Losing Clients

[Black Bart]

My attrition rate is terrible this year -- the clients are dropping like flies. Between death, retirement, lowered income ceilings for filers, TurboTax, FreeFile, and Block givin' away returns for 30 days or so, I wouldn't be surprised if I don't drop fifty to a hundred guys this year.

Everybody and their brother has a computer now (especially the younger set) and the former easy-money "gravy" short forms are disappearing fast (going online I think). I've got enough old, staid, solid types to handle it so far but they're getting gray and close to pasture-status. Anyway the quick-money short jobs were the icing on the cake, but they're melting away and there's not so much spare change around here as before.

Anybody else?

[zeros]

Difficult To Tell

Kind of difficult to tell if I have lost any clients at this point. Will show up at the end of the year. I have been losing about a net 10 each year in the last two years. Turbo Tax might be taking some of the business and like you say, everybody can file online with their computers. I think I am about the same as last year right now.

[erchess]

Hard to tell here

because my business is always slow until late Feb. My effective regular filing season is 2/20 to 4/15 and I also have right many extensions including people who for one reason or another didn't come to me until after 4/15. These people may or may not have filed extensions with or without payments. Word is pretty much around in my area that there's no penalty for late filing if you are due a refund.

Then too half of my time even during filing season goes to audit work, cleaning up messes people have made for themselves or with assistance of professionals with whom the clients are disgruntled or who don't do audit assistance.

[taxxcpa]

Losing clients

In the past I've lost clients mainly from relocating my office several times to three different cities, but now this year I've getting more new clients than usual.

[Corduroy Frog]

Hard to Say

Bart, I felt a loss every year, maybe not in total numbers, but in hordes of computer-types and young people going to Turbo-Tax, "Free" Tax, instant-refund stores, etc. Same reasons you mention.

Suddenly two years ago, I started getting refugees from Turbo-Tax. 2-3 people who had grossly overpaid their taxes because TurboTax made them think they knew everything. A couple of engineers, who (as you know) ALREADY think they know everything. These 2-3 recommended others of their ilk, the numbers grew to 12-15, then 20-25, and is still growing. I'm doing 25% more returns than a couple years ago.

These are not lower-income folks, EZ returns, or short forms. But I do think the lustre of DIY is becoming known for the travesty it is, and there is a market for such refugees if we can tap into it.

[geekgirldany]

I don't know yet if I have really lost clients. I know things started out very slow this year. Even slower than last year. I really got busy last week which I was happy to see.

I know alot of folks are using TT and other products to file their returns. Just about every client I've talked to has said either family or friends have told them they should just do their returns online... they do. All my clients say they tell them they would rather have a professional prepare their return. One told me that if all they had was W-2s they would do their own taxes. So W-2 only returns might be slowly going away especially with younger folks.

So as Snag said we will probably be seeing some TT people later on with problems. I saw a commercial on tv today where the taxpayer can take a picture of their W-2 and it will automatically be entered in TT. I know our professional programs can scan in W-2s and get info off of them but I just hope those self preparers double check all the info.

[kpangelinan]

Too early to tell....

My attrition rate is terrible this year -- the clients are dropping like flies. Between death, retirement, lowered income ceilings for filers, TurboTax, FreeFile, and Block givin' away returns for 30 days or so, I wouldn't be surprised if I don't drop fifty to a hundred guys this year.

Everybody and their brother has a computer now (especially the younger set) and the former easy-money "gravy" short forms are disappearing fast (going online I think). I've got enough old, staid, solid types to handle it so far but they're getting gray and close to pasture-status. Anyway the quick-money short jobs were the icing on the cake, but they're melting away and there's not so much spare change around here as before.

Anybody else?

Like most people, I think it's too early to tell....we've had the busiest Feb in over 10 years, but my clientele aren't the basic returns....65-75% of my clients are sole props and corporations, so turbo tax won't help them much when it comes to basis, depreciation, and such. I checked my clientele list thus far this year, wondering if maybe my clients are just coming in early as I usually prepare 70-100+ extensions, but we've experienced 30% of our Feb clients as new customers. I'm wondering how March and April will stack up, which like someone else mentioned, is my busiest time of the year.

[Peachie]

I have not yet.

In fact, my dollars are double same time last year. Now, having said that, I don't know what will happen later as these are not new clients, they are repeats. I still have eight weeks to go. I'll let you know April 19.

Peachie

[ChEAr$]

Just remember that IRS couldn't accept schedule a returns till Feb 14th, and publicized it well, so that many people, yes, even some of our clients, got the idea they couldn't even file till after that date.

I predict a resurgence of client activity from now till April 15th.

[taxmandan]

Last year was the first time we had a net loss of clients from the previous year. And income was down about 7% from 2009. Getting very few simple returns now, and the number of new Sch C, E & F's isn't making up the difference in $$. But, this year have had 4 clients who left several years ago suddenly call out of the blue and ask for appointments. Whatever they did during those intervening years didn't appeal to them anymore and they came back. They all acted like we're old friends and no reason given for disappearing all that time. I suspect they tried the box and got correction letters from theIRS, lesson learned.

[DixieEA]

same here

Black Bart, it is the same with me, I have been doing returns 30 plus yrs and I dont
get to many 1040As anymore. Everything I do now involvess more thought and work
and seems to get worse each yr. Also, I lose 5-8 returns a yr due to death.


Dixie EA

[kpangelinan]

Black Bart, it is the same with me, I have been doing returns 30 plus yrs and I dont
get to many 1040As anymore. Everything I do now involvess more thought and work
and seems to get worse each yr. Also, I lose 5-8 returns a yr due to death.


Dixie EA

You have some old clients, eh? I get about one death a year.....then have to do their estate return and usually make more money on the estate return than I ever did on their 1040. Then when the estate is settled (I have some estates that will be open indefinitely, but most are usually 3-5 years before they're settled) then my wife takes them on as clients and invests the inheritance.

I'm sure you bill for the additional work or do you think you'd lose the business if they went elsewhere because of price?

I bill accordingly for my complicated returns that require more thought and work and haven't had a problem.

[BP.]

You have some old clients, eh?

Sadly, even the young ones pass. I've lost three already this season that I know of, and two weren't old.

Sidebar: The girlfriend of one told me she's bringing all the funeral bills she herself paid, since the undertaker told her very carefully, save all those receipts to deduct on your tax return. Have printed the relevant pp. of pub 17 for her file.

[kpangelinan]

Sadly, even the young ones pass. I've lost three already this season that I know of, and two weren't old.

Sidebar: The girlfriend of one told me she's bringing all the funeral bills she herself paid, since the undertaker told her very carefully, save all those receipts to deduct on your tax return. Have printed the relevant pp. of pub 17 for her file.

Oh yeah.....didn't think about that. sorry to hear.

[Black Bart]

Well, see,

... I get about one death a year.....then have to do their estate return and usually make more money on the estate return than I ever did on their 1040. Then...my wife takes them on as clients and invests the inheritance...I bill accordingly for my complicated returns that require more thought and work and haven't had a problem.

I guess it depends on where you're at. Up there your guys maybe check out and leave somethin' substantial -- here the average person isn't going to have an estate tax return (the noble poor, you see).

The only thing our local heirs have to worry about is (1) "Did she leave the house to me or to a dog and cat hospital?" and (2) "Is my name on the bank account?" I did one today (a 1310/not a 706) -- the dear departed left his tax refund of six hundred bucks to Sis and that's the end of the "complicated return."