Now that the end is in sight....

[sdarave]

Now that the filing season is drawing to a close and the time of extension looms, I am wondering how your season went.
Was your total revenue up or down?
Did you have fewer clients than you had in previous years?
To what do you attribute changes you may have had?

In my 12 year old business we had considerably less revenue and fewer appointments. We've been pretty stable for quite a few years, so I'm just wondering how it went for others. Thoughts??

[ATSMAN]

I just looked at my books last night and I am down roughly 12%. I expected a downturn because those std deduction easy returns are most likely self prepared this season. I will do more analysis after deadline because I do call my non returning clients to ask the reason. I am "cheap" so unless someone gave them a hell of a deal on price that should not be a factor in my opinion. I did have about 4 or 5 elderly taxpayers die in 2018 so that is a natural attrition.

[Lion]

I have more clients, more extensions, and increased prices. I may lose a few in these last weeks who do NOT want to go on extension, but I'm still up by all measures.

[kathyc2]

Pretty much even by design. I turned down the vast majority of new clients, but did consent to take some new ones on if they were referred from good clients. Looks like the ones I did take on will cover those lost through attrition. Substantially less Schedule A's but the additional stupid schedules more than make up for it on a charge per form basis.

[SHADE TREE TAX SERVICE]

We are plus or minus 1% based upon bookings at this point in time.

We raised prices this year to account for the "self prepared" returns. Funny thing is we have several (sample size 5) Turbo Tax challenges, and we did better than those who self prepared. If you factor in the cost of the Free Turbo Tax and the savings we found, we did better in all cases. Despite that, we did lose a number of clients to the "self prepared" filers. We also lost a number of elderly who died. Large number than expected. That wasn't expected in such numbers.

We did get a bit of new business that helped us balance out with the price increases to keep things even.

[ATSMAN]

"I may lose a few in these last weeks who do NOT want to go on extension, but I'm still up by all measures."

I just fired 5 clients yesterday because they refused to cooperate with me to get their tax returns completed in a timely manner. Their attitude was I am working for them as an employee because they are paying me, so they will do things when it is convenient for them and I must live with that. One fellow is coming at 9am today to pick up his files. They will get an invoice for the time I spent already but I doubt if they will pay it!

[Twin Turbo Z]

"I may lose a few in these last weeks who do NOT want to go on extension, but I'm still up by all measures."

I just fired 5 clients yesterday because they refused to cooperate with me to get their tax returns completed in a timely manner. Their attitude was I am working for them as an employee because they are paying me, so they will do things when it is convenient for them and I must live with that. One fellow is coming at 9am today to pick up his files. They will get an invoice for the time I spent already but I doubt if they will pay it!

Have a few we are going to weed out too. Those are the ones that you hate to see come through the door anyway !!

[TAXNJ]

Now that the filing season is drawing to a close and the time of extension looms, I am wondering how your season went.
Was your total revenue up or down?
Did you have fewer clients than you had in previous years?
To what do you attribute changes you may have had?

In my 12 year old business we had considerably less revenue and fewer appointments. We've been pretty stable for quite a few years, so I'm just wondering how it went for others. Thoughts??

In today’s environment, rather than the small 1040 clients, it is better to be more specialized in Estate and Inheritance tax returns and tax planning. Also, payroll and Business tax returns.
The small 1040 clients may be going the way of “self-prepared” compare to years past (unless they run into problems – then “representation” may be worthwhile if they can afford your fees.

[ATSMAN]

In today’s environment, rather than the small 1040 clients, it is better to be more specialized in Estate and Inheritance tax returns and tax planning. Also, payroll and Business tax returns.
The small 1040 clients may be going the way of “self-prepared” compare to years past (unless they run into problems – then “representation” may be worthwhile if they can afford your fees.

I agree. Except that many of these self-prepared customers can barely pay professional prep fees let alone pay representation fees that may be 10 times more. I had a taxpayer come in for initial consultation that self-prepared for many years claiming CTC and EIC that should not have been allowed. They thought they could get the IRS off their back for $100 (as advertised on TV!).

[TAXNJ]

I agree. Except that many of these self-prepared customers can barely pay professional prep fees let alone pay representation fees that may be 10 times more. I had a taxpayer come in for initial consultation that self-prepared for many years claiming CTC and EIC that should not have been allowed. They thought they could get the IRS off their back for $100 (as advertised on TV!).

that is why "

then “representation” may be worthwhile if they can afford your fees",

since the potential client needs to be screened first. Same as advertised now on TV

[kamckinley]

In today’s environment, rather than the small 1040 clients, it is better to be more specialized in Estate and Inheritance tax returns and tax planning. Also, payroll and Business tax returns.
The small 1040 clients may be going the way of “self-prepared” compare to years past (unless they run into problems – then “representation” may be worthwhile if they can afford your fees.

I think you are right, I have seen an increase in fiduciary returns the last few years and I think there is a need for tax pros who specialize in this area. I will be focusing my CEs this year on trust and estate income tax returns.

[TAXNJ]

I think you are right, I have seen an increase in fiduciary returns the last few years and I think there is a need for tax pros who specialize in this area. I will be focusing my CEs this year on trust and estate income tax returns.

You might find that specialization to be more challenging and definitely lucrative than 1040 work. Not only Federal but also state Estate and Inheritance work (NJ in 2018 discontinued the Estate tax but kept the Inheritance tax. But that could change with this new Governor to generate funding for all his programs).

Found many review courses given by Tax and Elder attorneys to be the most informative but costly but worth the cost. Good luck.

[Burke]

Would recommend any 1041 courses offered by NATP. They usually have some from time to time, and especially workshops at their conferences. They are affordable.

[SHADE TREE TAX SERVICE]

With two days to go, we are at 102% of last year revenue for end of season versus last year.

[SHADE TREE TAX SERVICE]

Season is now over.

How did you do?

We ended up about 10%. We had a lot of last minute returns. Not sure why, mostly new clients we were not expecting.