'Bring it on!' says one CPA. 'It comes too fast,' gripes another.
by Rick Telberg
At Large
With the last of the extension dates passed and gone a couple of weeks ago, tax professionals are gearing up for a 2005 filing season that figures to be one of the best, if not smoothest, of their careers.
A flurry of tax bills in recent weeks, plus the uncertainty of the implications of the quadrennial voting next week, is spicing up an otherwise smooth-running start-up phase. Lessons from last year are being recalled, new tax software is under review, new office procedures are getting a try, and temporary staff is being lined up.
In fact, about 41 percent of the CPAs I've surveyed say they are "about on schedule to be ready" for the new tax season. Another 4 percent are "totally ready to rock-n-roll!"
"Bring it on!" said the owner of one small firm.
Of course, there are always the procrastinators: 19 percent said, "I don't even want to think about it yet."
Overall, nevertheless, CPAs are eager and optimistic.
Check the stats:
-- 75% expect gains in revenue over last year.
-- 72% expect gains in profits to match.
-- 65% expect no change in the number of clients on extension.
-- 64% expect more revenue per client.
-- 61% expect more profit per client.
"People will be more confused than ever," conceded one CPA, apologetically. "Of course, that's good for our business. But it's bad for the citizen's understanding of the government's financial operations."
Still, the usual challenges loom:
-- 63% worry that clients will be late or unprepared.
-- 41% are concerned about last-minute changes by the government.
-- 36% fret about finding enough staff.
-- 29% expect technology problems.
-- 28% say learning all the new rules, regs and forms will be an issue.
-- 28%, again, worry about the overall economy's impact on their business.
-- 13% wonder how the IRS will be operating this year.
-- 8% are warily eying new competitors.
One problem that many preparers hope won't reappear this year is the late 1099's from financial institutions, which were jammed up last year by some late changes in the law.
"As tax law changes are enacted and complexities become greater, our service is much more valuable and goes much further beyond the standard tax return completion, 'see-you-in-8-months' mentality, according to one respondent. "Clients are demanding more attention during the year and we find it a profitable niche. For a small firm, we can offer that kind of attention to the clients that demand it, plus it allows us to know more and more about our client base since we spend so much time together."
Now there's a CPA who seems to know how to run a tax practice.
