Tax Accountants Offer Clients Service, Strong Returns

Faced with complicated tax laws and a tough economy, businesses are expecting their accountants to do more than prepare a tax return every year. These professionals are looked upon as trusted advisors, who can assist businesses with their growth and expansion. “Everybody during this change in the economy is worried about where their dollars are going,” said Greg Hutchins, a partner in the Westlake Village office of Holthouse Carlin & Van Trigt LLP. “Taxes are a considerable part of that and need to be managed more than ever.” Throughout the San Fernando Valley region, firms of all sizes do tax work. At Holthouse, Carlin & Van Trigt, about 60 percent of the firm’s revenues comes from the tax side. At Breard & Associates Inc. in Northridge, the accountants spend only about 20 percent of their time handling tax matters for small- and medium-sized businesses, said managing partner Kevin Breard. The firm charges $2,000 for tax preparation, while an audit can cost $10,000, Breard said. “Tax is the cherry on top of the ice cream,” he said. “The sundae is the audits. That is where the money is.” Tax accountants often are described as meticulous and detail-oriented. There is the perception that, because of all the related codes and regulations, tax work involves more legal understanding, as well. “They are great technicians,” said Gary Condie, president of Condie & Wood, CPAs APC in Valencia. They are also voracious readers with a high comprehension rate, taking in every comma and semi-colon in every sentence of the ever changing tax code, Breard said. Staying on top of the additions or deletions to the codes is very challenging, accountants say. The Internet is a great resource for information about changes to the tax code, and accountants often receive e-mail alerts about changes in tax laws to help them easily track related information. In preparation for tax season, the staff at Breard & Associates will spend a full day being updated on the tax code. “It is a professional responsibility to keep up with the rules and regulations,” said Ray Calvey, a partner in the Sherman Oaks office of national accounting firm Crowe Horwath LLP. Industry professionals say accountants that take a proactive approach to problem solving and tax matters best serve their clients. This requires accountants to spend time with business owners and to learn the intricacies of their operations, they say. When it appeared the tax cuts started under President George W. Bush would expire in late 2010, accountants at Holthouse Carlin & Van Trigt were recommending accelerating income for their business clients, so it was taxed under a lower tax rate, Hutchins said. The tax cuts were later extended into 2012, and when the expiration date comes around again, Hutchins said he anticipates repeating the exercise. A tax accountant looking out for his client’s best interests shouldn’t wait to be asked about solutions to a problem, Condie said. “Anticipate a little,” he said. “Don’t be reactive and they will love you for it.” Tax accountants say one challenge is handling clients who are given incomplete or wrong information about how to save on taxes. When a client calls to say they heard or read some bit of tax savings advice, Condie said he will gently inform them they are wrong and handle it in such a way to maintain the professional relationship. Breard finds these types of clients to be a drain because they require a lot of attention for little monetary return. “A minority of clients do it, but (it happens) enough to make it irritating,” Breard said. “You cannot bill for it.” Annoyances aside, area accounting firms say tax practices are a solid business, especially those that are looking to grow their business. Breard & Associates will complete this year acquiring a tax practice for high net worth individuals from a Woodland Hills firm, Breard said. He declined to be more specific, as the process still is underway. Crowe Horwath has been hiring tax accountants for its Sherman Oaks and Orange County locations. “We bring them to Southern California from other offices because the opportunities are here for substantial growth in the marketplace,” Calvey said.