Discussion:Over Analysis Paralysis
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Over Analysis Paralysis
Figuringitout (talk|edits) said: | 29 March 2006 |
| Do others suffer from this? I am spending an inordinate amount of time of some of my returns, revisiting issues and scenarios to the point of indecision. I am a CPA candidate and have not yet acquired the expertise that I feel will allow me to be confident in my decisions. I find myself checking and rechecking, maybe to excess.
I appreciate this forum as it has been a very helpful resource. | |
HelplessTP (talk|edits) said: | 29 March 2006 |
| Classic case of insecurity-based indecision...the condition improves with age and confidence. Shows that you really care about the quality of your work. A common problem with highly-analytical and caring sorts. In my opinion, you'll grow to be a better professional because of it, though frustrating at first. | |
| 29 March 2006 | |
| I think that could be "normal"- Good professionals hate to do mistakes.
My teacher- for the insurance license- used to tell us: "All us you are going to do bubus"- My ex boss used to tell us: "It is okey to do mistakes... but please don't do it twice" Then, I'm doing all kind of mistakes.. but just one time each of them. My excuses: New - and tought- internal software ,and dealing with 8 diferent insurance companies. Almost every day, after the alarm was set , and the door locked- I am back to the office to "check" the door. Tax code is complex. The easiest return-plus the software- could bring any kind of complications. For instances, Yesterday I found that a return filed 2 weeks ago was rejected -already resend it and accepted- but the client will have a delay in his refund bacause of a mistake- and I don't know how that happened. This is my first year using tax wise, and I think it is self-explanatory- but still sometimes it is hard to deal with him. Also, I don't know why it took too much time to the program to advise me about that. | |
| 29 March 2006 | |
| Our best friend, let's tell the truth, is the statute of limitations! I get great joy out of going to the files on 4/18 this year and tossing out the 2002 returns! Not as scared as I used to be, but I can remember during that looking for the time bombs in that drawer that never went off. Software makes us better, but we need to learn how to trust it and use it. I'm to the point now with ProSeries that when something isn't right, I doubt me first...and trust it. Those guys who program this stuff are amazing.
But this board has been a tremendous help to me, just to keep me sharp and teach me new things, and question things I've taken for granted for years... | |
| 29 March 2006 | |
| Don't work a lot for a few bucks.
I read that you can find 100 different solutions for the same return prepared by 100 diferent professionals. For instances, a client brought a W2,He file MFJ with one dependend. He also made a few thousands of dollars - reported in a 1099 Misc . AIG around $ 17.000.00 Their refund is going to be between $3 600.00 and $3 730.00 depending of deductions on his Schedulle C. He is in a hurry I told him: "I would like to give you a 100% accurate return" "And what do you need?' "Time. I have to open a form to enter depreciation" "I have no time" Here you are. Is not a big deal. IRS is not going to audit you for $50.00 more or less. If they do it, be back and we file an amended return. | |
| 29 March 2006 | |
| I was glad to see that I am not the only one who has insecurity-based indecision. I am a sole prop and feel like I don't have anyone to bounce ideas off of like the bigger firms have. I was actually thinking of joining a small firm because of that reason. I have 13 small business clients who use me more as their CEO and consultant. My biggest headache is when they talk to other business owners and hear what their accountants are doing, like so and so gets to deduct this or that, why can't I? Or better yet - How come so & so always gets a bigger refund? | |
| 29 March 2006 | |
| Yeah, Karen, and my Christmas party really sucks,too. No one else shows up!
It is helpful to make friends at seminars and keep friends from your old life in the corp. world...and here. | |
| 29 March 2006 | |
| Do it, Karen.
I just have done personals . It should be a nightmare to get small business clients. | |
| 29 March 2006 | |
| Right now I am still in the corp world too. I also own an Scorp but desperately want to get out. Will be talking to a buyer tomorrow. Then I would have more time to devote to my accounting business. With all my new free time I know I have to expand but don't know into what areas. I was going to wait until tax season was over to make a post asking for suggestions or ideas. | |
| 29 March 2006 | |
| You are not alone. Just about the time I think I have something figured out, something crops up and I start to doubt myself. I did get the CCH Express answer manuals the other day and it adds another source to check answers. I find that the more I work with the software, the more familiar I become with it. However, it does present some problems when a person doesn't know exactly what the software is doing. Like someone else said, I am a sole proprietor and have no one else to bounce ideas off of. Sometimes a person needs an answer immediately. This forum definitely helps. | |
Figuringitout (talk|edits) said: | 29 March 2006 |
| Thanks everyone for your responses. They have been very helpful. At least I am not alone. I look forward to gaining increased confidence with more experience.
I also feel like I don't have someone to bounce ideas off of. So, I too am greatful for this forum. My father in law who has passed away was always open to listen and offer advice. I miss him terribly. Like Martineo, he said it was ok and expected to make mistakes now and then while learn a lesson for the next time. In fact, if I was wrong about a particular handling of an issue he was quick to point out that it was only a mistake and go on to tell me about one of his. Thanks again! Calming down here. | |
Figuringitout (talk|edits) said: | 29 March 2006 |
| Sorry, meant "grateful"! Just read over my post. Spell check has me spoiled! Which brings to mind a question. Can we spell check our posts???!! | |
| 29 March 2006 | |
| We don't have spell check yet, but it has been suggested before and is on our enhancement list.
| |
| 30 March 2006 | |
| The problem with making a mistake (even once and learning from it) on taxes is it's usually costly. My concern is what happens if I make a mistake and it ends up costing them a lot of money. Am I then going to face a lawsuit?
I have a client now that I've been working with for 3 years. The prior accountant filed form 1120 for a partnership and issued the members W2s. Supposedly the election had never been filed to be treated as a corp. I've spent a lot of time resolving these issues. I ammended the 1120 to a 1065 and all the payroll reports. Tax year 2002 still isn't resolved even though I've been working with the taxpayers advocate office. My clients want to file a lawsuilt against the previous accountant. He did not have them file any estimates and they ended up oweing over $30,000 in tax. They still would have owed it regardless. He just failed to do the estimates. This is what keeps me awake at night. What if I make a huge mistake like that? | |
| 30 March 2006 | |
| Being careful,cautious and thorough is part of this profession. However, being realistic is also part of it. You cannot do tax returns and not make a mistake. Let me say that again ... you cannot do tax returns and not make a mistake. How you deal with a mistake is what is more important, in the end, than making the mistake in the first place. After over 20 years of doing returns, I have learned that most people are OK with your mistake if you address it as soon as you know about it and then offer alterntives to resolving that error. Just do not become one of those who is paralized with fear of making an error ... you will not succeed and you will not provide a meaningful service for your clients. | |
| 30 March 2006 | |
| Focus on $150 - $250 1040 type clients - make about $200/hour on average without even having to use your brain 90% of the time. How can you beat that? Nothing to lose sleep over, etc. I feel the same way, I start getting into some of these smaller business clients where some subtsantial dollar tax decisions always pop up. Always worrying about their issues, on my way home, by the pool, etc etc. and then end up usually getting less per hour. Just doesn't make sense. But I've come to realize, as you grow a practice, you can't be choosy, at least in the beginning. Although now I actually really admire the H&R Block businesses (at least the owner's anyway - they've found a very profitable niche in my opinion). | |
| 30 March 2006 | |
| I fully understand what you're talking about. I too often find myself second guessing my decisions on the more complicated transactions. But as a professional I think we have to search for the "correct" answer under the tax law, even if it means spending more time on something than we'd like. Hopefully, after a while these will just be recurring situations that we'll know how to handle.
On the other hand, I like ScottCPA's solution of focusing on stuff we know for sure, and pumping out the volume in that area. | |
