TAX SEASON ‘07:Working Harder, Enjoying It Less?

You’re not alone. Only 49 days left to Tax Season 2007.

Join the tracking survey. Check the Stress-O-Meter.

by Rick Telberg
At Large

Tax practitioners are finishing the first few weeks of the busy season reporting that they are working harder and enjoying it less.

Compared to last year at about this time, about twice as many tax professionals are reporting high personal stress levels. In fact, some seven percent report they’re “totally crazed!” Join the survey panel.
Last year at about this time, about one-third of the tax professionals we know were saying the 2006 busy season was running better than 2005. This year, only a quarter would agree with that happy assessment. In fact, today it’s just the opposite — with one-third reporting the 2007 busy season is running worse than last year.

Good news. Bad news.

The good news is that more practitioners are handling more clients than they did last year. The bad news is that fewer practitioners say their revenue-per-client or profit-per-client is higher. And net profit is off to a weak start.

Last year, the top problem facing practitioners was late or unprepared clients. A number of practitioners say they’re being overwhelmed with more clients coming in earlier than before. Normally, CPAs have a hard time getting clients to come in on time, let alone early. This year, many tax professionals are reporting that too many clients are coming in too early, and it’s the professionals who have been caught unprepared. With very little staff, the early deluge is straining resources.

“More clients are coming in earlier instead of waiting until the last minute,” says Elisa A. Armetta, owner of Armetta and Associates in Lake Worth, Florida.

Joe Eckelkamp, president of Eckelkamp and Associates in St. Louis, reports “a huge and sudden influx of work completely unrelated to tax season.”

“We do a lot of ‘Rent-a-CFO’ work,” Eckelkamp says. “We had a couple clients that are in the midst of the sale of their businesses, and we’re handling the entire process for them.” Nevertheless, Eckelkamp reports his firm is ahead of an already exceptional prior year - more clients are coming in, the firm is better prepared, and returns are moving through the system faster.

On the other hand, one in six practitioners last year was struggling with new tax software. This year, hardly any of our respondents is adjusting to new software. They’re sticking with what they used last year.

That doesn’t mean they’re happy with their software. Last year, the overwhelming majority of practitioners said they were happy with their tax software. This year, only a fraction would recommend their software to others. In our ongoing tax season survey, we’re collecting CPAs’ views on their tax software packages and will report back after tax season.

Even the best and most established CPA firms are feeling the heat. The managing partner of one local CPA firm speaks for many when he complains about the December 20, 2006, tax legislation. “The stupid telephone excise tax refund,” he exclaims. “How do you get all that detail from clients at the last minute!? Many are saying forget about it.”

His firm handles 400 corporate returns, 1,000 individual returns. They’ve been in business for 30 years and they still have their first client. Still, the managing partner is feeling the heat.

“Too much to do and so little time,” says one partner at another small firm, who pleads for “more staff.”

Look at the bright side, only 49 days to go.

NOW IT’S YOUR TURN: Join the tax season tracking survey. Check the Stress-O-Meter.

JUST FOR FUN: Get “52 Proven Stress Reducers (For overworked accountants, finance managers, and the people who love them).”

[First published by the AICPA]

Posted at February 25, 2007
Filed Under BSG [CPA TRENDLINES] |

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