81: Impacts on the Tax Profession in 2022

It comes as no surprise that recent events have had significant effects on the economy and businesses as a result. But with inflation causing soaring prices, many tax practitioners have experienced significant impacts on their professions.

What challenges are tax practitioners experiencing in 2022, and how can they successfully navigate the effects on their professions?

On today's episode of the Taxgirl podcast, Kelly is joined by Tony Novak to talk about the impact of inflation on the tax practitioner profession. Tony is a serial small business entrepreneur in the Philadelphia area. He founded MedSave, a first-generation insurance exchange, and Freedom Benefits™, a benefits firm for contractor's business. He is a graduate of Delaware Valley University (BS, 1982), Temple University (MBA in Finance and Accounting, 1985), and Villanova Law School (MT, Compensation Planning, 1995). He primarily served the construction industry, including a term on the board of the National Association of the Remodeling Industry. Now his passion is promoting rural business redevelopment in South Jersey, promoting tax-free small business investments in restorative aquaculture, sustainable fishing, and waterfront recreation. He operates a sole practitioner CPA firm steps from the beach at Money Island, New Jersey that serves other entrepreneurs and investors.

Listen to Kelly and Tony discuss impacts on the tax profession in 2022:

• In the competitive world of tax practices, it can be hard to survive as a small businesses accounting firm. Kelly asks Tony for his opinion on how these professionals can adjust their practices to stay in business.
• How can tax practitioners identify the best billable rates for their service in a society where asking others is inappropriate?
• Kelly and Tony discuss the stress that individuals in the tax profession experience and its effect on their health, personal lives, and career decisions.
• Many people view hiring a tax practitioner as a discretionary cost rather than a necessary one and feel more comfortable with price shopping and deduction shopping. Kelly discusses this and its relation to the tax profession's stress on practitioners, especially those handling small businesses.
• Tony and Kelly speak on the importance of managing expectations and communicating effectively with clients. They touch on the innovative ways that technology is being used in recent years to benefit small businesses, practitioners, and their communication.
• What is the best method for making billing adjustments in the tax profession? How do billing methods relate to this regarding hourly rates and flat fees?
• In our increasingly cost-conscious environment, how can tax professionals navigate the decision to increase their rates and the effect of their rates on the quality of their services?
• Often, people don't consider the additional value that employing tax professionals can provide to them in the form of ensuring tax compliance and planning for their futures. How has this influenced the livelihood of tax professionals?
• Kelly and Tony discuss pivoting and how making adjustments to one's practice can be beneficial in an economy that is constantly changing.

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

You can find out more about Kelly here and you can follow her on Twitter, Facebook, Instagram, and Linkedin.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl

Tony’s Website – Tony Novak

Tony’s Twitter – @TonyNovak

And some folks Tony would like to acknowledge:

• Sebastian Meine, PhD --  be.a.wealthy.expert
• Joe Cass: "do taxes, make money" -- www.facebook.com/joe.cassarino.7
• Jo Colontonio, MBA, CPC -- https://ignitebusinesspartners.com