Tax Return Assembly

[ILLMAS]

I am just curious, do you make copies of all of your client info for your copy? I am getting fustrated with so much copying that it takes me longer to assemble a tax return then doing the actual tax return. I am just wondering what other tax prof. do?

p.s. I don't make copies of all the receipts of anything, I just write the total on one receipt and copy it.

I timed myself for one just one tax return for today, simple return 1040, Sch A and state return:

10 minutes entering data

5 minutes reviewed and double checked numbers

20 minutes making copies of the info, making a copy for my file and assembling the tax return.

[kcjenkins]

If you really want to keep all that, [i don't] then you should invest in a good scanner, so that you can quickly scan in the documents you want to keep, and store them as pdfs, on your computer, not make paper copies which then fill up your file cabinets. The ATX Document Manager will let you easily associate those items with the client's tax return.

But think about it. Why do you want to copy all that stuff? Staple it into the client's folder, behind the return, and let HIM be the one who stores it. It's not your responsibility to store all that stuff for him. And your TIME is the most valuable resource you have in this business, because it is the only thing you can not buy more of, nor buy something to help you stretch it. Think of the extra returns you could do in that wasted time. Or the rest and/or fun you could be having in that time.

The other alternative is to hire part-time help to do the copying for you. But in the long run, that is more expensive than a good scanner would be.

[ILLMAS]

If you really want to keep all that, [i don't] then you should invest in a good scanner, so that you can quickly scan in the documents you want to keep, and store them as pdfs, on your computer, not make paper copies which then fill up your file cabinets. The ATX Document Manager will let you easily associate those items with the client's tax return.

But think about it. Why do you want to copy all that stuff? Staple it into the client's folder, behind the return, and let HIM be the one who stores it. It's not your responsibility to store all that stuff for him.

I thought had bought a good HP all-in-one printer, but I hate the damm scanner, it creates a new file for everypage, maybe I am missing something, but I went back to making copies. I will definetly give up on making copies of my client info next year. I will let them keep track of it, and you are right my cabinet is ready to explode.

[jasdlm]

I'm not as sophisticated as KC. I stack up returns and pay a college student $8/hour to copy (yes, backup docs also), assemble return, etc. She is fast and efficient. It's worth it to me. I also have needed to refer to that backup more than once when clients have questions down the road. I have a colleague who scans the way KC does, and he swears by it, but I'm not that sophisticated yet.

[kcjenkins]

You can tell the HP scanners whether to make a new file of every page, or to combine into one file. Which model do you have? HP has all the manuals available in pdf format, so you can download the manual, and use 'Find" to quickly find where to select how it saves the scanned forms. That is usually faster than trying to read the printed manual, I find.

[grandmabee]

I'm not as sophisticated as KC. I stack up returns and pay a college student $8/hour to copy (yes, backup docs also), assemble return, etc. She is fast and efficient. It's worth it to me. I also have needed to refer to that backup more than once when clients have questions down the road. I have a colleague who scans the way KC does, and he swears by it, but I'm not that sophisticated yet.

I copy everything on the return. I think you must keep a copy of the w-2 if you are efiling I hire someone to copy the doc's and tax return.

[RitaB]

I copy everything on the return. I think you must keep a copy of the w-2 if you are efiling I hire someone to copy the doc's and tax return.

I copy everything I have used to complete a return. I also copy information that I don't need this year but I may need later, like info on mutual fund or stock purchases. I just had a client pick up her return on which she had stock sales with no basis provided. She knows nothing about what she's doing, and her records are a train wreck. Thankfully, I had copied all her info on past purchases, so I had what I needed. I would be waiting on info from her for weeks, I know.

Not all clients are as helpless, I know. And, I respect those of you who require your clients to be totally responsible. I find that with my personality and the lack of understanding of what is needed on the part of MANY of my clients, it is easier on me to do things this way. Yeah, I have a lot of paper. It's worth it to me.

Also, I have some clients that I know would blame me if there was any kind of problem with their return. If I have a copy of everything, it's pretty simple to correct any inaccurate "opinions." A guy came in with his crap Tuesday, and had $11,300 in "expenses." Ok, what?

"Well, I noticed that last year, it didn't really matter that I had things divided up," he said. Instead of arguing about it, I just got his file out, flipped to his handwritten figures, and matched each one to an entry on Sch C, and there were many. I also pointed out that there is no line item on the schedule C for "expenses." He will come back with his "expenses" categorized. And, I doubt HE will tell ME how I completed last year's return again.

[RJM]

I quit copying most client stuff about 5 years ago. Learned that brokers and banks are required to keep all statements, transaction documents, 1099s, etc for at least 6 years, so they can always be retrieved in the statute of lim's period. I put all the client data into 9 x 12 envelope and insert behind the client letter. The only things I copy are weird securities purchase confirms, for basis backup in later years, and I always copy k-1s. These go into a permanent file. For 2007 tax year, I stopped making a paper copy of returns for my file, relying on pdf's only. This has saved lots of time, paper, toner. And I have a larger wider monitor now, so I can easily view last year's pdf return while keying in data for this year. To be cautious, I have a large-screen laptop on my desk which I can use if the desktop ever crashes, but now I am using the laptop to do most tax research. Most of the changes I have made in processing have come from suggestions on this and the old ATX board. Not totally paperless, but getting closer each year!

PS- I always keep the fed and state copies of W2s also, in case there is an e-file failure and I need to prepare paper returns quickly.

[mcb39]

I have found that the less I copy, the sorrier I am later. I copy everything out of the ordinary and have always copied stock purchases and sales. I am not sophisticated either. I gave my scanner away because I never did have the time to figure out how to use it. I guess you could call that "being in a rut", but I haven't changed my methods much over the years. Had a client give me several heavy metal file cabinets which are in the basement; but info is there when I need it.

[RitaB]

I have found that the less I copy, the sorrier I am later.

Yeah, most of my clients would never, ever try to pull anything on me, like saying that I lumped their detailed expenses together, but when it does happen, I can't tell you the satisfaction I get when I pull out information, in their own handwriting, to "refresh" their memory.

Also, I'd rather print copies of stock purchases than deal with brokers, or go thru the whole drill explaining to clients what I need, and hear them ask, "Can't you just look it up on your computer?"