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IntroductionTwo CPAs with 15 years + publicaccounting experienceStarted company in 2012 thathelped tax pros scale theirpractices by providing key dataentry servicesIn 2016 launched SaaS basedtax workpaper app (regroupTAX)designed to increase efficiencyand workflow procedures
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AGENDATypes of Workpapers: Ind. vs. Bus.
6 Principals of Good Workpaper Techniques
Other Tips/Tricks to Maximize Efficiency
Questions
Short Demo
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S T A N D A R D I Z E DF O R M S
basic set of low-levelfunctions can be completedfor each return and everyworkpaper file looks thesame
V A R I O U S F / SF O R M A T S
different formats makes itdifficult to shift tasks andeffectively create aworkpaper file that'sconsistent across the board
INDIVIDUAL vs BUSINESS
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Average tax preparation fee for
a typical individual return
(1040)
Average tax preparation fee for
a typical business return
(1120, 1120S, 1065)
$273 $743
Business returns = more room for profit
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1. DEVELOP INTERNPROGRAM
2. OUTSOURCE DATAENTRY
3. UTILIZE TECHNOLOGY
COMMONGOAL:
Shift low-level tasks to interns;let them scan, organize andinput info
Onshore and offshoreoutsource options;GruntWorx, SurePrep, etc.
Most tax software offer anOCR add-on that will scan andpopulate; ProSystem fx Scan,etc.
Eliminate data entry and createconsistent workpapers at asignificantly low price
INDIVIDUAL TAX RETURNS
increase workflow efficiency
ways to increase efficiency
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A C C O R D I N G T O
I N T U I T , E A C H
B U S I N E S S R E T U R N
T A K E S 5 . 1 H O U R S
O F D A T A E N T R Y
5.1hours
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BUSINESS TAX RETURNSways to increase efficiency
GOODWORKPAPERS!
Requiring extensive, organized and indexed working papers or PDF files may take about 20 minutesper return but can reduce the time it takes the preparer to actually work on the return by
approximately 50 minutes, and reduce the reviewer time by about a half-hour, resulting in a net gainof one hour per return. For a workload of 400 returns, this can save the equivalent of one fulltime
person during tax season.10
BE CONSISTENTP R I N C I P A L # 1
Design a set of techniques that work for you and your firm
and stick to them.
11W W W . R E G R O U P T A X . C O M
SAVE A COPYP R I N C I P A L # 2
Before you even think about making adjustments to the
financials, save a copy of the Balance Sheet and Income
Statement as received from the client or their bookkeeper
"PBC"
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DESIGN AN INDEXP R I N C I P A L # 3
Designing an index system along with a set of workpapers
required for every return allows you to standardize the prep
process and eventually delegate low level work to staff
and/or interns.
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AJES ONLY!!!P R I N C I P A L # 4
If you go into the QB or Xero file and start changing
transactions, you are going to lose your trail and create an
extremely frustrating situation for yourself. By recording
everything as an adjusting entry, you create a nice trail and
give yourself the opportunity to present the changes to your
client, an auditor, a partner at the firm, etc.
15W W W . R E G R O U P T A X . C O M
TOP 3 CHECKLISTP R I N C I P A L # 5
Come up with the first 3 steps you take on every return.
Need some suggestions??
16W W W . R E G R O U P T A X . C O M
CHECK .CHECK .CHECK .
does retained earnings match prior year return?
are the financials complete through year-end?
does the balance sheet tie to the income statement?
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LEVERAGE TECHP R I N C I P A L # 6
There are plenty of software programs designed to reduce
inefficiencies. Each has it's pros and cons.
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Leveraging Technology toEnhance Client Service
THE PCPS CPA FIRMTOP ISSUES SURVEY
2 0 1 1 - 2 0 1 5
Top 10 Issue:
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OTHER TRICKS...Prior year file
Book-to-tax reconciliation
Fixed asset detail
Referencing
State tax detail + estimated payment schedule
Tax-related questions
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PY FILEMake it a habit to quickly review the prior year file before you
begin tax prep for the current year. This will give you a
roadmap of what's going on with the client.
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BOOK-TO-TAXPaint a clear picture of how you moved from the book
financials to the tax return. Use this reconciliation to explain
the tax return to your clients.
22W W W . R E G R O U P T A X . C O M
FIXED ASSETSTie out the depreciation schedule to the assets on the books.
Make sure your client confirms any assets that are no longer
in use or have been disposed of.
23W W W . R E G R O U P T A X . C O M
REFERENCEReference determinations you made on the tax return. We
recommend to To/From system.
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STATE TAX + EST.Avoid future notices by confirming the state taxes and
estimated taxes paid during the year.
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TAX RELATED ?'S
W W W . R E G R O U P T A X . C O M
Brainstorm with your staff before tax season to compile a list
of taxrelated questions to ask every client.
Think new credits, etc.
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CREATE YOUR OWNWORKBOOKS
Use the off season tocreate an excel workbook
and setup each client'sfinancials + formulas.
EMBEDDED ORENGAGEMENT
Most tax software offerembedded functions and
addt'l engagement softwarefor purchase.
TAX WORKPAPER APPS
Apps that are designedspecifically to create tax
workpapers allow for flexibilityin acctg/tax software choices.
Recommendationsfor consistent workpapers
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PROS CONS
Excel Workbook
-Low Cost
-Minimal Training
-Customize Reports
-Significant Setup Time
-Human Error
-Manual Upkeep
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PROS CONS
Embedded Functions
-Integrates w/ TaxSoftware
-Minimal Data Entry
-Familiarity
-Lack of Updates &Maintenance
-Inconsistent Output
-Future Conversions
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PROS CONS
Engagement Software
-Integrates w/ TaxSoftware
-Minimal Data Entry
-Familiarity
-High Cost; Difficult toImplement Firm-Wide
-Designed for Audit
-Future Conversions
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PROS CONS
Tax Workpaper Apps
-Software Neutral(Acctg + Tax)
-Implement Firm-Wide; Consistentcy
-Low Cost
-No Direct Integrationsw/ Tax Software
-Web-Based: Pro orCon?
-Breakeven
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UTILIZE TECHNOLOGYCONC L U S I ON . . .
82% of top 100 accounting firms tie new tech toclient retention and firm growth
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T H E B E N E F I T S
WWW . R E G R O U P T A X . C O M
"The value of technology is best seen in its ability to automate routine orotherwise manual processes. What does this mean in practical and beneficialterms for your firm and clients? The consulting firm McKinsey anticipates thatautomating work processes that used to be done by human labor will allow moremeaningful work as routine or repetitive tasks are replaced."
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Automating or even eliminating mundane or routine taskslike manual data entry with computers or software programs
frees up employees’ time to actually use their brains forthings that computers or software programs can’t do, like
utilizing their creativity.
• • •
N I C K L O W E N S T E I N ,
D I R E C T O R I N S A G E W O R K S ’ A C C O U N T I N G D I V I S I O N
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