Why am I blogging in the middle of tax season, when I’m turning away new clients due to lack of time?
I’m not exactly sure, except that I need a break from all those numbers and need to use the other side of my brain for a while (is it the left side of the brain that is supposed to be the more creative side or the right??) I also need to vent!!!
I have had more than one new client this year who has started a businesses with no clue as to what the tax ramifications! There was no consultation with an accountant or an attorney and no tax estimates were paid on self-employment income. If you are toying with the idea of starting a business this year, do yourself and your tax preparer a favor and spend a few bucks to get professional advice prior to making the plunge!
Setting up a bookkeeping system from the very beginning will also save you lots of money in tax prep fees since that person won’t need to spend billable hours trying to make sense of an Excedl worksheet, or even worse, a pile of business receipts!
I’ll write a post on some of the considerations in starting a new business when I have more time after tax season!
Second, if you plan to change to a new tax professional, don’t wait until April (or even the end of March) to call that person. Most true professionals will want to spend some time with you going over your financial details and questions, but most will not have the time to consult with a new client at this stage of tax season. Personally, I will not take clients this late. I will offer to file an extension for them, and explain that they may owe an interest penalty if there is tax due when the return is filed after April 15th. I’ll be honest with you and let you know that my experience working for different firms over the years, is that returns that come in at this late date are “pushed through” with the last minute rush and often go out with mistakes! Another undesirable option, in my opinion, is to go to a walk-in tax service and have a return prepared by someone who (maybe) completed one nighttime tax course.
Enough rantings for now.. back to the 1040’s and such!
