This course is focused on equipping new and seasoned tax practitioners with fundamental workpaper techniques proven to save time, increase compliance profit margins, and ultimately give practitioners the opportunity to offer value-add services to their clients.

1. WORKPAPERS
B Y R E G R O U P T A X
P R I N C I P L E S O F T A X
1

2. 0 1
Introduction
Two CPAs with 15 years + public
accounting experience
Started company in 2012 that
helped tax pros scale their
practices by providing key data
entry services
In 2016 launched SaaS based
tax workpaper app (regroupTAX)
designed to increase efficiency
and workflow procedures
2

3. 34%
THE TOP
CONCERN FOR
FIRMS OF ALL
SIZES
Workflow
Efficiency
3

4. AGENDA
Types of Workpapers: Ind. vs. Bus.
6 Principles of Good Workpaper Techniques
Other Tips/Tricks to Maximize Efficiency
Questions
Short Demo
4

5. POLLNG QUESTION #1
What does your current practice look like?
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6. S T A N D A R D I Z E D
F O R M S
basic set of low-level
functions can be completed
for each return and every
workpaper file looks the
same
V A R I O U S F / S
F O R M A T S
different formats make it
difficult to shift tasks and
effectively create a
workpaper file that's
consistent across the board
INDIVIDUAL vs BUSINESS
6

7. Average tax preparation fee for
a typical individual return
(1040)
Average tax preparation fee for
a typical business return
(1120, 1120S, 1065)
$273 $743
Business returns = more room for profit
7

8. 1. DEVELOP INTERN
PROGRAM
2. OUTSOURCE DATA
ENTRY
3. UTILIZE
TECHNOLOGY
COMMON
GOAL:
Shift low-level tasks to interns;
let them scan, organize and
input info
Onshore and offshore
outsource options;
GruntWorx, SurePrep, etc.
Most tax software offer an
OCR add-on that will scan and
populate; ProSystem fx Scan,
etc.
Eliminate data entry and create
consistent workpapers at a
significantly low price
INDIVIDUAL TAX RETURNS
ways to increase efficiency
8

9. A C C O R D I N G T O
I N T U I T , E A C H
B U S I N E S S R E T U R N
T A K E S 5 . 1 H O U R S
O F D A T A E N T R Y
5.1
hours
9

10. BUSINESS TAX RETURNS
ways to increase efficiency
GOOD
WORKPAPERS!
Requiring extensive, organized and indexed working papers or PDF files may take about 20 minutes
per return but can reduce the time it takes the preparer to actually work on the return by
approximately 50 minutes, and reduce the reviewer time by about a half-hour, resulting in a net gain
of one hour per return. For a workload of 400 returns, this can save the equivalent of one fulltime
person during tax season.
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11. BE CONSISTENT
P R I N C I P L E # 1
Design a set of techniques that work for you and your firm
and stick to them.
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12. SAVE A COPY
P R I N C I P L E # 2
Before you even think about making adjustments to the
financials, save a copy of the Balance Sheet and Income
Statement as received from the client or their bookkeeper.
­ "PBC"
12W W W . R E G R O U P T A X . C O M

13. DESIGN AN INDEX
P R I N C I P L E # 3
Designing an index system along with a set of workpapers
required for every return allows you to standardize the prep
process and eventually delegate low level work to staff
and/or interns.
13W W W . R E G R O U P T A X . C O M

14. POLLNG QUESTION #2
What is your role within your practice?
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15. AJES ONLY!!!
P R I N C I P L E # 4
If you go into the QB or Xero file and start changing
transactions, you are going to lose your trail and create an
extremely frustrating situation for yourself. By recording
everything as an adjusting entry, you create a nice trail and
give yourself the opportunity to present the changes to your
client, an auditor, a partner at the firm, etc.
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16. TOP 3 CHECKLIST
P R I N C I P L E # 5
Come up with the first 3 steps you take on every return.
Need some suggestions??
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17. CHECK.
CHECK.
CHECK.
does retained earnings match prior year return?
are the financials complete through year-end?
does the balance sheet tie to the income statement?
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18. LEVERAGE TECH
P R I N C I P A L # 6
There are plenty of software programs designed to reduce
inefficiencies. Each has it's pros and cons.
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19. Leveraging Technology to
Enhance Client Service
THE PCPS CPA FIRM
TOP ISSUES SURVEY
2 0 1 1 - 2 0 1 5
Top 10 Issue:
19

20. OTHER TRICKS...
Prior year file
Book-to-tax reconciliation
Fixed asset detail
Referencing
State tax detail + estimated payment schedule
Tax-related questions
20

21. PY FILE
Make it a habit to quickly review the prior year file before you
begin tax prep for the current year. This will give you a
roadmap of what's going on with the client.
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22. BOOK-TO-TAX
Paint a clear picture of how you moved from the book
financials to the tax return. Use this reconciliation to explain
the tax return to your clients.
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23. FIXED ASSETS
Tie out the depreciation schedule to the assets on the books.
Make sure your client confirms any assets that are no longer
in use or have been disposed of.
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24. REFERENCE
Reference determinations you made on the tax return. We
recommend to To/From system.
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25. STATE TAX + EST.
Avoid future notices by confirming the state taxes and
estimated taxes paid during the year.
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26. TAX RELATED ?'S
W W W . R E G R O U P T A X . C O M
Brainstorm with your staff before tax season to compile a list
of tax­related questions to ask every client.
Think new credits, etc.
26

27. POLLNG QUESTION #3
What product do you currently use for business workpapers?
27

28. CONSISTENCY IS KEY
28

29. CREATE YOUR OWN
WORKBOOKS
Use the off season to
create an excel workbook
and setup each client's
financials + formulas.
EMBEDDED OR
ENGAGEMENT
Most tax software offer
embedded functions and
addt'l engagement software
for purchase.
TAX WORKPAPER
APPS
Apps that are designed
specifically to create tax
workpapers allow for flexibility
in acctg/tax software choices.
Recommendations
for consistent workpapers
29

30. PROS CONS
Excel Workbook
-Low Cost
-Minimal Training
-Customize Reports
-Significant Setup Time
-Human Error
-Manual Upkeep
30

31. PROS CONS
Embedded Functions
-Integrates w/ Tax
Software
-Minimal Data Entry
-Familiarity
-Lack of Updates &
Maintenance
-Inconsistent Output
-Future Conversions
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32. PROS CONS
Engagement Software
-Integrates w/ Tax
Software
-Minimal Data Entry
-Familiarity
-High Cost; Difficult to
Implement Firm-Wide
-Designed for Audit
-Future Conversions
32

33. PROS CONS
Tax Workpaper Apps
-Software Neutral
(Acctg + Tax)
-Implement Firm-
Wide; Consistentcy
-Low Cost
-No Direct Integrations
w/ Tax Software
-Web-Based: Pro or
Con?
-Breakeven
33

34. UTILIZE TECHNOLOGY
C O N C L U S I O N . . .
82% of top 100 accounting firms tie new tech to
client retention and firm growth
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35. T H E B E N E F I T S
W W W . R E G R O U P T A X . C O M
"The value of technology is best seen in its ability to automate routine or
otherwise manual processes. What does this mean in practical and beneficial
terms for your firm and clients? The consulting firm McKinsey anticipates that
automating work processes that used to be done by human labor will allow more
meaningful work as routine or repetitive tasks are replaced."
35

36. POLLNG QUESTION #4
Of the following issues, which is most pressing for your
practice?
36

37. D E M O
W W W . R E G R O U P T A X . C O M 37

38. RECAP
GOAL
-Increase Workflow
Efficiency
HOW
-Consistent Workpapers
-Utilize Technology
38

39. Automating or even eliminating mundane or routine tasks
like manual data entry with computers or software programs
frees up employees’ time to actually use their brains for
things that computers or software programs can’t do, like
utilizing their creativity.
• • •
N I C K L O W E N S T E I N ,
D I R E C T O R I N S A G E W O R K S ’ A C C O U N T I N G D I V I S I O N
39

40. POLLNG QUESTION #5
What was the most valuable part of this webinar?
40

41. thank you.
Rachel Gregg, CPA
rachel@regrouptax.com
Emily Dear, CPA
emily@regrouptax.com
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