How To Expedite the 1040 Review Process
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Transcript of How To Expedite the 1040 Review Process
How To Expedite the 1040 Review Process
and Remove the Reviewer Bottleneck
Sponsored by
Why are you here today?a. To increase review efficiency and do high quality reviews in less time
b. To learn how to remove the bottleneck in your firm at the review level
c. You’re trying to embrace the transformation from compliance to advisory services and looking for ideas/guidance/best practices
d. To be completely confident that every return you deliver is right and that planning opportunities within it are identified
e. To figure out a strategy for reclaiming time that can be spent on business development, recruiting, culture, and/or marketing advisory services
f. All of the above
The messy middle…1040 workflow
The most time-consuming part of the entire workflow
• Preparer mistakes• Missing client documents• Your firm’s bottleneck• Shortage of talent for this role• Double checking inputs is
mundane- not error proof
Since the ‘dawn of tax time’ technology has not addressed this part of the process…
• Tick and tie• Check lists
The transformation we are in the middle of right now
• Looking forward instead of backwards• The shift from compliance to advisory
• Culture shift• Virtual vs brick and mortar• Turnover• Access to global resources• The need to ‘sell’
• Talent shortage• Leveraging technology to advance your firm’s vision
Moving forward = embracing change Status quo = falling behind
Opportunity Cost
How many collective hours are you spending reviewing 1040 tax returns at the manager and/or partner level?
Have you ever calculated how much ‘cost’ is in your ave. 1040 at the manager/partner level?
Mistakes…the 1-10-100 rule…
Polling Question #1
For your 1040 preparation, do you…
a. Hand key into tax software from client documents or
scanned pdf
b. Scan and auto-populate
c. Outsource
Mindset shift
To successfully transition your firm to advisory and consulting services, it requires a mindset shift.
With a mindset shift, you have the opportunity to turn the 1040 review into an (advisory) revenue generating opportunity by leveraging resources and technology that allow you to shift your process.
Typical tax prep/review process- early tax season
Staff Accountant Manager/Partner
Hand key or scan Create 10-key tapes Reference workpapers Double check your
inputs Checklist Fix errors, clear review
notes
Double check inputs Tick, tie, re-check
calculations Find mistakes Make review notes Return to preparer to
address before final review
=
Typical tax prep/review process- late tax season
Staff Accountant Manager/Partner
Hand key or scan Create 10-key tapes Reference workpapers Double check your
inputs Checklist Fix errors, clear review
notes
Double check inputs Tick, tie, re-check
calculations Find mistakes Skip reviewer notes and
just correct the errors yourself to move the return off your desk.
=
Removing the review bottleneck starts at preparation…
• Develop preparers to become reviewers• Hire Millennials and Gen Z talent – for culture
• Meaningful work• Work/life balance• Flexibility (WFH)
• Leverage an offshore team or scan/OCR• Caution no touch can = lost touch
Button up preparation:
Polling Question #2
Who does the 1040 reviews in your firm?
a. Partner reviews after preparer finishes preparationb. Manager reviews, then sends to partner for final reviewc. Preparer is responsible for checking his/her own workd. You have preparers checking each other’s work before
it is sent for review.
Expediting 1040 reviews…
Step 1
Shift accountability downstream.
• Preparers become reviewers = critical thinkers/ advisors
• You get a better ‘product’ on your desk that takes less time to review.
• You gain time capacity that can be re-directed to more profitable activities.
But, how?
Expediting 1040 reviews…
Set a new expectation.
• Returns must be verified and reviewed before they land on your desk. YOU need to be able to open a return and look only for advisory opportunities- while feeling confident and assured that the return was already reviewed for accuracy in calculation and tax treatment.
• ZERO errors.
Great, but easier said than done…not really
Step 2
Expediting 1040 reviews…
Step 3
Create an independent expectation of the return• Peer preparer, preparer themselves, or manager
• Review using independent expectation of the return to verify accuracy of the result - no ticking, tieing, recalculating• Drop in only the numbers that matter
• Excel spreadsheet• TaxExact
• Match, match, match
• Approve and send to final review
No more bottleneck!
TaxExact™TaxExact allows accountants to recreate an independent expectation of a
1040 tax return in a fraction of the time it takes to “tick and tie”, the
traditional review method.
Immediately isolates errors and discrepancies.
Newer accountants are naturally trained to deepen their knowledge
of the tax code.
Client-facing tool for tax projection and proactive advisory (high value)
conversations.
Cloud-based with electronic collaboration and workflow to
empower distributed work environments.
Tax prep/review process- with TaxExact
Staff Accountant Manager/Partner
Hand key or scan into tax software (or Outsource)
Peer review using TaxExact Fix errors BEFORE sending for
review Accelerate development
learn tax code and become an advisor
Open return that is already verified independently
Focus on advisory oppswithin the return
Meet with clients Enjoy higher profits and
happier, stickier clients
Polling Question #3
What quality control do you have in place for making sure the 1040s your firm does are right?
a. We use a spreadsheet we created- an independent expectation…
b. We have an elaborate checklist…c. We hope for the best…d. We wait for clients to tell us we’re wrong because they
did their taxes in TurboTax and “discovered” they get more back…
e. We do a detailed review of inputs in the tax software-tick, tie, re-calculate and address errors we find before final sign off.
YOUR transformation
Time + Opportunity + Advisory Services = Increased Profitability• As a final reviewer- there is no need for ticking & tieing- or checking accuracy. You
are ONLY focused on advisory opportunities inside a return.• Your time is spent solving problems for clients that propel them and their
businesses forward.
What staff shortage?• Instead of worrying about hiring ‘reviewers’ or experienced accountants, you focus
on hiring for culture, knowing that you have a way to turn inexperienced accountants into reviewers and advisors quickly.
Increased retention and staff development• Junior accountants are focused on the review and using technology that challenges
their thinking and teaches them the tax code.
Quality control and assurance that it’s RIGHT
Revolutionizing
the 1040 Review
Process
Schedule a custom demo for your firm by
going to https://taxexact.com/request-a-
demo/.
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promo ending 9/30/21, please contact
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