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Working with ADHD: A toolkit for accountants

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According to a recent study published in Psychiatry Research, as many as 3.10% adults live with Attention Deficit Hyperactivity Disorder, which is characterized by persistent patterns of inattention, hyperactivity, and impulsivity and can significantly impact various aspects of life, including the workplace.

The accounting profession is no exception. There’s a growing number of accountants admitting they have ADHD and their struggles with the neurological condition. This Reddit thread asking if there were ADHD accountants has over 140 comments, with people sharing their experiences of living with ADHD in accounting. 

Furthermore, industry thought leaders like Sabrina, CPA and Blake Oliver, CPA, host of the accounting podcast, have been vocal about their condition, lending credence to the idea that:

1. A good number of accountants have this condition.
2. It’s not a weakness, and it’s possible to thrive with ADHD in a profession like accounting.

In light of all these, we wanted to create a resource to help accounting, bookkeeping, and tax professionals with ADHD. In this piece, we’ll share practical tips and resources to help manage your ADHD and flourish. 

Challenges faced by accountants with ADHD

While ADHD has strengths, such as creativity, hyperfocus, high energy, and out-of-the-box thinking, it can also present certain challenges for accountants. Let’s look at them below:

1. Difficulty with organization and prioritization. A study measured the organizational skills of people with ADHD and those without and found the former displayed lower organizational scores compared to the latter. This makes it difficult for accountants with ADHD to stay on top of deadlines, manage multiple projects simultaneously, and maintain a well-organized workspace.
2. Time management struggles. A 2021 research revealed that time perception (e.g., feeling like time is moving faster) is a central symptom of ADHD. An excerpt from the report says, “This problem can lead to significant difficulties in assessing the amount of time that has passed or the amount of time that might be required to perform a specific task.” Ultimately, this results in missed deadlines, rushed work, and increased stress levels. 
3. Issues with focus and concentration. By definition, ADHD implies difficulty with sustained focus and concentration. This can be particularly challenging in accounting, which often requires extended periods of intense focus on detailed financial information and complex calculations. Accountants with ADHD may find it harder to maintain concentration in these cases, leading to errors or missing details that could have significant consequences.
4. Sensory overload. While sensory overload (the experience of being overwhelmed by sensory input from the environment) can happen to anyone, it happens more frequently and to a greater extent in the neurodiverse. In fact, up to 60% of cases of ADHD have at least one symptom of sensory processing disorder. This heightened sensory sensitivity can make the typical accounting environment, with its constant background noise, visual stimuli and high pressure, overwhelming for those with ADHD, contributing to feelings of anxiety. 
5. Getting easily distracted and bored. Many accounting tasks like data entry, reconciliations, and reviewing financial statements are repetitive and monotonous. Unfortunately, this is a problem with ADHD accountants as they find such tasks boring and struggle to stay on track.

Anton Lewis, an associate accounting professor with ADHD, shared his experience in a piece titled “The Divergent Accountant,” writing, “Having been diagnosed with attention deficit hyperactivity disorder, inattentive type, much later in life explains why my attention to detail often floundered when it came to long, dull, repetitive jobs, typical but necessary of some accounting tasks.”

This trait leads to issues with completing routine but essential accounting tasks. 

These challenges can significantly impact the job performance and overall well-being of accountants with ADHD. However, with the right strategies and support, it’s possible to overcome these obstacles and succeed in the accounting profession.

Tips for ADHD accountants

Here are some tips to help you navigate your role as an accountant working with ADHD.

1. Planning and organization. Accountants and bookkeepers need to plan and organize to avoid mistakes, finish work on time, and keep clients happy. With ADHD, organization becomes difficult but not impossible, if you do the following: 

  • Use mind maps and to-do lists with deadlines: Mind maps and to-do lists can help visualize tasks and deadlines. Mind maps allow for a broader overview of projects, while to-do lists with deadlines provide structure and accountability.
  • Break down large projects into smaller, more manageable steps: Large projects can often feel overwhelming and daunting, which is why you should break them down. According to Jerimya Fox, a licensed professional counselor and a doctor of behavioral health at Banner Behavioral Health Hospital, “Breaking tasks down even further can help you feel more accomplished and the goal more achievable.” 
  • Utilize project management software or apps: These tools can help organize tasks, set reminders, and track progress. Set reminders, create checklists, and use features like color-coding to prioritize tasks. 

2. Time management. As explained earlier, people with ADHD experience time distortions, which make them lose track of time and fall behind schedule. You get distracted, and before you know it, the whole day has passed, and you haven’t achieved the tasks you set out to do. But there are ways to combat this. You should:

  • Set realistic deadlines and time blocks for tasks: Don’t overestimate your capabilities. Set realistic goals and allocate specific time blocks for your tasks. This will help you manage your time effectively and improve your productivity.
  • The Pomodoro Technique: This involves working in focused bursts (usually 25 minutes) followed by short breaks. It can help improve concentration and prevent burnout. If you need a (free) tool to practice the Pomodoro technique, check out Pomofocus.
  • Use timers and alarms to stay on track: We’ve already established that you probably experience time faster and don’t perceive time well. So, don’t rely on your intuition to know when to take breaks or transition to another duty. Instead, set timers and alarms to remind you when to start and stop tasks and for upcoming deadlines. Remember, don’t ignore the alarm when it rings. Adhere to it to avoid falling behind. 

3. Motivation and engagement. Since accounting tasks can be repetitive, those with ADHD need to find ways to stay engaged and motivated. Here are some strategies for that:

  • Gamification techniques: Turning work into a game can make it more enjoyable and motivating. (One paper shows that gamified intervention positively impacts people with ADHD). So, use reward systems like treating yourself — no matter how small the reward — after completing a task, or progress trackers to visualize your accomplishments.
  • Identify and leverage your strengths: Instead of bemoaning the weaknesses of being an accountant with ADHD, you should lean into your strengths and superpower(s). For Andy Muckett, a chartered tax adviser at AKM Accounting Solutions, his ADHD makes him detail-oriented. It also helps him see the things others don’t, think methodically and practically, identify issues others would easily overlook, and spot opportunities that others wouldn’t have considered. In essence, find your strengths and double down on them. This will make you more engaged and productive in your work.
  • Take breaks and walk around: Short breaks and physical activity (like a brief walk) can help improve focus and reduce boredom. Fidget toys can also help manage restlessness and help you stay engaged during tasks that require prolonged concentration.

4. Collaboration and communication. You’ll often need to work with colleagues, managers, and clients. This means you need great communication and collaboration skills. This might not be your forte, but here are a few things that can help. 

  • Communication strategies for expressing needs and requesting accommodations: First, be open and honest about your disorder and your challenges. Articulate your needs and explain how certain accommodations, like a quiet workspace and certain productivity tools, can help you succeed. Use written communication to document your request and avoid misunderstandings. 
  • Tools for staying on track during meetings: If you tend to zone out, use note-taking apps to capture important information. Also, set reminders for any action items or deadlines discussed to ensure you follow through. 
  • Techniques for managing social interactions: When in social settings, actively listen and avoid interrupting who you’re conversing with. Manage your impulsivity by pausing before responding. Additionally, you can ask clarifying questions to ensure you understand the conversation. 

5. Managing sensory overload. To cope with overstimulation, you should:

  • Adjust workspace lighting and temperature for comfort: Excessive noise, bright lights, or uncomfortable temperatures can contribute to sensory overload. So, experiment with different lighting levels and temperature settings to find what works best for you.
  • Take breaks to get fresh air and sunlight: Spending time outdoors — even a short walk — can help reduce sensory overload, improve mood, and increase energy levels. 
  • Use noise-canceling headphones or earplugs: Excessive noise can be overwhelming. However, noise-canceling headphones or earplugs can help block out noise and create a calmer work environment. You can also play soothing white noise to improve your focus. 

For more, see this list of more than 55 sensory accommodations to try, from neurodivergent psychologist Dr. Megan Anna Neff.

ADHD notes on desktop

Yulia Furman – stock.adobe.com

The ADHD Accountant’s Toolkit

Here’s a recommendation of books, templates and courses to help you thrive as an ADHD accountant.

  1. ADHD books (and workbooks)
  1. Forms, checklists and tools 
  1. ADHD courses for managing ADHD at work

4. ADHD profiles and success stories

1.How Sabrina Parris, CPA, balances ADHD and high-pressure accounting demands
2.Shahram Zarshenas: From school struggles to CEO success

Final thoughts

If there’s one thing to take away from this piece, it’s this: ADHD is a neurological condition, not a weakness. With the right strategies (like those outlined in this piece) and support from managers/employers, accountants with ADHD can channel their strengths to become invaluable assets to their firms and clients.

However, you should note that this toolkit is just the starting point. Each individual’s experience with ADHD is unique, and what works for one person may not work for another. So, it’s essential to experiment with different strategies and find what works best for you. 

If you’re struggling to manage your ADHD symptoms, seek help from a qualified mental health professional or ADHD coach.

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Accounting

Senate unveils plan to fast-track tax cuts, debt limit hike

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Senate Republicans unveiled a budget blueprint designed to fast-track a renewal of President Donald Trump’s tax cuts and an increase to the nation’s borrowing limit, ahead of a planned vote on the resolution later this week. 

The Senate plan will allow for a $4 trillion extension of Trump’s tax cuts and an additional $1.5 trillion in further levy reductions. The House plan called for $4.5 trillion in total cuts.

Republicans say they are assuming that the cost of extending the expiring 2017 Trump tax cuts will cost zero dollars.

The draft is a sign that divisions within the Senate GOP over the size and scope of spending cuts to offset tax reductions are closer to being resolved. 

Lawmakers, however, have yet to face some of the most difficult decisions, including which spending to cut and which tax reductions to prioritize. That will be negotiated in the coming weeks after both chambers approve identical budget resolutions unlocking the process.

The Senate budget plan would also increase the debt ceiling by up to $5 trillion, compared with the $4 trillion hike in the House plan. Senate Republicans say they want to ensure that Congress does not need to vote on the debt ceiling again before the 2026 midterm elections. 

“This budget resolution unlocks the process to permanently extend proven, pro-growth tax policy,” Senate Finance Chairman Mike Crapo, an Idaho Republican, said. 

The blueprint is the latest in a multi-step legislative process for Republicans to pass a renewal of Trump’s tax cuts through Congress. The bill will renew the president’s 2017 reductions set to expire at the end of this year, which include lower rates for households and deductions for privately held businesses. 

Republicans are also hoping to include additional tax measures to the bill, including raising the state and local tax deduction cap and some of Trump’s campaign pledges to eliminate taxes on certain categories of income, including tips and overtime pay.

The plan would allow for the debt ceiling hike to be vote on separately from the rest of the tax and spending package. That gives lawmakers flexibility to move more quickly on the debt ceiling piece if a federal default looms before lawmakers can agree on the tax package.

Political realities

Senate Majority Leader John Thune told reporters on Wednesday, after meeting with Trump at the White House to discuss the tax blueprint, that he’s not sure yet if he has the votes to pass the measure.

Thune in a statement said the budget has been blessed by the top Senate ruleskeeper but Democrats said that it is still vulnerable to being challenged later.

The biggest differences in the Senate budget from the competing House plan are in the directives for spending cuts, a reflection of divisions among lawmakers over reductions to benefit programs, including Medicaid and food stamps. 

The Senate plan pares back a House measure that calls for at least $2 trillion in spending reductions over a decade, a massive reduction that would likely mean curbing popular entitlement programs.

The Senate GOP budget grants significantly more flexibility. It instructs key committees that oversee entitlement programs to come up with at least $4 billion in cuts. Republicans say they expect the final tax package to contain much larger curbs on spending.

The Senate budget would also allow $150 billion in new spending for the military and $175 billion for border and immigration enforcement.

If the minimum spending cuts are achieved along with the maximum tax cuts, the plan would add $5.8 trillion in new deficits over 10 years, according to the Committee for a Responsible Federal Budget.

The Senate is planning a vote on the plan in the coming days. Then it goes to the House for a vote as soon as next week. There, it could face opposition from spending hawks like South Carolina’s Ralph Norman, who are signaling they want more aggressive cuts. 

House Speaker Mike Johnson can likely afford just two or three defections on the budget vote given his slim majority and unified Democratic opposition.

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How asset location decides bond ladder taxes

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Financial advisors and clients worried about stock volatility and inflation can climb bond ladders to safety — but they won’t find any, if those steps lead to a place with higher taxes.

The choice of asset location for bond ladders in a client portfolio can prove so important that some wealthy customers holding them in a taxable brokerage account may wind up losing money in an inflationary period due to the payments to Uncle Sam, according to a new academic study. And those taxes, due to what the author described as the “dead loss” from the so-called original issue discount compared to the value, come with an extra sting if advisors and clients thought the bond ladder had prepared for the rise in inflation.

Bond ladders — whether they are based on Treasury inflation-protected securities like the strategy described in the study or another fixed-income security — provide small but steady returns tied to the regular cadence of maturities in the debt-based products. However, advisors and their clients need to consider where any interest payments, coupon income or principal accretion from the bond ladders could wind up as ordinary income, said Cal Spranger, a fixed income and wealth manager with Seattle-based Badgley + Phelps Wealth Managers.

“Thats going to be the No. 1 concern about, where is the optimal place to hold them,” Spranger said in an interview. “One of our primary objectives for a bond portfolio is to smooth out that volatility. … We’re trying to reduce risk with the bond portfolio, not increase risks.”

READ MORE: Why laddered bond portfolios cover all the bases

The ‘peculiarly bad location’ for a bond ladder

Risk-averse planners, then, could likely predict the conclusion of the working academic paper, which was posted in late February by Edward McQuarrie, a professor emeritus in the Leavey School of Business at Santa Clara University: Tax-deferred retirement accounts such as a 401(k) or a traditional individual retirement account are usually the best location for a Treasury inflation-protected securities ladder. The appreciation attributes available through an after-tax Roth IRA work better for equities than a bond ladder designed for decumulation, and the potential payments to Uncle Sam in brokerage accounts make them an even worse asset location.

“Few planners will be surprised to learn that locating a TIPS ladder in a taxable account leads to phantom income and excess payment of tax, with a consequent reduction in after-tax real spending power,” McQuarrie writes. “Some may be surprised to learn just how baleful that mistake in account location can be, up to and including negative payouts in the early years for high tax brackets and very high rates of inflation. In the worst cases, more is due in tax than the ladder payout provides. And many will be surprised to learn how rapidly the penalty for choosing the wrong asset location increases at higher rates of inflation — precisely the motivation for setting up a TIPS ladder in the first place. Perhaps the most surprising result of all was the discovery that excess tax payments in the early years are never made up. [Original issue discount] causes a dead loss.”

The Roth account may look like a healthy alternative, since the clients wouldn’t owe any further taxes on distributions from them in retirement. But the bond ladder would defeat the whole purpose of that vehicle, McQuarrie writes.

“Planners should recognize that a Roth account is a peculiarly bad location for a bond ladder, whether real or nominal,” he writes. “Ladders are decumulation tools designed to provide a stream of distributions, which the Roth account does not otherwise require. Locating a bond ladder in the Roth thus forfeits what some consider to be one of the most valuable features of the Roth account. If the bond ladder is the only asset in the Roth, then the Roth itself will have been liquidated as the ladder reaches its end.”

READ MORE: How to hedge risk with annuity ladders

RMD advantages

That means that the Treasury inflation-protected securities ladder will add the most value to portfolios in a tax-deferred account (TDA), which McQuarrie acknowledges is not a shocking recommendation to anyone familiar with them. On the other hand, some planners with clients who need to begin required minimum distributions from their traditional IRA may reap further benefits than expected from that location.

“More interesting is the demonstration that the after-tax real income received from a TIPS ladder located in a TDA does not vary with the rate of inflation, in contrast to what happens in a taxable account,” McQuarrie writes. “Also of note was the ability of most TIPS ladders to handle the RMDs due, and, at higher rates of inflation, to shelter other assets from the need to take RMDs.”

The present time of high yields from Treasury inflation-protected securities could represent an ample opportunity to tap into that scenario.

“If TIPS yields are attractive when the ladder is set up, distributions from the ladder will typically satisfy RMDs on the ladder balance throughout the 30 years,” McQuarrie writes. “The higher the inflation experienced, the greater the surplus coverage, allowing other assets in the account to be sheltered in part from RMDs by means of the TIPS ladder payout. However, if TIPS yields are borderline unattractive at ladder set up, and if the ladder proved unnecessary because inflation fell to historically low levels, then there may be a shortfall in RMD coverage in the middle years, requiring either that TIPS bonds be sold prematurely, or that other assets in the TDA be tapped to cover the RMD.”

READ MORE: A primer on the IRA ‘bridge’ to bigger Social Security benefits

The key takeaways on bond ladders

Other caveats to the strategies revolve around any possible state taxes on withdrawals or any number of client circumstances ruling out a universal recommendation. The main message of McQuarrie’s study serves as a warning against putting the ladder in a taxable brokerage account.

“Unsurprisingly, the higher the client’s tax rate, the worse the outcomes from locating a TIPS ladder in taxable when inflation rages,” he writes. “High-bracket taxpayers who accurately foresee a surge in future inflation, and take steps to defend against it, but who make the mistake of locating their TIPS ladder in taxable, can end up paying more in tax to the government than is received from the TIPS ladder during the first year or two.”

For municipal or other types of tax-exempt bonds, though, a taxable account is “the optimal place,” Spranger said. Convertible Treasury or corporate bonds show more similarity with the Treasury inflation-protected securities in that their ideal location is in a tax-deferred account, he noted.

Regardless, bonds act as a crucial core to a client’s portfolio, tamping down on the risk of volatility and sensitivity to interest rates. And the right ladder strategies yield more reliable future rates of returns for clients than a bond ETF or mutual fund, Spranger said.

“We’re strong proponents of using individual bonds, No. 1 so that we can create bond ladders, but, most importantly, for the certainty that individual bonds provide,” he said.

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Why IRS cuts may spare a unit that facilitates mortgages

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Loan applicants and mortgage companies often rely on an Internal Revenue Service that’s dramatically downsizing to help facilitate the lending process, but they may be in luck.

That’s because the division responsible for the main form used to allow consumers to authorize the release of income-tax information to lenders is tied to essential IRS operations.

The Income Verification Express Service could be insulated from what NMN affiliate Accounting Today has described of a series of fluctuating IRS cuts because it’s part of the submission processing unit within wage and investment, a division central to the tax bureau’s purpose.

“It’s unlikely that IVES will be impacted due to association within submission processing,” said Curtis Knuth, president and CEO of NCS, a consumer reporting agency. “Processing tax returns and collecting revenue is the core function and purpose of the IRS.”

Knuth is a member of the IVES participant working group, which is comprised of representatives from companies that facilitate processing of 4506-C forms used to request tax transcripts for mortgages. Those involved represent a range of company sizes and business models.

The IRS has planned to slash thousands of jobs and make billions of dollars of cuts that are still in process, some of which have been successfully challenged in court.

While the current cuts might not be a concern for processing the main form of tax transcript requests this time around, there have been past issues with it in other situations like 2019’s lengthy government shutdown.

President Trump recently signed a continuing funding resolution to avert a shutdown. But it will run out later this year, so the issue could re-emerge if there’s an impasse in Congress at that time. Republicans largely dominate Congress but their lead is thinner in the Senate.

The mortgage industry will likely have an additional option it didn’t have in 2019 if another extended deadlock on the budget emerges and impedes processing of the central tax transcript form.

“It absolutely affected closings, because you couldn’t get the transcripts. You couldn’t get anybody on the phone,” said Phil Crescenzo Jr., vice president of National One Mortgage Corp.’s Southeast division.

There is an automated, free way for consumers to release their transcripts that may still operate when there are issues with the 4506-C process, which has a $4 surcharge. However, the alternative to the 4506-C form is less straightforward and objective as it’s done outside of the mortgage process, requiring a separate logon and actions.

Some of the most recent IRS cuts have targeted technology jobs and could have an impact on systems, so it’s also worth noting that another option lenders have sometimes elected to use is to allow loans temporarily move forward when transcript access is interrupted and verified later. 

There is a risk to waiting for verification or not getting it directly from the IRS, however, as government-related agencies hold mortgage lenders responsible for the accuracy of borrower income information. That risk could increase if loan performance issues become more prevalent.

Currently, tax transcripts primarily come into play for government-related loans made to contract workers, said Crescenzo.

“That’s the only receipt that you have for a self-employed client’s income to know it’s valid,” he said.

The home affordability crunch and rise of gig work like Uber driving has increased interest in these types of mortgages, he said. 

Contract workers can alternatively seek financing from the private non-qualified mortgage market where bank statements could be used to verify self-employment income, but Crescenzo said that has disadvantages related to government-related loans.

“Non QM requires higher downpayments and interest rates than traditional financing,” he said.

In the next couple years, regional demand for loans based on self-employment income could rise given the federal job cuts planned broadly at public agencies, depending on the extent to which court challenges to them go through.

Those potential borrowers will find it difficult to get new mortgages until they can establish more of a track record with their new sources of income, in most cases two years from a tax filing perspective. 

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