What Is the New Normal for Practitioners in This Environment?

I'm not sure what the new norm is; but I can say that the economy has greatly affected my practice. I've lost several clients, had an enormous increase in cancelled appoints and clients who would normally pay their invoice from me in several days are now running over 30 days. I would have to go out and get a job if there were any!

I know 2008 was a great year for all my clients. This year 2009 has been very very slow for all concerned. I live in a community that is driven by the oil and gas industry and tourism, both have just about died. Tax season was very slow this year. I feel people will relax a bit this summer, but not go too crazy and things will get back to a more normal feel. Hindsight 2008 was a great year!! Didn't really realize it at the time.

I concur! 2008 was a good year but we are now feeling the effects of the slowing ecconomy. What I am finding is that my clients are taking a new found interest in their bookkeeping as it relates to taxes. They are more concerned with making sure that they are getting every last deduction they can so their tax bill is as low as possible. Consequently our relationships with tax preparers are becoming stronger which in turn has been a good source of new business!

We had more clients turning to software such as Turbo Tax to do their taxes this year. Although we still processed a good number of returns, we definitely noticed some attrition. We are also experiencing fewer inquiries about QuickBooks assistance and/or training from potential new clients. But we also feel that this is a temporary situation and with the tax laws becoming even more complex, we anticipate that we will see a resurgence of new business.

Andrea

Fortunately I didn't see a decrease in clients this tax season, but I have noticed a slowing down in payments. I've had quite a few questions about some of the new tax laws. I have to admit that I find myself being extremely reluctant to answer those questions because I'm not too sure what this new administration has planned. Their willingness to override the constitution and undermine our capitalistic prosperity makes me extremely uneasy to be working in the areas of tax and accounting.

I lost some clients who decided to prepare their own returns. Fortunately they were replaced with new clients with more complex situations.

I have found more concern for fees. Client education helps these folks to see the value of my services.

Somebody tell Junelljo there has been a chnage in the White House. The constitution is now being respected. Now if we can only get rid of socialist practices like payments to farmers to not grow antything. I am glad there is a shift to taking care of the greater population and reducing corporate welfare. Limits on shady tax deals are also a welcome new direction.

I catered to environmentally friendly contractors, manufacturers, and small businesses. Sadly, many of my clients disappeared due to the housing market and economy. I decided to take a full time management position at a larger company in business operations, however, I still have some clients (landscapers, environmental enginnering firms) that are doing well and use my services. I continue to stay in touch with all my old clients and hop that when things turn around, I will be there to serve them again.

I added 83 new clients in filing season. Had six business clients go out of business due to the economic enviroment. I encourage clients to use quick books so I can work with the data they input.

I have lost 50% of my revenue. I am finding that my clients are trying to do there own books. Even though I offer a support plan, the increase in that business is increasing but very slowly. I have refocused my business more to the payroll market and support and training.

We have lost a few clients for tax prep, as most of you have written, and they were the simpler ones. Our bookkeeping and accounting clients are definitely paying slower than last year. We have had 2 clients whose cash flow was tenuous at the end of 2008 go out of business completely with fees in arrears. We have started marketing to stronger businesses with the idea that the more complex and much higher taxing that will be occurring will create a need for really good tax planning and of course that begins with pristine books.

I believe that our clients are more in danger from increased taxation than straight market forces at this point so we are tailoring our services that way.