{"id":1188,"date":"2016-01-26T17:43:59","date_gmt":"2016-01-26T23:43:59","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=1188"},"modified":"2018-01-29T12:06:03","modified_gmt":"2018-01-29T18:06:03","slug":"most-tax-pros-are-losing-profits-every-day","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/practice-management\/most-tax-pros-are-losing-profits-every-day\/","title":{"rendered":"Most Tax Pros Are Losing Profits Every Day"},"content":{"rendered":"

You work hard for your income and we want to help you make the most of every penny you earn. A big factor in that process is shortening the time to collect on your invoices. Most tax professionals send an invoice with net 30 terms, and from what we hear from you, it can take even longer than that to get paid. So, here\u2019s a little math to show you how that time delay can affect your profits.<\/span><\/p>\n

Let\u2019s use some round numbers for easy calculations. Let\u2019s say you typically invoice $100,000 total to your clients per year. If you have that money in hand, you can be investing it and earning income on it, and if you don\u2019t have it but have to pay staff or other bills, you\u2019d have to borrow. So, whether you look at the potential income it could make you or the potential interest you\u2019d have to pay on it, there is still a cost associated with not having that money in hand. For calculations, let\u2019s use a simple annual interest rate of 5 percent \u2013 and we all know it could easily be higher. If we divide this rate by the number of days in the year, we get your daily interest rate of .0137 percent. It sounds small. You might think it\u2019s nothing to worry about, but when you consider $100,000 of income multiplied by that daily rate, the cost of net 30 on your accumulated receivables is $411 ($100,000 x .0137% daily interest rate x 30 days). That\u2019s a lot of your hard-earned money.<\/span><\/p>\n

What if you could collect sooner on your invoices? What if you could avoid having to nag late-paying clients, preserving your relationship and your sanity? What if you could even save time creating the invoice and streamlining this process into your tax return filing?<\/span><\/p>\n

Now, you can! <\/span>Pay-by-Refund<\/span><\/a> is a product that enables taxpayers to pay for tax preparation directly from their refund. According to the IRS, in 2014, 79 percent of all individual income tax returns yielded a refund <\/span>1<\/sup><\/span>, so it is likely that the majority of your clients can take advantage of this convenient service. Taxpayers are charged a low $35 bank set-up fee on Federal returns for the service, and this fee is deducted from their refund, just like your tax preparation fees\u00b2<\/span>. <\/span>There are no additional costs to your client, and there is no cost to you for this service<\/b>. You get paid as soon as the refund is processed, and the funds come in electronically from the IRS. So simple. So easy.<\/span><\/p>\n

Plus, you can earn an additional $10 per Federal refund with Pay-by-Refund<\/b>2<\/sup><\/span>!<\/b><\/p>\n

It is important to note that Pay-by-Refund is not a loan against the refund. It is accomplished in partnership with a participating bank that creates a temporary bank account for the purpose of receiving the refund on behalf of the taxpayer. Once funded, the taxpayer can withdraw the funds from an ATM or have the funds loaded onto a prepaid debit or credit card. It might sound complicated to facilitate this, but it couldn\u2019t be simpler. The bank handles the set-up and you enable the process in just a few minutes. The forms you need are integrated into your software.<\/span><\/p>\n

It\u2019s easy to offer Pay-by-Refund to your clients. To get started, you must be an approved IRS efile provider and must sign up and be approved to issue refund transfers by one of our participating banks:<\/span><\/p>\n