Sunday, February 22, 2009

Quality Control In A Single Preparer Practice

Not long ago, I was asked by another CPA who works for a large accounting firm how I handle tax return quality control as a sole practitioner?  In his company, a partner reviews every return that he prepares.  I must admit that it is a challenge to make sure that I have accounted for everything in a tax return...there is so much that can be missed especially in the more complicated ones.  I was mentored early on by another sole practitioner CPA in the local area who has been practicing on her own successfully for probably close to 30 years.  The strategy that she uses and that I have implemented as well is this:  First, do an initial return preparation by inputing all the data into the tax software.  Then, set aside that return for several days, maybe even a full week.  Work on other tax returns or projects in the meantime.  Then, after that time has elapsed, go back to that tax return and review all the entries.  This has been effective for me because many times there are items that I did miss, or I will discover something that I need to ask the client about for further clarification.  I absolutely hate the "fast food tax preparer" mentality such as H&R Block for instance where you go in and 15 or 30 minutes later walk out with a completed tax return.  I just don't think enough time and attention is spent.  That works fine on the simplest of returns, but I just think it is dangerous on ones that are even slightly more complicated.

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