Discussion:"Second partner review" for sole practitioner
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Discussion Forum Index --> Tax Questions --> "Second partner review" for sole practitioner
| 8 August 2007 | |
| As a sole practitioner, I am facing the problem many of you no doubt have: I now have to review my own work.
How do I go about finding another professional to review work for me? Someone I spoke to likened my situation to utilizing a second partner to review; I don't want to pass off responsibility for the return and for signing it. I just want someone with a trained eye to look for errors and (harder to find) exceptions This is not a matter of proofreading data entry; I have questions of basis in LLC's, loss limitations, carryforwards, etc. for which I think I need someone who knows as much or more than I do. Have any of you done this before, as a sole practitioner or for a (new in his own practice) sole practitioner? Do any of you have a sample representation letter for such an engagement between CPAs? Lance | |
| 8 August 2007 | |
| Have you talked to other professionals in your demographic area? Some CPAs that share office space offer review to each other at discounted rates. | |
| August 8, 2007 | |
| Make some friends, use the phone, buy a good research product, spend time here, join an org with a local chapter (see making friends)... | |
| 8 August 2007 | |
| JR1 is absolutely right..the best thing to do is make some friends. I have a couple of friends I've worked with over the years that I can call for help, and they can call me to bounce some ideas around too. If you don't know anyone, use this and other internet message boards. I'm a regular poster to a few boards; not only do I learn alot more than I answer, but the other regulars provide a good support group.
As far as reviewing tax returns, after entering a return I have a reconciliation process I use before I print it. I add the various totals from the source documents by category (wages, interest, itemized, etc.) on a separate sheet of paper. I then add each category and compare it to the amounts on the computer screen. If the numbers don't match I check into it; sometimes I entered something incorrectly, while other times the some block somewhere in the software needs to be checked to get the correct amount. After making any corrections, I print the return. Almost all accountants I know use some variation on this process. | |
| 8 August 2007 | |
| We had a conversation about this a while back. | |
Death&Taxes (talk|edits) said: | 8 August 2007 |
| Ref's idea makes perfect sense. For me what does not work is picking up each source document again and comparing it to the return entry sheets, because I know I am infallible.....that's a joke, son.
I also teach the person who processes my returns to add Blocks 1&2, 16 & 17 of the W-2s up and compare them to the form lines [I do many PA & NJ where state wages rarely equal Federal wages], and I usually write on the processing sheet any exceptions she should note so she does not go nuts when totals are wrong. These might be something like a 1099R for the return of a current year 401K overage. | |
| 8 August 2007 | |
| Lance,
I have often tapped into the instructors of the nearby university where there is a master's program in tax. I have explained to them almost exactly the same as you explained up top. It helps if the professor knows you first (in my case, it was as a student) and if that person is currently practicing in public accounting. (I could tell you a couple of funny stories about differences in approach and communication styles between the person who only teaches and me, but I will spare you) The engagement letter will come from the one helping you. | |
| 8 August 2007 | |
| I pay an accountant from another firm to review my business returns. I also do financial statement audits and have him review the workpapers for those before I sign the audits. I bounce questions off this associate as well as other friends in the business - networking is very important. I've always used this reviewer, but at one point it became a necessity b/c I had my liability insurance through Camico and they insisted on this second reviewer. | |
| August 8, 2007 | |
| Hmm. Interesting growth opportunity here. What do you pay for a review of a return? | |
| 8 August 2007 | |
| A good place to find peers to assist you is a educational seminars. | |
| 8 August 2007 | |
| At those seminars, look for the ones asking questions. They usually learn much more than those who think they know it all already. | |
| 9 August 2007 | |
| JR I dont pay per return. Since he does workpaper review for my audits and I use him for questions as well, I pay an hourly rate. usually bills me once a year for the year's worth of time. Works out very well for both of us. | |
