The Future Tax Practice

1. The Future Tax Practice Sandra Wiley Shareholder Boomer Consulting, Inc.

2. POLLING: The number of individuals in our firm is: 1-5 6-25 26-75 76 – 150 >150

3. POLLING: My position at the firm is: Owner/Partner Manager Staff Administrative Other

4. Today’s Journey Introduction It Starts With Technology Impact Factors Planning It Ends With Technology Change – Vision - Leadership

5. Introduction

6. Your # 1 Priority Maintain Confidence

7. Trust—The WavesDetermine the speed of change. Societal Market Organizational Relationship Self

8. Your Firm’s Decision From The Speed of Trust by Stephen M. R. Covey

9. The Economics of Trust Low Trust = = From The Speed of Trust by Stephen M. R. Covey

10. The Economics of Trust High Trust = = From The Speed of Trust by Stephen M. R. Covey

11. Management Leadership 1 2 3 4 5 6 7 Efficient Effective Improving Cutting Copying Different Impossible The 7 Levels of Change

13. It starts with technology… or does it?

14. Integration…the complexity of firm systems

15. Applications • Personal tax • Business tax • Estate tax • Time & billing - AR • Trial Balance - Work Papers • Write-Up • Document/Content Management • General ledger – AP • Payroll • Accounting Research • QuickBooks • Learning Mgmt. System • Depreciation • Email – Exchange • Word – Excel – PowerPoint • Project management • Tax Planning • Website – Intranet • Tax planning • Tax research • SharePoint - Portals Most firms have a minimum of 15 applications.

16. POLLING: How many applications does your firm utilize? • 10 or less • 11 to 15 • 16-20 • Over 20

17. Why? • Firm decision making process • Lack of partner knowledge/involvement • Lack of an IT Leader • Department versus a firm approach • The vendors • The IT Industry • Hardware • Software • Lack of plans • Strategic • IT

18. Integration

19. Definitions Middleware is computer software that connects software components or applications. Web service is defined by the W3C as "a software system designed to support interoperablemachine-to-machine interaction over a network"

20. Types of Integration

21. Don’t Confuse integration with Migration & Linking One-way Static Relatively easy

22. Solutions Simplify Leverage processes Train Eliminate “Wizards”

23. Wizardry The end user is unreasonably committed to keeping the old system even though it offers low productivity to the rest of the employees, particularly non-wizards. This applies to paper based systems as well as digital. Requires change management. Boiling the IT Frog by Harwell Thrasher

24. Communication • Increase perception and trust • IT people & doctors • The similarities • The differences Boiling the IT Frog by Harwell Thrasher

25. Improving Communications Clear and consistent objectives Use simple terms Disclose risks early Provide strategies to minimize risks Under promise – over deliver Focus on results and process changes – not the technology

26. Firms without an it strategy Are like sailing a ship without a destination Expensive in the long-term Strategy starts with business objectives -multiple levels of strategy

27. POLLING: Do you have a current IT Plan? Yes No

28. IT Strategies to Save Virtualization Printing Get Digital Software licensing Email Management Document – improve processes Training

29. Training & Learning People Development Leadership Development Cultural/Orientation Allocation of Learning Hours Personal/Self Development Ongoing Development Client Service/Practice Development Core Technical Training Role/Position Training Technical/Updates Entry Retirement Source: Plante & Moran LLP

30. The Tax Practice(Your Peers Speak Out)

31. Is your tax practice as profitable as it should be? • Yes 91% • No 9%

32. Why is it not as profitable as it should be? • Lack of efficient processes. • Lack of the “right people” – skills. • Too many clients that don’t fit our client profile. • Poor technology. • Other

33. Do you have a current document outlining you processes for business and 1040 series returns? • Yes • No

34. What worries you most about the future? • Regulation/law changes • Technology • Competition - fee pressures • Lack of trained people • Other

35. When do you scan client data? • Up front • At the end of the process. • We don’t scan – still use paper.

36. Do you utilize a workflow system? • Yes • No

37. Do you believe in the concept of one-way workflow? • Yes • No • What is it?

38. Do you use portals • Yes • No • We will for the first time this coming year.

39. Do you bill with the return? • Yes, the majority of the time. • No, we bill monthly. • No we use fixed price agreements.

40. Do you utilize electronic billings? • Yes • No

41. Does your firm allow social networking tools like IM, FB & YouTube in the office? • Yes • No • To limited users

42. Do you monitor Federal & State privacy & security laws? • Yes • No See Resource Page

43. Impact FactorsProcesses

47. Workflow Mapping Results Too many touches Acquisition & organizing client data requires time and touches Loops in the process Printing vs. onscreen Applications rather than systems Print/scan??? Workpaper containers vs. doc management systems Delivery methods are inefficient Use of email

48. POLLING: Have you reviewed your tax practice in detail in the past 12 months? Yes No

49. TEAM More preparers will work out of the office in the future More firms will share resources (staff) among offices?

50. Six Sigma