1.) Allow Jeff and I to give a reasonable completion date and let us work toward it, 2.) Provide us with requested materials as soon as possible, 3.) Have your papers in order. In other words: No shoebox filing cabinet.

If we are not able to meet a deadline, I promise to inform you as soon as I am aware it. Jeff and I share a common goal; to serve you as quickly as possible without sacrificing quality. No one wants to over-pay taxes just so they can get in and out a day sooner.

This post is not a complaint either. I want you to understand work flow in my office so you don't feel forgotten on important tax and financial issues.