Shoebox ... ugh

[Crank]

I have a client that owns two well known food franchises (is also a personal friend) for the past 5 or so years. Last year the partner who was responsible for keeping the books left and handed that responsibilty off to another significant partner. Apparently the partner who previously did the books didnt leave on good terms.

Well, yesterday they dropped off a large plastic box (I know I titled the post shoebox, but it was much larger) of invoices for me to sort through to prepare their 2012 tax return.

After picking my jaw up off the floor I told them that I couldnt prepare their taxes with the documentation in this condition. I looked at it and many invoices werent clear as to what they were. I dont do writeup nor do I have the time for it NOW. Also I dont want the responsibility (and possiblle liability) for coming up with their tax numbers, even if they are signing the return. Im just not willing to take that risk.

Needless to say they left disappointed. I told them to try quickbooks but they said they werent very good with computer software. So I gave them a list of categories that had been used in previous years. I also gave them a copy of LibreOffice and a template to record the category totals.

I can believe they were operating two business locations for 2012 without knowing how they were performing and at least comparing to prior periods. Or any type of financial analysis for that matter.

I dont think I lost a client but they looked like I was speaking Greek to them. They said they would get an employee to get everything together and get back to me.

Just wondering what others would have done in a simialr situation.

[Guest Taxed]

I have one business client (General store) that till this day does not own a computer. They still have those antique cash registers. Any ways all their books are in ledger paper. I charge them an hourly fee to review and reconcile their ledgers and then prepare the tax return. I had a choice either fire them or charge for rye time and effort necessary. I chose the latter because they are nice people though old fashioned. You can't teach an old dog new tricks! I usually do their returns in April after the initial rush (right now) has died down a bit!

[Lee B]

I have had similar situations in the past 2 or 3 years. However, I do quite a bit of writeup work.

First, I gave them a high estimate to do the writeup work. Second, I listed all of their tax return categories

and told them to make a folder for each category, sort all of the paid bills into the various folders, then

run a calculator tape on the contents of each folder. Of course you would also have get copies of

their bank statements to review for reasonableness. If they also have payroll, then you need copies of all

of their quarterly and annual payroll reports. Obviously, it can get more complicated, but this is a good start.

[Bart]

I have two different clients who offer secretarial/bookkeeping services. If my office cannot do the write up work i refer the new client to one of those services.

[Terry D EA]

I have one client who does this as well. But, he is organized with the paper work and all I have to do is reconcile the books. Like others, I charge a fee for that. Crank, I think I would have done the same thing. I had a truck driver that pulled out a crate box with all his records and said there it is and when could I be finished with it. I give him a polite but astronomical figure for me to organize that mess. Last I heard was he was getting his sister to organize it and he would get it me. Never seen him again, nothing ventured nothing gained I guess. I agree with you, better off not having any of the liability.

[CathysTaxes]

I have a client that owns two well known food franchises (is also a personal friend) for the past 5 or so years. Last year the partner who was responsible for keeping the books left and handed that responsibilty off to another significant partner. Apparently the partner who previously did the books didnt leave on good terms.

Well, yesterday they dropped off a large plastic box (I know I titled the post shoebox, but it was much larger) of invoices for me to sort through to prepare their 2012 tax return.

After picking my jaw up off the floor I told them that I couldnt prepare their taxes with the documentation in this condition. I looked at it and many invoices werent clear as to what they were. I dont do writeup nor do I have the time for it NOW. Also I dont want the responsibility (and possiblle liability) for coming up with their tax numbers, even if they are signing the return. Im just not willing to take that risk.

Needless to say they left disappointed. I told them to try quickbooks but they said they werent very good with computer software. So I gave them a list of categories that had been used in previous years. I also gave them a copy of LibreOffice and a template to record the category totals.

I can believe they were operating two business locations for 2012 without knowing how they were performing and at least comparing to prior periods. Or any type of financial analysis for that matter.

I dont think I lost a client but they looked like I was speaking Greek to them. They said they would get an employee to get everything together and get back to me.

Just wondering what others would have done in a simialr situation.

I do writeups. I put these types of clients on extensions and tell them they need to bring me the receipts either monthly or quarterly if they want to meet the April 15th deadline.