ProSeries Basic and Professional on one computer?

[jpmh]

I have scaled back my business starting for tax year 2021 and will be switching from ProSeries Professional to Basic for most returns. I will still have one 1120-S return and was told I can use Professional on a pay-per-return basis for that.

Will I be able to load both versions (Basic and Professional) on the same computer simultaneously?

Or will I need to uninstall Basic, then install Professional when needed?

Or use 2 computers - one with Professional and one with Basic?

Thanks in advance.

[TaxGuyBill · Accepted solution]

You can have both on one computer.

[jpmh]

Thanks so much. That's a relief!

[dkh]

I'm curious about your process to scale back your business.  I've considered doing the same.  Think I probably should have sent letters to clients already.   Any advice to share?

[jpmh]

I knew the first question I would get would be about a referral. Consider this before letting your clients know you're scaling back.  Find someone you trust who is willing to take on your clients. Also - don't say "scaling back" to the clients, but rather tell them you are getting out all together.  Otherwise you will get many requests to handle them "just one more year". I have had a few of these even though I told them I was shutting down completely. I've told them I won't have the software to handle it, so they really need to focus on moving on. But, again  - have a recommendation for someone to pick up where you left off. To soften the blow, I have offered to be available to the client and the new preparer for any transition issues that come up. Coordinate with that person on a transition plan. You can probably even establish a referral fee or commission plan with the new preparer to get a little extra income for the next few years. There are lots of models for this. The plan I have with the new preparer is that she will pay me 1/3 of the income she gets from my referrals over the next 3 years.

As for timing - I held off until last month (October) to inform my clients about the transition. Of course, I already had the transition plan in place with the new preparer ahead of time, so it was just a matter of letting folks know about it. I felt letting them know in Oct was early enough that if they wanted to find their own way and not use the person I'm referring them to, they have plenty of time to find someone else. But also it was close enough to tax time that they might just go with my referral recommendation. After all - there is income for me expected if they do that, so it is something I wanted to encourage.  I think if you can put a plan in place before the end of the year, you could still pull this off with a notice to your clients in December or early January about the transition.

Bottom line - I think the timing is about right to inform clients now that you are backing off of 2021 tax prep work. But I strongly recommend you have a referral or other transition plan in place for them before doing so. 

[TaxGuyBill]

Obviously circumstances vary tremendously and it also depends on why and how you want to "scale back", but another possible option is to let clients know that due to the significantly increased complications of tax law, your fees will be going up xx% next year (a fairly large percentage), and that you understand if the client decides to go elsewhere.  

You will lose some clients that way (often the more annoying ones), thereby 'scaling back' on your business, while increasing your profit for your remaining clients. 

[mdtao31]

HI dh,i scaled back a few years ago and did send letters.{gotta admit i cherrypicked) the ones

i wanted to keep, but it work out well

regards,LARRY

stay safe

[bulldogcpa]

Here's my letter, sent out in August and September to individual income tax clients.  The crappy clients got a slightly different letter, without the referral.

XYZ Taxpayer

               RE:         Termination of Tax Services

Dear XYZ,

The past 18 months, encompassing two tax seasons have been intense, eye-opening and cause for somber reflection.   I have decided to substantially reduce my workload.  I am writing this letter now to give you adequate time to engage a new preparer and address any time-sensitive issues.

Please accept this correspondence as my notice to you that I will not be responsible for preparing your tax year 2021 federal and state income tax returns and all professional services will cease as of today.

I do not retain original documents and all originals have been returned to you.  I have provided copies of all previously filed income tax returns in either hard copy or PDF format.  Client copies are also available via the Intuit tax portal.  If additional copies are required, please email me directly at xxx.com and provide your cell phone number (required for encryption and two-factor authentication). Please know that I will never release your returns to any third party without your prior written direction and specific consent.

I have been in contact with my quality control CPA firm:  xyz firm and have made referral overtures.  I engage xyz firm when my work requires a quality control review.  It is a bigger firm yet retains a personal touch.  Please call xyz at (XXX)  or email xyz firm.  This referral is not compensated; that’s how strongly I feel about xyz firm. 

This is a very difficult and deeply emotional personal decision for me, and I want you to know that I have enjoyed working with you.    I wish you good health and success in the future.

Sincerely,

William P. Seth, CPA

[dkh]

Thank you all for your helpful information.  

[dkh]

@TaxGuyBill   I like your thinking - less clients but more money.  My luck I'd still have all of the annoying clients and few of those I enjoy.

[dkh]

@mdtao31   Did your letters include a referral business for the clients ?     

[bulldogcpa]

For the past 20 years, at the end of each tax season,  I would terminate five clients:  slow pay, late documents, complain about the bill, whatever... but five.  The last couple of years have been increasingly difficult.  With all that winnowing over the years, I had created a really good client base that wanted to do good work.  It was enjoyable.   So this year, when i decided to scale back and refer out 50 clients, it was truly emotional. 

I'll continue on for 2-3-4 more years with retainers and bigger business clients that want more higher end service and now i will have more time to deliver.  I plan to refer out most of the remaining 1040 only clients over the next two years. 

I think in the end, the money will be about the same, but with a lot less stress.

[bulldogcpa]

That's why I specifically choose which clients to terminate (er...refer out). 

[mdtao31]

no,you know how that goes one will love the referral and

one will ask you why in gods name did you

refer this bum!!!

regards,LARRY

stay safe

[bulldogcpa]

Hey Larry,

I understand.  I've used this firm for close to 20 years for Peer Review and Quality Control reviews.  The two principals were under graduates when I was a senior TA in college.   Long history.  I have confidence in them and their staff. 

Plus, it is not compensated. 

And the not so great clients got no referral, just a boot.  that was only 2-3 that i would have been embarrassed referring over to my friends.