Holistic Model of Tax Preparation

Holistic Model of Tax Preparation
... recognizes that there is interplay between two forces in almost any endeavor, and it takes advantage of them to their fullest capacity. Some people call these two forces left- and right-brained thinking, analytic and holistic processing, logical and intuitive works... Yin and Yang.

Yang represented by the logical, systems-oriented, analytic and mathematical thinking. Yin is a grab bag of emotions, style, context, opinion and personal interaction. 

Step 1.  The Engagement (Yang): the terms of the tax appointment are set, including appointment time, place, price and parties present.

Step 2.  The Questions (Yin): the client comes to the appointment with a year's worth of questions and concerns. The preparer will have alot of questions as well-some obvious, some not so obvious. Asking the right questions in this stage is critical to what follows.

Step 3.  Number Crunching (Yang): Forms are presented and entered into the software, boxes are checked, information is sorted based on relevance, and the computer does its job and gets a preliminary answer.

Step 4.  Reality Check (Yin): The preparer takes a look at the finished product and asks himself the basic question, “Does this look right?” Sometimes the answer is obvious, and sometimes the preparer realizes that further research is in order. The preparer may need to contact the client for follow up information, but it’s critical in obtaining the best answer. In some cases steps 3 and 4 will need to be repeated several times until the preparer is satisfied.

Step 5.  Sign, Seal and Deliver (Yang): Assuming that all of the nagging questions have been answered as best as they can, the return is finally printed, signed, and presented to the client.

Step 6.  Absorption and Clarification (Yin): The client will review the return and try to make sense of it. Ideally, since it is their finances on the line, clients should take a good amount of time checking over their tax return. They may have more questions, and those will need to be dealt with. Or, they may have new information, which will throw the process back to stage 3. But only when the client has absorbed all the information can they proceed to the next step.

Step 7.  Acceptance (Yang): The client must determine that the return is accurate. They must sign it. They also must decide whether or not the preparer was worth the money and if they’ll use him or her again next year.

Step 8.  Off Season (Yin): After the preparer and client part ways for the rest of the year, new questions and new circumstances are sure to arise. The preparer needs to figure out which new tax laws will have an impact on the client and decide what tax classes, publications and seminars will be most beneficial.

Notice that these eight steps go back and forth between question and answer, chaos and order, expedition and discovery, and client and professional. Notice also that the process is the same that any knowledgeable professional would apply to any client.

Contributor: Dan Connors, EA - Buenger/Doyle Tax Service in Granite City, IL, NATP TaxPro Journal, Fall 2011