Tax office operations

Tax Office OperationsBest Practices of Successful

Independent Tax Firms

Systematic Operating Methods

Systematic Operating Methods

Policies & Procedures Personnel Policies

Company Philosophy• Mission & Guiding Principles• Delivering Client Value• Image / Professionalism• Productivity / Efficiency• Confidentiality• Integrity• Quality• Creativity• Teamwork• Communication• Employee Growth• Community Service

Personnel Policies• Honesty• Confidentiality• Substance Abuse• Sexual Harassment• Authorized Expenses• Solicitations• Dress Code• Personal Phone Calls• Internet Policies

Recruiting Tax Preparers

• Shortage of Tax Preparers– Preparer Regulations– Preparers Retiring

• Recruiting Tax Preparers– Homemakers with young children– Early retirees– Other prospects

• Training New Tax Preparers– Operating a Tax School– Online Tax Course

Hiring and Scheduling• Hiring Tax Preparers– Applicant Screening– Employment Application– W-4, I-9

• Employment Agreement– Non-compete provision– Non-solicitation provision– Confidentiality provision

• Scheduling Tax Preparers– Minimize “dead time”– Monitor productivity

Tax Preparer Training• Continuing Education– Tax law updates– Advanced courses– Small Business courses

• Pre-Work Training– Policies & Procedures– Customer Service

• On-the-Job Training– Buddy System

• Secret Shoppers

Make Employees Aware of Marketing Programs• Signage• Guarantee• Discounts• Group Tax Service• Media Advertising• Internet Advertising• Online Directories• Publicity / PR• Promotions• Client Newsletters• Direct Mail (e.g., Newcomers)• Recording Sources of New Clients

Professional Office Park

Employee Sales Efforts

• Business Cards• Calling Prior Clients• Keeping Signs On• Visiting Neighboring Employers• Attending Networking Events• Community Service• Speakers Bureau• Telephone Responses• Refer-A-Friend• Tax School Student Referrals

Tax Office Policies• Telephone Answering• Pricing Philosophy• Price Inquiries• Tax Information• Client Screening• Office Hours• Weather Closings• Client Complaints• Refunds• Gift Certificates

• Payroll Procedures• Daily Reports• Supply Requisitions• Asset Requisitions• Work Stations• Payment Methods• Bank Deposits• Credit Card Processing

Administrative Procedures

Tax Preparation Procedures• Tax Associates’ Duties• Tax Information / References• Employee Work Schedules• Appointment Procedures• Interviewing Procedures• IRS Due Diligence• Drop-off Return Procedures• Appointment Procedures• Checking Tax Returns• Taking Turns – “Stacking”• Personal & Relative Tax Returns

Tax Prep. Procedures (Cont.)

• Out of State Returns• Incomplete Returns• Processing Returns• Client Information• New Client Sources• Errors / Corrections• Client Folder Setup• Copying / Scanning• Missing Information• Tax Preparer Record

Office Hours and Staffing

• Evenings & Weekends• Holidays• Overtime Policy• Receptionists & Office Assistants• Office List• Employee Roster

Tax Office Work Flow

Appointment

Interview

SourceDocuments

TaxPreparation

Checking andReview

ProcessTax Return

ExitInterview

ElectronicFiling

Communication

Tax Preparation Fees• Schedule of Charges

– Tax Preparation– E-Filing with Tax Preparation -

Free– E-Filing Self-prepared

Returns?– Bank Application

• Time Charges• Discounts• Price Increases• Satisfaction Guarantee

E-Filing / Bank Products• E-filing Procedure• Refund Anticipation Loans (RALs)• Refund Anticipation Checks

(RACs)• Stored Value Cards• Direct Deposit• What Goes to IRS?• Proof of Account• Self-Prepared Returns• Taxpayer Disclosures & Info.• IRS Due Diligence• Fraud Warning Signs• Glossary of EF Terms

• Advantages of E-File– Fast Refund– More Accurate– More Secure– Lower Cost– Proof of Filing– Balance Due

Budgeting

Employee Compensation• Tax Preparers

– Base Pay Rate– Bonus Compensation– Experience/Professional

Attainment Pay– Office Bonus Pool

• Office Managers– Office Override– Transmitting

• Receptionists& Assistants

• Employee Benefits

Employment Agreements• Employment Term & Hours• Tax Preparer Duties

– Client Interviewing & Tax Preparation– Checking & Processing Tax Returns

• Restrictive Contract Provisions– Non-Compete– No Solicitation– Confidentiality

• Office Manager Addendum & Duties– Scheduling– Transmitting– Quality Control– Client Service– Personnel Issues

Technology• Computer Equipment– Used PCs– Dual monitors– Scanners

• Computer Systems– Networks (LAN, WAN)

• Communication– Internet Service– VoIP Phones

• Virtual Tax Service

Tax Preparation Software• Functionality

– All states– Corporate returns– Bank products

• Limitations– Stability– Exporting data

• Support• Change Vendors?

– Training, learning curve– Poor support– Errors, lost data, downtime, e-filing glitches – Cost

Quality Control• Checking Tax Returns• IRS Due Diligence– Training

• Client Service– Professionalism– Tax Planning

• Secret Shopper– Checklist Report– Pay in Cash

Summary• Goal: Level the Playing Field• Use Best Practices• Provide Tax Preparer Training• Systematic Operations• Operations Manual• Policies & Procedures• Schedule of Charges• E-File / Bank Products• Employee Awareness of

Marketing• Personnel Policies• Employee Compensation• Employment Agreements

Contact Information

• Chuck McCabe• 1-800-984-1040• [email protected]• www.TheIncomeTaxSchool.com