Accounting and Bookkeeping Articles

Trust can often determine the longevity of a business.  While small businesses may be able to advance for some time using aggressive marketing tactics, customers will not look back after they lose trust in a small business, especially if you provide financial services like tax preparation.  Last week we discussed ways you can help clients avoid an audit, and one of those was by preparing their taxes yourself.  In this week’s article, we’ll look at ways you can secure your position as a trustworthy tax preparer.

As you build relationships with clients, it’s important that you do all you can to maintain their trust.  Here are five steps to securing a client’s trust in your and your services.

1. Remember that honesty really is the best policy.

If your client ever catches you in a lie, or what they perceive as a lie, you have lost their trust forever.  It doesn’t matter how small or big the lie may be. Nothing erodes trust more quickly than dishonesty.  As you interact with clients, you must practice the utmost integrity; it will leave a lasting impression that will secure their loyalty in your services as well.

2. Practice good listening.

Consider how you feel when someone gives you their undivided attention while you’re talking. You feel respected and valued.  As you show empathy and listen to your clients, you’ll demonstrate a genuine interest in their needs which in turn helps build trust.

3. Practice open communication.

When you practice open communication, you are really demonstrating an unwillingness to withhold information from your clients.  In so doing, your business practices become transparent, a quality that reveals your honorable nature.

4. Follow through.

There are some business owners who will make all sorts of promises, believing that promises alone will win customers.  Unfortunately, customers soon lose interest in a company that doesn’t follow-through.  If you tell a client you will do something, you are bound to do it.  Otherwise trust is lost.

5. Don’t gossip.

Clients will watch everything you do and make character judgments based on what they observe.  People with integrity do not gossip.  If your clients catch you speaking ill of someone else, they’ll begin to wonder how long it will take before you start gossiping about them.

When you build a trustworthy business, you earn a level of success you can really feel good about.  Not only that, but in doing so you build relationships with clients that are based upon loyalty and respect.  And that will enable you to retain clients more than anything else you may offer.

In January of last year, the IRS released an article providing tips for tax payers looking for tax preparers.  If you’ve considered adding tax preparation to your service offerings, it’s important to know what the Internal Revenue Service recommends individuals look for when selecting a professional tax preparer:

• Find out what the service fees are before the return is prepared. Avoid preparers who base their fee on a percentage of the amount of your refund or who claim they can obtain larger refunds than other preparers.
• Only use a tax professional that signs your tax return and provides you with a copy for your records.
• Avoid tax preparers that ask you to sign a blank tax form.
• Choose a tax preparer that will be around to answer questions after the return has been filed.
• Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?
• Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the preparer belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.
• Determine if the preparer’s credentials meet your needs.  Does your state have licensing or registration requirements for paid preparers?  Is he or she an Enrolled Agent, Certified Public Accountant, or Attorney?  If so, the preparer can represent taxpayers before the IRS on all matters – including audits, collections, and appeals.   Other return preparers can represent taxpayers only in audits regarding a return signed as a preparer.
• Before you sign your tax return, review it and ask questions.

Enroll in UAC’s Professional Tax Preparer (PTP) Program for the Proper Training

Universal’s tax training can help you become a qualified and designated Professional Tax Preparer.  You’ll acquire expertise that clients appreciate while increasing your bottom line, especially during tax season.  Don’t wait to advance your career by enhancing your service offerings.  Enroll now in the Professional Tax Preparer Program.

Resource

IRS.  “Tips for Choosing a Tax Preparer.” 13 January 2009  IRS.gov

According to Shwiff, Levy & Polo, a CPA firm in San Francisco, “Small business owners often do not realize their tax preparers, unlicensed and licensed, may be putting them at risk.  Both may give no advice-or even worse, incorrect advice-about complex tax laws, and only input numbers the owner provides into a tax preparation software program.  The small business owner in effect serves as their own tax advisor, while still paying the tax preparer for tax counsel.”

In concern, this firm issued five tips, which were published on WebCPA, to help small business owners avoid an audit. Here we review these tips in order to enable you better serve your clients by helping them avoid an IRS audit of their own.

1. Encourage your client to use accounting software to track their finances.

If you’re doing this for them, then they’re in good shape.  If you’re not, it’s important that you strongly recommend that they use this software to consistently input all financial transactions.

2. Verify that the tax preparer is licensed.

While legislation to regulate paid tax preparers is pending, currently unlicensed tax preparers are not required by law to have any tax training, or even a high school diploma, for that matter.  Scwiff, Levy & Polo recommends that clients use licensed tax preparers.  At Universal Accounting, we would suggest securing one that has received the Professional Tax Preparer designation.

3. Submit a list of questions.

The tax firm recommends that small business owners, “Submit [to their tax preparer] a list of questions to get the additional missing information and prove that review and analysis is being conducted.”

4. Secure proper documentation.

Have your clients require tax preparers to validate large deductions by securing the necessary documents from banks and brokerages.  This would be valuable documentation that could work to their benefit in the event of an audit.

5. Update the financial database.

After the tax return has been prepared, you client must require the tax preparer to provide a list of the adjusting journal entries so they can be added to the business owner’s financial database.

When you act as an accountant and financial advisor to your clients, you’ll find your value increases significantly when you can help them avoid an IRS audit.  In fact, it would help both you and your client tremendously if you received the proper training to become a tax preparer yourself!  That’s why we’ve added one final step to this already helpful list:

6. Enroll in the Professional Tax Preparer program.

Your practice will become even more appealing when you add tax preparation services to your menu.  Not only that but many tax preparers make more money in the months leading up to the April 15 tax deadline than others make all year long! Since all individuals and businesses, small or large, are required to file taxes, tax preparation is a respected skill that will always be in demand. And many of your current and prospective clients would probably be happy to have you file their taxes as well as perform the standard accounting services you currently provide.

Also consider who your clients will trust to file their taxes.  Countless individuals are scammed each year by people who claim to know what they’re doing.  More and more are becoming weary of tax preparers without any credentials.  The Tax Preparer Designation, mentioned previously, will put many of those individuals at ease, assuring them that you have been properly trained in tax preparation.

Make a New Year’s resolution to acquire the expertise necessary to become a Professional Tax Preparer.  UAC’s Professional Tax Preparer (PTP) program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), it will also provide you with the following:

• 20 hours of valuable video instruction
• 2 instructional manuals
• Step-by-step instruction in becoming a sole practitioner
• One year of follow-up support from expert tax preparers
• The opportunity to earn valuable professional certification
• Our iron-clad, risk-free guarantee

Increasing your service offerings could make you the premier financial provider in your area.  Enroll in the Professional Tax Preparer Program today, and improve your competitive advantage while securing your business standing in the local community.

Resource

“Tips for Small Businesses on Avoiding an IRS Audit.” 11 November 2009  WebCPA

The worth of a book is to be measured by what you can carry away from it. - James Bryce

Books are the quietest and most constant of friends; they are the most accessible and wisest of counselors, and the most patient of teachers. -Charles W. Eliot

The man who does not read good books has no advantage over the man who can’t read them.  – Mark Twain

What better way to start a New Year than with a good book designed to help improve your business, your career and your future?  Here is a list of popular publications from which you can select your next read.

Driven: Business Strategy, Human Actions, and the Creation of Wealth by Joel Litman and Mark Frigo (Strategy and Execution , January 2008)

This book is based upon a 10-year research project on thousands of businesses that have succeeded, failed and maintained mediocrity.  Driven examines how a business’s plans and actions determine it trajectory and introduces the Return Driven Strategy as a “framework for business analysis and planning prioritization.”  This book contains helpful case studies and practical advice in evaluating critical business decisions.

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Maugorgne (Harvard Business Press, February 2005)

Using the metaphor of an expanding and competitor-free blue ocean, this book examines how some businesses ensure their success by avoiding “red oceans” which have been thoroughly explored and are rife with competition.  Blue Ocean Strategy encourages innovation while focusing on creating and capturing new demand rather than competing for an existing market share.  This book includes examples from Southwest Airlines, Cirque du Soleil, Curves, and Starbucks.

The E-Myth Revisited: Why Most Small-Businesses Don’t Work and What to Do About It by Michael Gerber (HarperCollins, March 1995)

While this book may have been written 15 years ago, its continued status as a best-seller is an indication of its value to small business owners everywhere.  The author himself explains, “If you own a small business, or if you want to own a small business, this book was written for you.”  Gerber dispels startup myths and misconceptions.  He also walks readers through the different stages of business developments and makes the distinction between working on your business and working in your business.  Some claim the principles discussed in this book have already qualified it as a classic and must-read for all entrepreneurs.

Good to Great: Why Some Companies Make the Leap…and Others Don’t by Jim Collins (HarperBusiness, October 2001)

A prequel to Collins’ bestseller Built to Last, Good to Great is based on research of 1,435 companies to determine what characteristics successful companies share.  That list is narrowed down to 11 businesses that made substantial performance improvements over the course of time, including Fannie Mae, Gillette, Walgreens and Wells Fargo.

In the Black: Nine Principles to Make Your Business Profitable, by Allen Bostrom (Universal Accounting Center, 2005)

Designed specifically for the small business, this book contains 9 practical principles that will enable you to improve your business’s profitability.  And you don’t have to wait to complete the book before you can start applying them.  Working from personal experience and the experience of his father, President and CEO of Universal Accounting Center, Allen Bostrom, shares tips proven in countless businesses just like your own.  If you would like to run a more synchronized practice where all three business functions (accounting, marketing, and production) work together, this is the book for you.  See why In the Black has become a bestseller on Japan’s amazon.com.  Order your copy today!

The thought of making sales calls can make even the most seasoned accountant cringe.  But the truth is, when you manage a small accounting practice, you’re going to have to call contacts in order to secure new clients; it’s just a matter of whether or not those calls are successful.  Your approach can mean the difference between a positive experience and an abysmal one.  Here are 8 tips that will help:

1.    Schedule time for cold calls. Tamara Monosoff, in her article on WomenEntrepreneur.com, suggests setting aside approximately 2 hours for cold calls.  She believes it takes time to establish a rhythm, and mornings and evenings can be more productive than afternoons.  Consider scheduling such a block of time for cold calls every week.

2.    Smile while you dial. You’d be surprised at how smiling changes the tone of your voice, making it much more appealing and pleasant.

3.    Listen attentively. Never double-book your sales calls, meaning, you shouldn’t multitask while talking to prospective clients.  It’s important that you be attentive.  You’d be surprised at how much you can learn about a prospect’s needs when you practice active listening.

4.    Consider using a script.  If you find that sales calls are unnerving, you should create a general script to follow.  That would prevent you from allowing your nerves to lead you away from your objective.

5.    Sell the meeting, not the service. Not many people like sales calls; they will anticipate your call to action before you even say it.  Therefore, it might be more productive if the objective of your sales call was to determine which of your services a particular prospect most needs and then schedule a face-to-face meeting at which time you can best present your services as the perfect match for their unique needs.

6.    Make more calls. Statistically speaking, the more calls you make, the more likely you are to secure additional clients.  This is why we suggest routinely calling contacts and referrals every week in order to grow your clientele.

7.    Use the power of the pause. According to the American Press Institute, pausing can perfect your sales performance.  In an article entitled “Tips for Telephone Sales,” they explain, “Learn how to pause for effect.  …Pausing keeps things natural and allows you to breathe properly; thereby helping you relax.”

8.    End the call. Once you’ve achieved your objective, it might be tempting to engage in small talk for a bit.  Don’t do it.  End the call by saying something to the effect of, “Thank you.  I will see you at noon on Thursday.”

Often all it takes to complete successful sales calls is to follow a few standard tips.  By exercising the above techniques, after time you will find that your clientele will grow and become more profitable as a result.

Take the Universal Tour

It’s important for every career-minded professional to know what their options are and how they might achieve true success.  If you’ve been wondering what steps you might take to reach your goals, visit Universal Accounting Center and take our tour to see how we can help.  From gaining professional certification to providing valuable training, Universal Accounting Center is interested in helping you succeed.   Visit UAC today!

Resources

Monosoff, Tamara.  “10 Telephone Sales Tactics that Work.” 9 September 2009  WomenEntrepreneur.com

–“Tips for Telephone Sales.” 1 April 2002  American Press Institute