We have enjoyed helping clients, business associates, and friends in the management and growth of their businesses and their personal finances for over twenty-five years.
We look forward to working with you and we do appreciate your business. We will make every effort to provide services at a positive benefit/cost basis. We trust that you will be pleased with our performance. We welcome and encourage your referrals and will commit to providing a level of service that will ?make you look good?.
It should go without saying, but we will affirm: we maintain a very high level of confidentiality with all information that becomes a part of our relationship.
Please contact us whenever you have any questions or comments, or, if you require further information.
We are in the business of providing information and solving problems. We welcome the challenge of providing resolutions to matters of importance to you. We will utilize our expertise, our experience, and our efficiency to accomplish those objectives.
We will coordinate our knowledge and skills together with that of our clients and a network of talented experts in various fields to achieve the goals desired by our clients. We have a network of strategic partners that we utilize for maximizing expertise and minimizing costs. We talk with and work with this network of strategic partners on a daily basis for services and advice. Attorneys for estate matters, registered investment advisors for investment matters, CPA?s for audits, certified hardware and software technicians for technology matters, bookkeepers for financial recording matters, clients and business associates for general and specific advice.
Periodically we provide classes on various topics such as accounting and information systems, local and federal tax, and financial planning and investments. Hardcopy materials received in these classes are also available. We welcome suggestions for new programs. If you have a topic that you would like discussed, please let us know.
One of the dilemmas that we in the tax preparation profession encounter is the ?once a year syndrome?. Many clients consider their taxes only once a year, at ?tax time?, about mid-January to April 15th. We find this to be true for both individuals as well as businesses. For some clients this works out fine, and we welcome those clients. For most of our clients, tax, business, and financial planning is a year-round process.
For tax preparers, ?Tax season? is a late January to late March sprint. By the time tax information is sent out from employers, brokers, banks, lenders, etc., it is late January before our earliest clients come in to see us. The process of gathering tax information continues well into February for most people. As we are preparing those early returns, we experience a surge in client contact beginning mid-February. April 15th is only about two months away. In order to ?make good? on a promised delivery date of April 15th we must establish a cut-off date for accepting ?complete? tax data. That date, generally, is the 3rd week of March. As part of the tax return preparation process, there are often issues that need to be addressed and resolved. This is particularly true when businesses are involved. Considering that many clients have issues that need to be addressed, and multiplying many clients each with issues, a ?log jam? often occurs. Typically the preparer ends up filing more extensions than anticipated.
?Tax Season is organized chaos?. We try and resolve this situation by performing periodic reviews and consultations during the year covering tax, accounting, financial, investment, and business matters as they arise and/or on a scheduled basis. Our objective is to have as many issues and problems addressed and resolved as possible by year-end. The process of the tax preparation then becomes more efficient for us and economical for our client. This process allows us to prepare more returns on a timely basis, spreads our costs out over the year, and helps to avoid ?panic April 15th bombshells?.
The other major benefit to this ?year-round? concept is that by reviewing the issues during the year we can analyze the situation(s), determine the best alternative(s), and recommend actions to take before it is too late. It is very difficult to do ?post-mortem? planning. We are sensitive to the cost/benefit issue of charging for our time. We will be fair. Please, do not hesitate to contact us when you have a question because ?it may cost too much?.
Quite a few, actually. We have been preparing personal, business, trust, non-profit, and estate tax returns for over twenty-five years. And the next question is, "How much will it cost to prepare the return?" The answer is a little more involved than you might expect.
Each year we will send you a Tax Organizer. This organizer is a kind of ?road map?. It is designed to help eliminate the possibility of oversight, either on our part or our clients. There is a questionnaire section for the purpose of highlighting new or changing issues, followed by a section that reflects the prior year sources and amounts of income and deductions for the purpose of making sure that an item is not omitted, and ending with a page for our clients to relate to us any issue that has not been addressed. For first year clients, obviously the prior year information will not be available. We do request that first year clients fill out the questionnaire and fill out the sections for basic client data.
In our business, time is our inventory. It is, therefore the most significant element of the cost of having your tax return prepared. The more time it takes to prepare a return the more it will cost. Management of time is a responsibility shared by both the tax preparer and the client. Our experience and efficiency in tax compliance and tax law, your organization of your tax data, and your desired amount of consultations are important in determining the cost of preparing your tax return. Internally, within our firm, several other factors are also significant in the determination of how much time will be involved in the preparation of a tax return, and, generally, there are seven steps in the preparation process:
1) Client turns in the tax data: An initial review of the Tax Organizer and tax data is done to address any obvious issues. This is done whether the client comes in for an office interview, drops off the information or mails the information. An in office consultation, phone call(s) or e-mail(s) may be needed to immediately clarify some of the information.
2) Preparation of the tax data for processing: This includes organizing the tax data into an efficient/workable structure, checking totals and/or summarizing portions of the tax data, a 2nd review of the tax organizer and tax data is done to determine if any items or issues require further inquiry or research, making copies of the tax data for our files (generally, a copy is made of all significant source documents), and creating current year files;
3) Research and/or further inquiry: Sometimes an unusual situation arises with regards to tax law, unique client situation, or a transaction which requires research and/or further discussion with the client. Research in tax libraries regarding issues and previous case law, analysis for justification of a position, summarization of transactions, and/or clarification of a particular transaction or fact set may be necessary to resolve the matter. We are careful to balance the cost/benefit of our research and time. Given the circumstances, we will pursue a resolution that is in the best interest of our client.
4) Processing the tax return: This includes inputting the data into the tax software, preliminary processing of the tax return, analyzing the diagnostics, and proofing the return for clerical and technical accuracy; and ?proofing? the return for data input errors.
5) Client follow-up: Contacting the client with regards to the results of the tax return including verifying information, identifying any omissions from the return, reviewing any elections available to the client, and a review of the tax liability and arrangements for paying a balance due or applying a refund.
6) Finalizing the tax return: Final processing of the return, printing, file documentation, and preparation of the return for delivery to the client.
7) Delivery of the tax return: This could be an office visit or a phone call or e-mail following the client having received the tax return by pickup, mail, or delivery, generally including a discussion of the tax return, and often a setup of an appointment for a review of tax and/or financial planning strategies.
Not all of these steps are required for each return, and, even so, the preparation fee is not merely a function of a billing rate times the amount of time spent. Over the years we have come to be able to estimate, within a range, the average fee for the preparation of various forms and schedules. To that end, we have developed a ?fee schedule? which reflects minimum charges for the forms and schedules generally encountered. Please refer to Fee Structure - Section 2.2 and Fee Schedule: Tax Returns ? Section 2.4.
Our objective is to provide you, with reasonable assurance, an estimate of the costs involved with the preparation of your tax return. If, for some reason, we anticipate that the fee for the preparation of your return will be more than the attached fee schedule would indicate, we will notify you immediately and will not continue until we have had an opportunity to discuss the matter.
We hope this information helps to provide an insight as to how your tax return is prepared, how tax preparation fees are determined, and to give you an idea of how much to budget.
1.5 Services We Provide We provide the following services from strategic development to tactical implementation:
Business Planning: entity analysis and selection; analysis and explanation of capital raising alternatives; financial statement analysis and explanation; business plans including ?Significant Numbers Analysis?; sale/purchase of business; budgets and projections; sales pricing/cost analysis; asset acquisitions and disposals; purchase versus lease analysis; ?Predictive Accounting? compensation policies; internal versus outsourced payroll; hiring spouse and children, ?why automate? analysis; vertical and horizontal software analysis; ?Financial Information Manual?; objective ?sounding board?.
Business Compliance: accounting process evaluation, setup, and ?check-ups?; financial information flow analysis; ?enter it once? methodology; financial statements; after the fact accounting (bookkeeping); internal control evaluations and policies; technology evaluations; train and supervise accounting personnel.
Tax Planning: minimize taxes; retirement plan analysis and implementation; benefits analysis, planning, and implementation; plan for/explain tax issues such as alternative minimum tax, minimum distribution requirements, self-employment tax, realized versus unrealized deductions, passive versus active participation; ?wash-sale rule?, ?tax free? exchanges.
Tax Compliance: federal and state tax returns for personal and business (corporate, partnership, limited liability company), estate, fiduciary/trust, payroll, sales; objective ?conscience?, efficient tax preparation.
Financial Planning: wealth accumulation; income generation; ?Continuum Theory?, stock option participation, exercising, and disposition; risk analysis; tax and economic analysis of investment/business opportunities; ?financial marriage counseling?; retirement income stream planning; ?Life Support ? a financial approach to life?. Financial Compliance: financial statements; monitor investment plan; determination of retirement plan contribution(s).
Estate Planning: business succession planning; asset transfer planning through gift versus estate.
Estate Compliance: trust and estate administration; up to date will; estate accounting.
Litigation Consulting: review and analysis of litigation claims; damage buildups.
1.6 Goals and Objectives It is our goal to provide you with exceptional quality of service. To help us achieve that objective we would appreciate your taking a moment to reflect on and commit to writing your expectations of our engagement and your criteria for evaluation. Use the form below. We will keep a copy of your response for our files and address these matters as a part of our periodic review.
- Twenty-five years in public accounting, including three years with “Big Ten” public accounting firm. - Five years in private industry as Chief Financial Officer. - Expert/consulting witness in thirteen litigation cases.
Education:
BBA Accounting, University of Texas at Austin, 1977. Certified Business Works consultant. Certified QuickBooks consultant.
Professional and Civic Associations
Texas Society of Certified Public Accountants Texas Society of CPA’s Continuing Professional Education Sponsor American Institute of Certified Public Accountants AICPA Division for Taxation AICPA Division for Management Consulting Services AICPA Division for Information Technology Author: Annual Tax Update and Analysis 1986, 1997, 2001 Austin Independent School District Adopter Program: Adopter: Hill Elementary School 1990-1993 Special Recognition – Adopter of the Year 1991-92 Red Apple Award 1992-93 Adopter: Doss Elementary School 1995-1997 Technology Advisor Any Baby Can, Austin: Board Member, 1995-1999 Austin Natural Science Association: Treasurer, 1992- 2000 Lower Colorado River Authority United Charities: Volunteer, 1990 1997 Covenant United Methodist Church: Treasurer, 1990-1992 Center for Education Development and Nutrition (CEDEN): Volunteer, 1989- 1995 Northwest Little League: Treasurer, 2000-2002
Personal:
Married, four children. Austin native. Interests: I love to compete at anything, anytime. Motto: “A little bit, everyday.”
2.1 How We Charge For Our Services. We make our money generally by charging an hourly rate for the accumulation, preparation, analysis, review, and discussion of findings, tax returns, financial information, and consultations, plus out-of-pocket expenses. Our chargeable time includes office, telephone, and e-mail consultations with clients and other consulting professionals and research as required or requested. Our out-of-pocket expenses include tax return fees, delivery expenses, and measured phone service, Flat fee arrangements may be agreed to in special circumstances when mutually beneficial to our client and our firm.
2.2 Fee Structure Different levels of service require different levels of expertise and responsibility and rates for those services are set respectively. Standard consultation services are charged at $100/hour. Business negotiation, litigation consulting, and IRS representation services are charged at $150/hour. Bookkeeping rates for in house or outsourced services are charged at $30 -to- $75 per hour.
Charges for tax returns can vary and are somewhat difficult to estimate absolutely. In order to help our clients anticipate the approximate fee(s) for the preparation of tax returns we have prepared a schedule with an estimated ?per form fee? for tax returns (see Fee Schedule: Tax Returns - Section 2.4). The fee amount reflects an estimate, based on our experience, for a ?normal? situation, taking into consideration time for client intro and exit interviews, preparation, review, and out-of-pocket costs. Sometimes these ?standard? fee amounts are not adequate for a particular situation. In these instances we will assess the circumstances and provide an estimate for the anticipated fee before proceeding.
Charges for accounting services involve an analysis of services to be provided. The analysis includes consideration of the level of input requested/required, the volume and complexity of transactions, and the internal versus external use of the financial statements. To help in the determination of the fees we have prepared a checklist for the various components in the accounting process (see Fee Schedule: Accounting Services - Section 2.5). We will review and go over this checklist with our clients for purposes of establishing an initial fee structure. We will determine a mutually agreeable ?test period? during which we will perform services. At the end of that period we will meet with the client and review the process and fee structure. At that time either we or our client may suggest/require changes to the fee structure.
2.3 Success Appreciation There are occasional circumstances where we are able to resolve an issue, negotiate a settlement, meet a deadline, or affect some other outcome in our client?s favor that provides our client value in excess of an hourly billing rate. In these circumstances we will provide a statement that will detail the issue, the resolution, the monetary benefit, and a proposed invoice. Client input and discussion will be welcomed.
Back to Top 2.4 How We Get Paid Fees for our services are due and payable upon completion and delivery of the services provided. For your convenience, we accept all major credit cards. Please be advised that a 3% administrative fee will be applied to the balance for payments made by credit card. Payout arrangements may be made only if agreed to in advance and interest may be charged on outstanding balances.
We will generally provide an estimated fee range before beginning the engagement.
Our fees are deductible for tax purposes.
Tax Services: We have prepared a worksheet (see below) that you can use to estimate our fee. Download the file below, then, enter the "number" (how many you have) of each of the forms and schedules that are involved with your particular tax situation. The form is self-calculating. The result will be an estimate of the amount that we may charge for our services and out-of-pocket costs.
Accounting Services: Accounting services have many "moving parts" and a dialogue is usually necessary to determine estimated fees and out-of pocket costs. We use a comprehensive worksheet to analyze the various components of providing accounting services. We have included that worksheet below for you review. A discussion of the various tasks and responsibilities will help determine the amount that we may charge for our services and out-of-pocket costs.
2.7 Engagement Letters Our profession strongly encourages the use of engagement letters. An engagement letter is a document that sets out in writing what services are requested and expected by the client and the fees to be charged by the firm to perform and deliver such services. Generally, our firm will request an engagement letter before we begin to provide services.
We will keep a copy and provide you a copy of the Engagement Letter detailing the services to be performed and review these matters as a part of our periodic review.
