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.

Offer from QuickBooks

QuickBooks is offering a free copy of QuickBooks Pro 2009 (a $199.95 value) with the purchase of QuickBooks Enhanced Payroll (cost=$349).  If you do your payroll in-house, you might want to consider this.  Or, receive a free copy of QuickBooks Premier 2009 (a $399.95 value) if you sign up for QuickBooks Assisted Payroll (cost=$720).

With Enhanced Payroll, you generate your paychecks in-house, but QuickBooks performs all the payroll calculations and creates the payroll reports for you.  All you have to do is print them.  It also calculates your tax deposit amounts. 

Assisted Payroll is similar to using an outsourced payroll service such as ADP or Paychex, but as I understand it, at a significantly lower cost.  With Assisted Payroll, you still generate the paychecks in-house, but QuickBooks will transmit the tax deposits and file the payroll reports for you.  

This offer is good until March 16!!  Click here to learn more and take advantage of the offer.

Paying Income Tax is Voluntary?

Harry Reid says that it is....

Pimp My Taxes

This guy should have paid attention to what happened to Al Capone:  It isn't illegal activity that will necessarily get you caught, but hiding the INCOME on that illegal activity from the IRS.  He is learning a lesson that income and gains from whatever source derived must be reported.

Maybe it was just an "honest mistake".  Tax evasion i.e. "honest mistakes" seem to be a hot issue right now.  I don't think there is much of a difference between a politician and a crook anymore.  Geitner and Daschle anyone?