As I write this article, I am interrupted by a new client facing audit on a 1997 return. This client is a prime example of what happens when his preparer does not use a checklist to review completed returns. On page 1 of the 1040, the last name is completely wrong and the two dependents are missing. I will have to see what other surprises this return holds.

A word of advice: Aside from all the other information provided below, remember one thing always: Make sure that your clients' names are correct!

Whatever else you do right, however much money you save them, if you cannot get their names right they will take it personally.

Moving on … to dramatically improve your practice, increase your profits and reduce your chances of preparer penalties, use some solid organizational tools. One tool is the checklist. Using these checklists will help you avoid common errors - and keep your professional liability insurance rates down.

Let's face it, trying to remember the minutiae of the evolving tax code is tough enough - but to also track the myriad details of tax preparation, assembly and client relations is asking too much from our poor, fried brains. Even trying to list all the different things we do everyday is a gargantuan task.

Frankly, I cannot remember everything, so I've left you extra lines in each category to add your own items. But, I've made an attempt to focus on issues that Eas, CPAs and attorneys often call me about, wishing they had not overlooked them. You may not end up using all these checklists, but you will find some of invaluable. #1 - To Start Tax Season:
1. Do you have all applicable software (updated) that you ordered or should have ordered? How often does a client brings you some quick little task? You agree to do it for peanuts. Then you realize - oops, I forgot to get that piece of software. Waste time calling other Tax Pros trying to track down someone who can lend it to you today until your order comes in.

(Enter your software brand of choice.)

____ a) Tax Preparation - individual ___, partnership___, Corp (all)___, Trust ____, Estate____
____ b) Organizers ___(conversion from old program, if needed) ____
____ c) Electronic Filing/RAL/PERC
____ d) Payroll Taxes
____ e) W-2/1099 filing (Can they do magnetic media?)
____ f) Sales Taxes
____ g) Accounting or Bookkeeping
____ h) Research
____ i) Forms and misc. Software
____ j) Client contact/Billing
____ k) Tax Planning Tools
____ l) Word Processing
____ m) Spreadsheets
____ n) Internet Browser and ISP
____ o)______________________________________
____ p)______________________________________
____ q)______________________________________

Running short when you're in a hurry not only costs time, it costs money. Ordering things at the last minute, you often pay extra for rush charges, overnight delivery, or simply by losing early-bird or volume discounts. Look at last year's supply bills and see what quantities you consumed. (Right now, I seem to be sucking up a case of paper each week! Thank goodness for free overnight delivery from Quill and Office Depot.)

If you haven't done it yet, look through AccountingNet.com and office supply catalogs that cater to Tax Pros. You're likely to find some excellent client contact tools. The sharper your presentation => the better impression you make => the more you can charge. Elegant packaging can make even a small, work-at-home, part-time preparer look first rate.

#2 - Have You Ordered All Your Printed Supplies?
____ a) Tax Return presentation folders
____ b) Envelopes (or address stamps or labels)
____ i) Filing Envelopes (preprinted or address stamps or preprinted labels)

Note: for about $9-$15 each, you can print rolls of 500 labels - order a set for each of the taxing agency addresses - and stick the label on blank filing/payment envelopes. Then you never have the wrong quantity of pre-printed envelopes. Have a batch printed with your return address and place them on envelopes attached to your invoice. The payments come back faster that way. Add a stamp - there's no excuse not to send your check out.

____ ii) W-2/1099 Envelopes
____ iii) ES payment envelopes
____ iv) Client mailing Envelopes
____ v) Stationery
____ c) Appointment Postcards (use to pre-schedule appointments or as
appointment reminders)
____ d) Thank you cards (for referrals, etc.)
____ e) Client Newsletter (if buying pre-written w/customized logos) (Try to get email addresses instead - it's cheaper to do a newsletter online - no postage, paper costs or folding and stamping time. )
____ f) Client promo items (printed calendars , logs, pens, etc.)
____ g) "What is an EA?" or CPA or Tax Attorney pamphlet
____ h) Industry specific deductions pamphlets (entertainment, real estate, etc.)
____ i) Tax Season Banners (electronic filing avail, etc.)
____ j) Checks
____ k) ______________________________________
____ l) ______________________________________
____ n) ______________________________________
____ o) ______________________________________

These are just a few of the things to start organizing. There are still many details requiring attention. For this profession, we've really got to have a head for details!

Next month, I'll give you some more checklists to help make the coming tax season lucrative, bearable and fun.
Start Getting Ready for Tax Season Now (Part Two)

Eva Rosenberg, MBA, (aka “TaxMama”) is an Enrolled Agent in Encino, California. She is a sought-after Columnist and Speaker on tax, small business issues, and Internet Businesses. Her practice focuses on small business, non-filers, and problem tax audits.

Rosenberg is also the creator of The Internet's HelpDesk & WebReview and the publisher of a free e-zine, I-Laugh about using humor in the workplace.

© Copyright Eva Rosenberg, August 2001-2005. All Rights Reserved.