by Amanda King | Certified Public Accountants
Stay Up-to-Date on Tax Fraud This year, the Internal Revenue Service (IRS) identified 12 tax scams ranging from phone scams, to identity theft, to falsifying income for tax credits. As an accountant, it’s imperative to stay up to date on tax scams to educate others and so that you can warn your clients in case they decide not to use your services. According to identify theft data from the Federal Trade Commission, tax fraud has increased in recent years (surprise, surprise). Last year, the number one consumer complaint in how an identify theft victim’s information was misused was tax or wage-related fraud. And, this year, a new method of online tax fraud was discovered. Often times, tax fraud criminals will file a tax return in a victim’s name in order to collect the victim’s refund. But, in February, between 24-40 taxpayers reported that when they logged into TurboTax®, they noticed their state return was already processed. In early March, Intuit® CEO, Brad Smith, and other tax software leaders met with the IRS to address the problem. How Taxpayers Turned into Tax Fraud Victims They explained that 24 of those victims used TurboTax and all of these victims had elected to have their filing fees taken from their refunds in a refund transfer. A recent AccountingToday article explains what happens next in this process, “After filing fees are withdrawn, refunds are transmitted to taxpayers with a deposit by Tax Products Group, owned Green Dot Corporation, a bank that works with tax-preparation firms. In these newly reported instances, taxpayers’ personal information is obtained so the refunds can be sent to another bank account.” So,...
by Amanda King | Certified Public Accountants
Be the Brand & Be Client-Focused Differentiate and stand out from the crowd. Show your clients that you bring more value to the table than just number crunching. You can be a valued advisor by turning your relationship with your client from serving to partnering for success. Combine this new thought process with the right marketing tactics and growth is just around the corner! Here are our top 5 tips to help you improve your marketing tactics: Who are You? Before you brand yourself, you need to know what your company’s message is and its culture. Wrap your head around it and make sure you believe in it. Find Out What Makes You Unique There’s a lot of competition out there, whether you’re an accountant based in a city or suburban area. And, with the Internet and word of mouth, information spreads fast, especially on social media. You need to be able to set your company apart from all of this competition. Quality and price are characteristics accountants are already using to differentiate themselves, so these aren’t unique factors use for your firm. Tell Your Story Finding the answer to this question can be daunting. Here are a few questions to ask yourself: What could you do that would make perspective customers care or care more about your company? When your clients think of you or your company, what words come to mind? If you were looking for an accounting service you provide, how would you want to find out about it? Once you answer these questions, craft these answers into marketing statements. For instance, begin your answer to the first...
by Amanda King | Business Coaches, Business Owners, Certified Public Accountants, Tools
Social Media Increases Product Sales & Brand Awareness The beautiful thing about using social media for your business is that it’s less expensive than traditional advertising avenues like billboards, radio spots or print magazine ads. And, there’s a way to track impressions and the click-throughs rates to your website, which allows you to understand how those results translate into return on investment. Professional service providers: here are our top three tips for using social media in order to grow your business: Hire a Skilled Social Media Manager, If Possible Even if you’re a small consulting firm, hiring a skilled social media manager to oversee your social media channels is crucial. There is a stigma that the field of social media is centered on creating content and simply posting it. But, there are actually a lot of creative and technical moving parts behind the scenes. And, when you’re busy focusing on business, you need someone on your team that has the skills to write creative marketing content, research, engage with brand advocates (followers who like your product or service so much they’re eager to tell others about it), and then analyze content – differentiating between what’s working and what isn’t. If hiring a social media manager isn’t in your budget, hire an intern. Many colleges and universities offer social media/social media marketing programs. The first class of students to go through these programs will most likely be graduating around the end of this year. Tapping these new graduates will be cost effective, as well. Identify and Engage Brand Advocates and Industry Influencers Whether you are able to hire a social media...
by Amanda King | Business Coaches, Business Owners, Certified Public Accountants, Resources
Key Financial Ratios Help Manage Your Business Your attention is usually focused on a key area within your company. Maybe that’s in marketing, sales or technology. Handling the financials may not be your forte. But, it’s important to be able to analyze your company using business profitability ratios. Financial ratios are used as indicators that allow you to zero in on areas of your business that may need attention, such as liquidity, profitability, operational efficiency, and solvency. Financial ratios are also useful tools in forecasting and financial analysis. They allow you to set specific goals and track your business’s progress toward these goals. It’s important to choose financial ratios that apply to your business. There are hundreds of financial ratios out there and while some of them apply to all businesses – there are some specific financial ratios by industry. Here are the top five most powerful and widely known financial ratios you should use in order to make your business succeed: 1. Net Profit Margin This ratio is the most important measurement. With this ratio, you can understand how each dollar earned by your company is translated into profits. How to Compute Profit Margin Ratio: Net Profit / Net Sales It indicates how efficient your company is at its cost control. For example, a higher Net Profit Margin means the business converts its revenue into actual profit more effectively. You can use this ratio to compare yourself to your industry peers, as well. 2. Current Ratio This ratio is a performance measurement of a company’s liquidity. The measurement determines if your business has enough resources to pay its debts...
by Amanda King | Business Coaches, Business Owners, Certified Public Accountants, Resources
Why You Should Be Benchmarking If you are a business owner, an accountant or business coach advising a growing business, measuring the company’s performance can help improve productivity and profit. Measuring performance keeps track of the business’s progress and gives you information to implement a target-setting system allowing you to strategize a plan for growth. Benchmarking a business is the process of evaluating it and comparing it to other businesses or internally based on measurements. It’s a great tool for improving your understanding of a company’s performance and potential. Who You Should Benchmark Against You can benchmark internally within the business. For instance, you can examine performance among departments within the company. Or you can compare the business to other businesses in the same industry. Yours or client’s company’s objectives and market position will also play a role in the comparisons you’d like to make. Info Entrepreneurs, a team of business information experts from the Board of Trade of Metropolitan Montreal says, “For example, a small business in a crowded sector may want to benchmark itself against average performance levels in the sector. But a business targeting rapid and significant growth may choose comparisons with an established market leader.” What to Measure Different industries and companies within an industry measure success differently. But, these financial measurements or benchmarks provide a quick evaluation of a business’s financial health: Net Profit Margin – This is the most important measurement. It is calculated by dividing net profit by revenue. By using this, you can understand how each dollar earned by the company is translated into profits. Liquidity Ratios – You should review two...
by Amanda King | Certified Public Accountants, Resources
Make More Money During Busy Season If you’re a Certified Public Accountant, you know that March is one of the busiest months of the year for you. April 15 is your deadline so your workdays during tax season turn into late nights at the office. It’s your busy season. Even if you feel overwhelmed with the work you have, it’s important to continue to increase revenue for your accounting firm. Don’t get buried in your work so much that you miss this opportunity to grow. Here are some tips to help you get started: Help Your Client’s Business Become Successful At an upcoming meeting with a client, discover what they need help in making their business more successful. Think about the services that your firm offers and consider whether they would resonate with your client. Educate Your Clients While preparing your client’s taxes, they will naturally have questions for you about their income or business. They trust you with their financial information and you owe it to them to educate them and ask them questions in return. At times, your clients ask simple questions about new write-offs, tax incentives, etc. Follow up with a question, such as, ‘What made you ask that?’ Engage with your client and share your knowledge. This rapport-building is also a great relationship-building tool. In an era when convenience triumphs loyalty, CPAs need to continuously work to build relationships with their clients. Learn How to Say No For many accountants, it’s hard to say no to taking on a new client. During the busy season, you may have feelings of regret for taking on a certain...
