the future tax practice

Think, Plan, Grow! ™

Sandra WileyShareholder

Boomer Consulting, Inc.

Think, Plan, Grow!™

1. 1-52. 6-253. 26-754. 76 – 1505. >150


1. Owner/Partner2. Manager3. Staff 4. Administrative5. Other


• Introduction• It Starts With Technology• Impact Factors• Planning• It Ends With Technology• Change – Vision - Leadership


Maintain Confidence


SelfRelationship

OrganizationalMarket

Societal


From The Speed of Trust by Stephen M. R. Covey


=


Low Trust =


High Trust =

=



Efficient Effective Improving Cutting Copying Different Impossible

Management Leadership

1 2 3 4 5 6 7

The 7 Levels of Change


Personal tax Business tax Estate tax Time & billing - AR Trial Balance - Work

Papers Write-Up Document/Content

Management General ledger – AP Payroll Accounting

Research

QuickBooks Learning Mgmt.

System Depreciation Email – Exchange Word – Excel –

PowerPoint Project management Tax Planning Website – Intranet Tax planning Tax research SharePoint - Portals

Most firms have a minimum of 15 applications.


1. 10 or less2. 11 to 153. 16-204. Over 20


• Firm decision making process• Lack of partner knowledge/involvement• Lack of an IT Leader• Department versus a firm approach• The vendors• The IT Industry

– Hardware– Software

• Lack of plans– Strategic– IT


Applications Connections – FeedsWithout Middlewareor Web Services

Connections – FeedsWith Middlewareor Web Services

1 None None

2 2 2

3 6 6

4 12 8

5 20 10

6 30 12

7 42 14

8 56 16

9 72 18

10 90 20

15 210 30


Middleware is computer software that connects software components or applications.

Web service is defined by the W3C as "a software system designed to support interoperable machine-to-machine interaction over a network"

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Software_components

http://en.wikipedia.org/wiki/W3C

http://en.wikipedia.org/wiki/Interoperability

http://en.wikipedia.org/wiki/Machine_to_Machine


Type Characteristics Comments

Vertical Silos - Departments Cheap and quick – little planning

Star Spaghetti - Growth Complex & expensive – Requires planning & technical skills

Horizontal Enterprise BUS - Serious

Middleware – Requires governance, planning, business analysis


One-way

Static

Relatively easy


• Simplify• Leverage processes• Train• Eliminate “Wizards”


The end user is unreasonably committed to keeping the old

system even though it offers low productivity to the rest of the employees, particularly non-

wizards. This applies to paper based systems as well as digital.Requires change management.

Boiling the IT Frog by Harwell Thrasher


• Increase perception and trust• IT people & doctors

– The similarities– The differences

Boiling the IT Frog by Harwell Thrasher


• Clear and consistent objectives• Use simple terms• Disclose risks early• Provide strategies to minimize

risks• Under promise – over deliver• Focus on results and process

changes – not the technology


Are like sailing a ship without a destination

Expensive in the long-term

Strategy starts with business objectives -multiple levels of strategy


1. Yes2. No


• Virtualization• Printing• Get Digital• Software licensing• Email Management• Document – improve processes• Training

Allocati

on

of

Learn

ing

H

ou

rsA

llocati

on

of

Learn

ing

H

ou

rs

Technical/UpdatesTechnical/Updates

Cultural/Orientation

Cultural/Orientation

Core Technical Training

Core Technical Training

Personal/Self DevelopmentPersonal/Self Development

Role/Position TrainingRole/Position Training

Leadership DevelopmentLeadership

Development

On

goin

g D

evelo

pm

en

tO

ng

oin

g D

evelo

pm

en

t

Client Service/Practice Development

Client Service/Practice Development

People DevelopmentPeople Development

Source: Plante & Moran LLP

Entry Retirement


1. Yes 91%2. No 9%

9%

91%

Yes No


1. Lack of efficient processes.

2. Lack of the “right people” – skills.

3. Too many clients that don’t fit our client profile.

4. Poor technology.5. Other

42%38%

4%2%

13%


1. Yes2. No

Yes N

o

27%

73%


1. Regulation/law changes

2. Technology3. Competition - fee

pressures4. Lack of trained

people5. Other

Regulation/la

w...

Tech

nology

Competition - ...

Lack

of traine...

Oth

er

24%

7%2%

22%

44%


1. Up front2. At the end of

the process.3. We don’t scan –

still use paper.

Up fr

ont

At the end of ..

.

We don’t s

can ...

67%

4%

29%


1. Yes2. No

Yes N

o

33%

67%


1. Yes2. No3. What is it?

Yes N

o

What is

it?

53%

23%23%


1. Yes2. No3. We will for the

first time this coming year.

Yes N

o

We w

ill for t

h...

41%

7%

52%


1. Yes, the majority of the time.

2. No, we bill monthly.

3. No we use fixed price agreements.

21%

2%

77%


1. Yes2. No

Yes N

o

88%

12%


1. Yes2. No3. To limited

users

53%

9%

37%


1. Yes2. No

74%

26%

Yes No

See Resource Page


Receive client information

Prepare for scanning

Scan client information

Quality control check (scan)

Prepare Pro-Forma return from

prior year

Assign to preparer

Complete?

Review for completeness

Request further info from client

Receive client information

Prepare return

Assign to reviewer

Review

Complete?

Assign to administration

Prepare for electronic filing

Electronic filing

Prepare for client

Print to PDF

Burn to CD

Assemble for delivery

Prepare for storage

File PDF copy of tax return

Bookmark and Index PDF

Link and file PDF of support materials

Link and file PDF of workpapers

Return to preparer

Corrections by preparer

Print workpapers to PDF

Lock return in tax application

Sample 1040 Tax Workflow

Utilizing paperless review and preparation

No

Yes

No

Yes


• Too many touches• Acquisition & organizing client data requires

time and touches• Loops in the process• Printing vs. onscreen• Applications rather than systems• Print/scan???• Workpaper containers vs. doc management

systems• Delivery methods are inefficient• Use of email


1. Yes2. No


1. More preparers will work out of the office in the future

2. More firms will share resources (staff) among offices?


• Planning opportunities memo• Multiple or split monitors• Degree of difficulty• Barcoding• Standard organization of files• Use of OCR (GruntWorxs-AutoFlow-

SurePrep)• Workflow software (TaxFlow & XCM)• Scheduling• Billing/collecting with return• Portals• Billing for 2009 1040s in 2009


• Grading each return• One-way workflow• Training

– Basic/annual updates– Just-in-time

• Improved management– Clients (getting information timely)– Staffing (revenue per FTE)– Scheduling– Workflow– Revenue/cash flow– Sales


• Objectives• Measurements of success• Initiatives • Due Dates• Responsible party (ies)


• Grow tax revenues by 15% per year.

• Develop and implement strategies to improve the profitability of the tax department.

• Improve processes in order to reduce turn-around time.

• Leverage technology in order to become more efficient.

• Implement a firm learn/training program in order to hire and retain quality personnel.


• Revenue per FTE• Comparison with peer metrics• Elimination of paper• Client satisfaction survey results• Employer of choice• Growth in revenue from existing

clients• Growth in revenue from new

clients


…it starts at the top


• Leadership• Management• Compliance with firm standards,

policies & procedures


1. Tie partner compensation to the strategic plan.2. Utilize a CVO (Chief Value Officer) and pricing committee.3. Utilize contracts rather than engagement letters - with

money upfront and scheduled payments. Provide for and use change orders.

4. Stop work on projects where non-payment is over 45 days.5. Have a D.O.S. conversation with clients. Listen.6. Provide a training/learning culture for partners & employees.

(Per Gartner, you gain 5 hours of capacity for each 1 hour of training.)

7. Technology - implement, leverage and train. Get digital.8. Retain quality… “cull the herd” at all levels including

partners.9. Let managers manage. Provide authority with responsibility.10. Communicate with partners, staff and clients.


• Yes• No


Security Regulation Resources

http://www.ncsl.org/IssuesResearch/TelecommunicationsInformationTechnology/SecurityBreachNotificationLaws/tabid/13489/Default.aspx

http://www.perkinscoie.com/news/pubs_detail.aspx?publication=26596137-b74f-4b68-8063-93f996f233e9


[email protected]

the future tax practice

Documents