Accounting
Video summaries take center stage at tax time
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You and your team have worked tirelessly to complete clients’ tax returns accurately and on time this past tax season. You’ve sifted through hundreds of scattered documents, statements and receipts. You’ve reviewed fact patterns and precedents and double-checked the Tax Code well into the evening hours. Then when it comes time to deliver a thick summary (tax return) of each client’s financial life over the past year, all you need them to do is review it and sign it.
But after all that work and stress, most clients don’t care. There are just three things they want to know at tax time:
1. How much do I owe? (The What)
2. How do these numbers compare to last year? (The So What)
3. What can I do going forward to pay less? (The Now What?)
If you drop a 137-page tax return in your client’s mail (or inbox) with your bill attached, they won’t look it over carefully. They’ll skip to Line 37 (how much is owed/overpaid), glance at your bill, and decide if they feel the amount was worth the result.
This common approach at tax time does not help clients answer Question 2 (So What) and Question 3 (Now What) above. All you’ve done is explain to them “The What.” If you’re not taking the time to explain the “So What” and the “Now What,” they’ll wonder if you (or another firm) could have done better for them.
Too often, a partner’s assistant or a junior tax person sends off the return to the client and says, “Please sign. You owe $29,000.” That’s it. The loop is closed. Obviously, this is not a great experience for clients.
At this point in the year, I know you’re exhausted. The last thing you want to do is sit down with each client and go over their tax returns with them. But this is the only time of year when you have their undivided attention. Take advantage of this opportunity now!
Suppose you created a short, three-minute video for your better clients that briefly walks them through the highlights of their return. The video could then show them a quick comparison of their 2023 vs. 2022 numbers and explain what’s changed, what you see as the next steps moving forward, and what you’ll be paying attention to in the year ahead.
You should be able to address all those questions in a simple three-minute video. It doesn’t need to be an elaborate Hollywood production. You can use your computer’s microphone, camera and low-cost recording software such as Loom or BombBomb (Disclaimer: The author has no commercial or promotional ties with the products mentioned in this article). See my earlier article for more
Doing these short video summaries has many other benefits for your firm:
1. They give you the ability to add more revenue from clients. That’s because clients now see how they can use your firm for higher-level services such as tax planning, entity planning or cash flow planning to improve their financial outcome in the year ahead (see Now What above).
2. They save you time. How often have you emailed a client who responds, “I need to talk to you”? You’ve essentially sent them into the darkness, and they have no idea what’s happening with their financial situation. Naturally, they have questions, but with a three-minute summary video, you could have answered 90% of their questions in advance rather than taking a call. Think about how much time that saves you — not just for the length of the call, but for all the scheduling and prep work before the call.
Three-minute summary videos are an asset, not an expense. They can massively increase productivity.
3. They’re a great prep tool for your mid-year meetings. How often have you walked into a mid-year client meeting not remembering their issues or what you talked about the last time you met? Suppose you sent them a summary video when you delivered their tax return. In that case, you can review that video right before the mid-year meeting and instantly recall any color you added to their situation. You won’t have to spend half the meeting trying to remember everything you talked about last time. Even better, your client will probably re-watch the video before the meeting. Nobody is so busy that they can’t find three minutes to review a video.
You could start with just your best 20 or 30 clients, but I’m sure you’ll be amazed by the feedback and want to roll out video summaries for the rest of your client roster. Remember, the mind is for having ideas, not for storing them. As I wrote earlier this year,
At this time of year, you want to close the loop with clients. Don’t just ask them to sign their return and hit them with a bill. When you do that, you’re essentially sending them two bills — one from the IRS and then one from you. That’s not building a relationship or showing them how your expanded level of services could help them achieve better financial outcomes and more peace of mind.
The What, So What and Now What is your opportunity to discuss how you can add value to the relationship between April and December? Video summaries are a great way to get the ball rolling. How does your firm follow up with clients after delivering their tax returns? I’d
Millions more taxpayers will be receiving the Form 1099-K in the mail this year for the first time if they were paid $5,000 or more last year through a service such as Venmo, PayPal, Cash App, StubHub, Etsy and Airbnb, and most won’t be expecting it.
New research from tax automation provider Avalara found 61% of gig economy workers are unaware of recently lowered 1099-K reporting thresholds aimed at capturing unreported online sales income, Nearly three-fourths (73%) of the gig workers surveyed don’t know the payment threshold above which they would receive a Form 1099-K and be required to file an IRS tax return.
Gig workers will be looking for advice from a tax preparer. Over 20% of the survey respondents plan to pay a tax professional for the first time as a result of 1099-K reporting changes and complexity.
Last year, the IRS extended its transition relief for the new Form 1099-K information reporting threshold,
The Avalara survey found that while 61% of respondents claim to be knowledgeable about Form 1099-K and its purpose, an equal proportion of 61% don’t know the 1099-K reporting threshold is lower this year and subsequent tax years. For subsequent tax seasons on the way to a $600 1099-K reporting threshold, only 18% surveyed could identify the correct threshold for 2026 and the final $600 reporting threshold for the 2027 tax season.
The respondents offered various predictions for how they would fare from the new income reporting requirements: 37% believe their business will be profitable following tax season, 36% responded they’ll likely break even, and 17% predict they’ll lose money due to the IRS changes.
More than one-third (37%) of gig workers surveyed said this is the first year they’re receiving a 1099-K, so 21% of respondents plan to engage a tax professional for the first time. Another factor in seeking professional advice could be the number of gigs these workers are juggling: 75% of survey respondents have two or more sources of income, 45% have three or more, and 16% have four or more. Accountants and bookkeepers will be essential to helping 1099-K newbies sort out the reporting and tax implications of multiple income sources.
The survey also indicated how respondents plan to move forward after tax season. To avoid crossing the $2,500 1099-K threshold next year, over 20% of workers expect to be quitting one or more of their gig economy jobs and 19% are changing their earnings strategy, while 15% will be using tax software for the first time. Another 20% intend to take on more under-the-table work, and 15% will switch to Zelle to avoid IRS reporting rules associated with PayPal and Venmo. Some 40% of those surveyed say they’ll take on one or more additional gig economy jobs. And 16% of survey respondents said they will be leaving the gig economy altogether and pursuing different work.
“Our survey data reveals the urgent need for basic knowledge and orderly direction on the part of gig economy workers to determine how best to comply with the lowered 1099-K digital payments threshold,” said Avalara general manager Kael Kelly in a statement Thursday. “This scrappy segment of our economy demonstrates DIY drive in creating a living from engaging in multiple jobs, non-traditional work, and sometimes essential services that support how consumers want to buy and receive goods and services – and they’re now faced with the additional challenge of sorting out new, last-minute tax regulations and reporting requirements. Businesses of all sizes, including independent workers, need a fast, robust, easy, and affordable way to e-file 1099 forms, and that capability is within reach through modern cloud software.”
The global economy is poised for “reasonable, but not particularly exciting” growth this year, yet uncertainties abound, according to a new report from the Association of Chartered Certified Accountants.
The
“The global economy should continue to grow at a reasonable, but not particularly exciting pace in 2025,” said ACCA chief economist Jonathan Ashworth in the report. “But it is a world marked by significant uncertainty. The risks are predominantly on the downside, amid potential changes in U.S. trade policy, a challenging geopolitical backdrop, political uncertainty and rising government bond yields.”
Economist Charles Goodhart suggested the U,S. economy may perform strongly in 2025, but Europe and the U.K. could struggle. Goodhart believes inflation could fall in the short run but will probably rebound in 2026 and 2027.
“My guess, on which I would not place a great deal of weight, is that the U.S. economy will do very well in 2025,” he said. “Both Europe and the U.K. will do relatively badly. Not only will higher U.S. import tariffs be a problem for Europe, but higher U.S. tariffs on imports from China will probably mean that China will want to export more of its goods to Europe, at a time when Germany’s business model is already under extreme stress.”
The emergence of AI agents promises new productivity breakthroughs, but hybrid solutions integrating other technologies will be crucial for sustained value, according to the report.
The ACCA interviewed seven CFOs from across the globe in various sectors for the report. While the interviewees did not appear to be expecting a notable slowing in global growth in 2025, there was some caution given the significant global uncertainty, including that related to the policies of President Trump.
“Technology, particularly AI, continues to be a priority, with businesses recognising both its potential and disruptive challenges,” said the report. “A wide range of risks were highlighted, including inflation (and changes in the price of important commodities), policy changes in large economies, cybersecurity, exchange rate movements, supply chains, climate change, social tensions, geopolitics, and fast-changing consumer habits. The latter two were also cited as opportunities. A recurring theme among CFOs is the need for agility, innovation and resilience in navigating an uncertain economic landscape.”
The ACCA also releases a quarterly
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