Paperless, reviewing returns with clients, providing client copies

[jklcpa]

OK, I started this topic to continue a discuss about printing that one of my questions had the potential to derail.

Highlights: I'm paperless but still review the paper returns with the clients from their client copy, then I get the e-file authorizations signed. Comments about providing client copies on flash drives was made and I asked how those review the returns with the clients, on a computer screen?

I'd like to continue the discussion here, and I'd like to hear about others of you handle your meetings and finished products.

I'd still like to review aspects of the return with the clients. I've mostly been using the 3-year comparison because it is a great summary of the return all on one page, and the clients seem to like that. I do show them the state return because many of my clients are older and are receiving benefits of DE's additional exclusions for those over 60 and 65.

 

[jklcpa]

Quotes from the other topic that got me thinking about how I could change things:

13 hours ago, Jack from Ohio said:

I print everything, client and preparer, to .pdf.  I store the preparer copy digitally.  From the pdf, I can use my printer's duplex function the way I want.  I stopped printing paper copies for myself 5 years ago.

I also give my clients the option of a flash drive.  I have purchased a large number of 4GB flash drives for $4 each.  I just copy the client pdf to the flash drive and give it back to the client.  Most of my clients take advantage of this.  Saves me a ton of time and paper.  In addition, I can easily include the worksheets I want the client to see without making the "packet" I used to give them much larger.

23 minutes ago, Abby Normal said:

I almost never review a return with the client. Very few ask for it. Some review it at home and call/email with questions. Some review it in the lobby and interrupt me if they have questions my office manager can't answer. I suspect that many never even open the envelope they pick up at the front desk.

Most of my clients still get a paper copy but I only print out the 'highlights'.

 

[rfassett]

I review very few returns with the client.  I am in communication with a good many of them all year long and we both have a good handle on how the return is going to look.  For the rest, we have a check-in system whereby one of the girls ask the client a series of pertinent questions and then if anything looks strange during prep I get in touch with the client.  I print the client copy and one of the girls check the client out going over highlights that I have made.  If there are any further questions, I am called in to answer more technical questions.  Having another member of the firm in the meeting allows me to get in and get out with very little time spent.  This system is what allows me to prep over 500 returns during filing season - and still maintain what little bit of sanity I have left.

We have been paperless (or less paper, more appropriately) since 2006 but continue to supply the client with a paper copy.  We have two or three clients that like us to give them digital copies but we still give them a paper copy with the digital copy.

[Randall]

I give the client paper returns.  Review it with client.  Some clients, very brief, usually just mention similarities to prior year, nothing in particular to point out.  Unless there is something to point out. Some might ask some questions, etc.

[Catherine]

My clients get paper copies in a nice folder (the ones Tenenz sells), plus a CD (a nickel a pop) with all their original doc's and all their tax doc's as pdf's, all of those password protected (as MA requires).  CD tucks in to the back of the folder.  Original paper docs go there, too, IF they fit - else the client has usually brought them in in their own folder (or something) and they go back the same way.  In theory, they can chuck the all the paper and just keep the CD.  They all keep the paper, though.

I do go through the return with every client who comes in.  With those who get sent packages by mail, I usually send a review copy of the most-crucial forms by the file portal for questions first.  (That - for the most part - takes care of the "what about all my donations to Goodwill" questions where my answer is "WHAT donations to Goodwill" and saves lots of paper.  And aggravation.)

Also in the paper returns we highlight neither the refund nor the tax due, but rather the "total tax" line (which I call "the amount they get to keep"), since that is what I want people to take note of.  This - plus the comparison page - also helps when the inevitable "why did I get more back last year" questions crop up.  

[kcjenkins]

1 hour ago, Catherine said:

Also in the paper returns we highlight neither the refund nor the tax due, but rather the "total tax" line (which I call "the amount they get to keep"), since that is what I want people to take note of.  This - plus the comparison page - also helps when the inevitable "why did I get more back last year" questions crop up.  

Now that is brilliant, what a great idea!!!  My father, a farmer, always said, and I totally agree, "the slickest trick the government ever came up with was the withholding gimmick."   When people focus on 'how much is my refund', they usually overlook the  "the amount the government keeps", i.e. the amount they paid.  The real dummies actually look at their 'refund' as a gift from Uncle Sam.  Even those who owe tend to look at just the amount of the check they have to write, not the total tax bill.  

[kcjenkins]

Maybe I'm old fashioned, [OK I know I am] but I've always believed that giving the client, even the up-to-date ones, a decent folder with a paper copy on 20 lb paper is just good marketing.  We all tend, when we pay a nice fee for something, to like walking out with something tangible in our hand.  And we like, if we need to show someone our return, banker or such, usually, to have a nice professional looking copy to show.  Even if you give them a flash drive, I'd give them that nice folder with that good-looking copy, too.  It's a form of advertising, and pretty cheap, but when the fee is high, it's especially valuable if that folder is nice and thick.  All flash drives are small, whether it's a 6 page return or a 47 page one.  

[Randall]

I give paper copies in a nice folder.  It's just as much of a hassle for me to put things on a CD or flashdrive.  I have a few clients who don't want the paper copy.  I load it on my Sharefile site and they can get it there.

 

 

[Randall]

11 hours ago, kcjenkins said:

Now that is brilliant, what a great idea!!!  My father, a farmer, always said, and I totally agree, "the slickest trick the government ever came up with was the withholding gimmick."   When people focus on 'how much is my refund', they usually overlook the  "the amount the government keeps", i.e. the amount they paid.  The real dummies actually look at their 'refund' as a gift from Uncle Sam.  Even those who owe tend to look at just the amount of the check they have to write, not the total tax bill.  

This works both ways.  Some people just can't save money and a nice check each year is good for them.  Even at no interest.  Others who have to pay, whew.  How do you get them to have more withholding or make ES payments.  I have a few clients who don't do this year after year.  And they wonder why they have to pay so much.

[Catherine]

4 hours ago, Randall said:

This works both ways.  Some people just can't save money and a nice check each year is good for them.  Even at no interest.  Others who have to pay, whew.  How do you get them to have more withholding or make ES payments.  I have a few clients who don't do this year after year.  And they wonder why they have to pay so much.

I have one lady who over-withholds and uses the refund to fund her IRA contribution.  It's the only way she is certain she can't use the money for other reasons during the year.  I really dislike the tactic in general but for her it makes sense.  She still gets her total tax line highlighted.  

[B. Jani]

I upload to the portal and keep it there. They can print if they want it. Only client gets paper copy are non internet client.

[RitaB]

Paper (22 lb) copy.  Nice folder.  Discuss until client is satisfied with explanation or gives up on understanding.  Hard to tell.  I am very patient and know you explain thoroughly when people ask questions.   And try to use words they understand.  I think some figure out that they will never figure it out, but if she is willing to try this hard, I'm going with whatever she says. Always tell them to call if you think of something else to ask.  No problem.  

Many, perhaps most, don't want to know anything, just tell where me to sign.

[Catherine]

6 minutes ago, RitaB said:

Discuss until client is satisfied with explanation or gives up on understanding.  Hard to tell.

Exactly, @RitaB!  They are signing under penalty of perjury, so we at least have to try for as long as they are willing to listen.

[Lion EA]

About the same for me.  Except, I stopped using nicer paper a couple of years ago.  As I realized how many never open the folder, I stopped using the heavier stock.  I explain until they tell me to stop, and then tell them they can call me with any questions or issues.

[Jack from Ohio]

2 minutes ago, Lion EA said:

About the same for me.  Except, I stopped using nicer paper a couple of years ago.  As I realized how many never open the folder, I stopped using the heavier stock.  I explain until they tell me to stop, and then tell them they can call me with any questions or issues.

Same here.  Cheap copy paper and a simple envelope that allows the client's name and year of the return show through.  Nothing else.  Most disappear into a black hole once they leave my office.

[Yardley CPA]

A good number of my clients are starting to send me their information electronically (secured scanned pdf's to my email.)  Some still want an appointment, others drop off an envelope of information into my drop box.  Regardless, when I complete their return, I send the vast majority (except for some  older folks who don't have email) an email containing a copy of the return, the 8879's and an informational sheet that provides specifics (refund, amount due, anything else I may want to point out) on their return.)  I may call the client if their tax situation is significantly different than a prior year to discuss it further. I also prepare an estimate for the  current year so they are prepared to handle any withholding issues.  If all looks good, I ask them to print off the 8879's, sign them and return them to me.  I then E-file the returns.  Once accepted, I prepare a packet of information and mail it out to them. With in the packet is my invoice. 

I have a few who are slow to pay and a couple who still have a balance due from last year.  For the most part, everyone pays.  I am considering changing my process and including my invoice in the email I send to the client.  We'll see if that happens or not.  

 

[Terry D EA]

I have a separate monitor on the desk that I turn on for the client to view their returns. At that time I go over every line on the tax return that has information pertaining to their specific circumstance. The paper copies 20Lb good paper, and put them in a nice folder, like Catherine, I use the ones from Tennez. Also, I agree with Jack as a lot of my clients seem to misplace their copies. However, there is something to be said for professionalism and I have had many banks in my area comment on how neat the client's documents are. Just to add, I have a client who spent an enormous amount of time serving on a Jury for tax court cases and he told me to never stop reviewing the returns as the folks that used the excuse their preparer prepared the return and they trusted them didn't hold water with the IRS. Their comment and question was why didn't you the taxpayer know what was on your return. I prefer my clients know what is on their return. Yes, I have those that say just print it I trust you, but I make them sit through the review anyway.

[RitaB]

10 hours ago, Terry D said:

The paper copies 20Lb good paper, and put them in a nice folder, like Catherine, I use the ones from Tennez. Also, I agree with Jack as a lot of my clients seem to misplace their copies. However, there is something to be said for professionalism and I have had many banks in my area comment on how neat the client's documents are.

I agree, Terry, I want to hand my clients a nice product.  I admit I have been guilty of thinking "all my clients" must lose their copies. But that's a severe reaction under duress to the five to ten out of 385 who ask for copies later.  Sorta like that one Algebra II class that I thought was "full of delinquents" because three kids out of 27 sucked the life out of me. The great majority we don't have to babysit after we're done; it's just those other little derelicts that make our jobs tough.  And they don't lose their copies; they're just too lazy to locate and/or copy them.  If it gets to be a habit, I just quietly increase their fee the next year.

[rfassett]

I guess I did not mention in a previous post:  We do print the return on decent paper - the printer / copier like this a lot better as well.  We put the client copy in a nice folder and envelope that we get from Greatland.  We use two different folders.  If the work papers are too voluminous, then we use a folder with no back pocket and put the work papers in a separate envelope.  For those with fewer work papers, we just put those in the pocket at the back of the folder.  It is a very nice and professional presentation.  The folder is not oversized and will fit nicely in the client's letter size file cabinet.

[Catherine]

26 minutes ago, RitaB said:

  If it gets to be a habit, I just quietly increase their fee the next year.

Since I instituted a $30 paid-in-advance fee for printing out and mailing a new return copy, the incidence of clients who cannot find their copies has plummeted to zero.  I do gets calls or emails -- when I explain the fee (and note my handy-dandy "pay my fee" button on my web site), the "I'll take another look and get back to you" crowd somehow never has to get back to me.   

[Abby Normal]

We implemented bright orange 10x13 envelopes with our return address and 'TAX RETURNS' printed in large letters in the center to make it easier to find in that drawer or pile or box the client keeps it in.

Giving clients CDs with PDFs of returns and records, cut our requests for copies of tax returns to near nil.

[RitaB]

52 minutes ago, Abby Normal said:

Giving clients CDs with PDFs of returns and records, cut our requests for copies of tax returns to near nil.

See, this would increase the incidence of clients asking me to buy them a computer. 

[Roberts]

I do the envelopes like Abby except mine are all just manila - not bright colors which actually sounds interesting. I do 9x12 envelopes for easy returns just because they fit within a file drawer far easier. Printed copy for everyone. I'd estimate once I put it in the envelope, 90% don't open it again. I will review the return personally if they want it - VERY FEW want it.

I personally keep everything in an envelope for my own return simply because it's so easy and clean to file it away. Nothing EVER falls out and it's upright and clean in my filing cabinet. If we need last years personal property tax receipt - I know exactly where it is located.

[kcjenkins]

On 2/23/2016 at 6:08 AM, Abby Normal said:

Giving clients CDs with PDFs of returns and records, cut our requests for copies of tax returns to near nil.

But the new computers don't have CD slots any more, so the only viable option going forward for electronic copies is flash drives.  

[Jack from Ohio]

41 minutes ago, kcjenkins said:

But the new computers don't have CD slots any more, so the only viable option going forward for electronic copies is flash drives.  

Any computing device without an optical drive is a toy and not a computer.