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And Here We are... Tax Season

Jan 15th 2018
tax busy season

Every first week of January, I go through the office singing, set to the Christmas song, It’s the Most Wonderful Time of the Year. The lyrics are:

     It’s the most wonderful time of the year
     There’ll be money a flowing
     Clients a calling
     And daddy will stand up and cheer
     It’s the most wonderful time of the year

We are honestly very blessed. We have taken a cyclical business, and learned to make money all year. However, tax season is a time when we make about 40 percent to 50 percent of our income for the year. It’s a major influx of cash, and after all of these years, we finally have it down.

Around March we prepay our rent for the year. Our landlord loves us. I pay myself and my wife large sums of money that we use to max our retirement plans, we fund our Health Reimbursement Account, prepay our monthly health insurance, and any other monthly bill that we are under contract to pay.

Then in April, as an insurance policy, we open a CD with our bank that has a six-month term, and put about $20,000 in it, which really comes in handy in November and December, when income tanks. We use tax season as a time to sell clients on other services: estate planning, monthly accounting, tax planning, etc. Those are all of the good things about tax season.

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Replies (3)

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By apeet310
Jan 16th 2018 17:21

Great article! Although I must admit, you nearly lost me during your first few paragraphs describing the joys of tax season. Haha.

This will be my 11th tax season, and 8th as a CPA. I often find myself doing things for free for "friends and family," and undercharging for services that I really shouldn't be. My goal this year is to cut that out... so I really appreciate your timely advice. Thank you!

Thanks (1)
Replying to apeet310:
Craig Smalley
By Craig W. Smalley, EA
Jan 16th 2018 22:04

Think of it like this. Your time is a commodity that this person is willing to pay $x.xx for, during a time of the year when everyone wants your time. In July, you can chit chat, do things for free, etc. You could do this thing for free, or you can do this thing for $1000. Who gets your time?

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By jferguson
Jan 16th 2018 22:52

Hilarious!! And oh, so true!

A sense of humor is essential to get through a tax season.

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