NSA Tax Talk Live!
Tax Talk Live is an expert-led forum where we go over tax questions and issues that have been brought up in the NSA community.
Whether you’re an active participant or just browsing, we appreciate your engagement with the Tax Talk Forum. Did you know that while around 30% of you contribute to the discussions, a whopping 85% visit us at least quarterly? And let’s not forget those of you who receive our insights straight to your inbox—you’re all a vital part of what makes Tax Talk an incredible resource within the NSA Community.
Next time you find yourself faced with a tricky question or a complex issue that requires digging through research, don’t go it alone. Drop your query into Tax Talk and let the collective wisdom of your peers guide you. The knowledge shared here is truly remarkable.
We’re excited to introduce Tax Talk Live—a monthly event on the first Wednesday of each month at 2 PM Eastern, where we dive into crucial practice management topics. Each month’s session generates in-depth, timely discussions, and we’re thrilled to share these summary articles that emerged from those conversations. These insights are straight from your fellow professionals, designed to help you navigate the challenges of your practice.
Dive in and enjoy the wealth of knowledge!
AUGUST 2024 TAX TALK LIVE
Client documentation in PDF format
Many of the attendees expressed concerns that clients are sending them image files or other file types that are not secure or are not readily transferrable into the systems we use. Some of you use Adobe products to transform them into PDF format, but there remains the issue of the additional time, expense, and lack of security. Hyman Zacharia has an email he sends out to all his clients that politely, but firmly, explains that his firm only accepts pdfs. He was kind enough to offer it up for others to adapt and use as they saw fit. We have also included a helpful link from Maria Krey on creating pdfs with your device.
Hyman’s Email:
Please be advised that we are not able to use any pictures that you send to us. This includes pictures sent embedded in an email, attached to an email, or uploaded to your client portal. Please scan (as a PDF file) your documents to us. Most cellular phones have an app available so that you can use your phone as a scanner. You may also fax your documents to us. Other options available are dropping them off at our office or sending the documents to us via USPS or private delivery carrier. Thank you for you cooperation.
Instructions for how to create a PDF with your device:
https://support.google.com/a/users/answer/9308884?hl=en&co=GENIE.Platform%3DAndroid
Credit Card Surcharges
We ALL agreed that surcharges for using credit cards was annoying and many of the folks on the session yesterday expressed that, when possible, they will avoid using that vendor if they see them. “It is a cost of doing business.” Said Kelly Myers. Most of us just add it into our fees ahead of time. There was also some discussion about some of the recent legislation and policies that are coming out that prohibit such fees in some states.
Here is a summary of some of the current things happening around this issue. This is useful information not only for your own practice, but also to share with your clients. Please be sure you confirm the applicable rules and restrictions in your locale.
As independent accountants, it is essential to stay informed about evolving payment practices that can impact your clients’ financial operations. One such practice is the implementation of credit card surcharges, which has become an increasingly attractive option for many professionals, including legal practitioners, to offset processing fees.
This article aims to provide a comprehensive overview of credit card surcharges, including their legality, implementation, and the rules that must be followed to ensure compliance.
What is a Credit Card Surcharge?
A credit card surcharge is an additional fee that merchants charge their customers to cover the cost of credit card processing fees. This surcharge applies only to credit card transactions and not to debit cards, even if a debit card is processed as a credit transaction. The fee is typically a percentage of the transaction amount.
Example:
Consider a scenario in a local dentist’s office. If a patient opts to pay with a credit card, the office may apply a 2% credit card surcharge. This means that the patient’s bill will reflect this additional charge, and the patient is informed about the surcharge beforehand.
Are Credit Card Surcharges Legal?
The legality of credit card surcharges varies by state. Although the practice was prohibited for many years, a class-action lawsuit in 2013 paved the way for merchants in several states to implement surcharges. Since then, many states have adopted pro- surcharging stances. However, some states still maintain restrictions or outright bans.
States Where Surcharges Are Legal:
Credit card surcharges are legal in most states. Here’s a quick list of some states where surcharges are permitted:
- Alabama to Louisiana: Includes states such as California, Florida, and Georgia.
- Maryland to Oregon: Includes Michigan, New Jersey, and Texas.
- Pennsylvania to Wyoming: Includes Virginia, Washington, and Wisconsin.
States Where Surcharges Are Illegal:
As of February 2024, surcharges are illegal in:
- Connecticut
- Maine
- Massachusetts
- New York (specific restrictions)*
- Puerto Rico
*In New York, merchants cannot list a pre-surcharge subtotal or a separate line item for the surcharge, complicating the standard surcharge practice.
Rules for Implementing Credit Card Surcharges
For accountants advising clients on implementing credit card surcharges, it's crucial to understand the following guidelines:
- Notify Credit Card Institutions: Merchants must inform credit card companies in writing about their intention to apply surcharges.
- Notify Clients: Transparency is key. Clients must be made aware of the surcharges through clear communication, such as invoices or office signage.
- Limit Surcharges to Processing Costs: The surcharge should not exceed the actual cost of processing fees. In general, surcharges are capped at 3% in the U.S.
- Exclude Debit Cards: Surcharges are strictly limited to credit card transactions and cannot be applied to debit card payments, even if processed as credit.
- List Surcharges Separately: On invoices, surcharges must be itemized separately to ensure transparency and facilitate easy reconciliation.
Compliance with PCI DSS
While not directly related to surcharging, compliance with the Payment Card Industry Data Security Standard (PCI DSS) is crucial for any business accepting credit card payments. These standards ensure that all companies processing credit card information maintains a secure environment.
Simplifying Surcharge Implementation with Payment Processors
Navigating the complexities of credit card surcharge compliance can be challenging. Legal payment processors, such as LawPay, can assist businesses by ensuring adherence to the latest card brand rules and regulations. These processors help simplify the surcharge process, providing clients with more payment options while maintaining compliance.
Conclusion
As independent accountants, you play a vital role in guiding your clients through the intricacies of credit card surcharges. By staying informed about the legal landscape and compliance requirements, you can help your clients implement surcharges effectively and ethically. Whether advising law firms or other businesses, understanding these rules will enhance your ability to provide valuable, informed advice.
Scheduling Tools
Regardless of in person or online meetings, scheduling is an issue. Trying to line up clients in your schedule is a hassle. Some of the participants on the call presented their scheduling apps, and we took that a step further and did a little research on some of the most popular apps out there and summarized their value.
For independent accounting practitioners, effective time management is crucial to balancing client meetings, consultations, and administrative tasks. Choosing the right scheduling app can streamline your workflow, improve client interactions, and enhance productivity. Let’s evaluate and compare six popular scheduling apps: Square Appointments, Setmore, Calendly, Zoho Bookings, Appointy, Doodle, and SimplyBook.me, with a focus on their suitability for independent accountants.
Features:
- Integrated payment processing through Square, allowing accountants to bill clients directly after meetings.
- Automated appointment reminders to reduce no-shows.
- Calendar syncing for easy schedule management.
Usability:
- User-friendly interface, particularly beneficial for those already familiar with Square’s ecosystem.
- Quick setup and straightforward integration with other Square tools.
Pricing:
- Free for individual users, making it cost-effective for solo practitioners.
Suitability:
- Ideal for accountants who want an integrated billing and scheduling solution, particularly if already using Square for payment processing.
Features:
- Customizable booking pages for clients to schedule appointments.
- Video meeting integration with platforms like Zoom, useful for virtual consultations.
- Offers calendar management and appointment reminders.
Usability:
- Intuitive drag-and-drop interface for easy setup.
- Accessible for both practitioners and clients.
Pricing:
- Free for up to 4 users, providing a cost-effective solution for solo accountants.
Suitability:
- Suitable for accountants who need flexibility in scheduling and virtual meeting options.
Features:
- Seamless integration with Google, Outlook, and iCloud calendars.
- Customizable meeting types and availability settings to manage different client needs.
- Team scheduling features for those collaborating with other professionals.
Usability:
- Clean, easy-to-use interface with a focus on simplicity and efficiency.
- Quick setup process with strong integration capabilities.
Pricing:
- Free basic plan, with affordable paid plans starting at $8 per user per month.
Suitability:
- Ideal for accountants seeking a straightforward, efficient scheduling tool with robust calendar integration.
Features:
- Integrates with other Zoho applications for a comprehensive business management solution.
- Automated email and SMS notifications to clients.
- Offers a self-service portal for clients to book and manage appointments.
Usability:
- User-friendly and integrates seamlessly with other Zoho products.
- Easy navigation and customization options.
Pricing:
- Free for basic features, with paid plans starting at $6 per user per month.
Suitability:
- Best for accountants who are already using Zoho products and want a streamlined scheduling solution within their existing workflow.
Features:
- Offers appointment scheduling with marketing and CRM features.
- Automated reminders and a client booking app enhance client interactions.
- Integrations with social media for booking through platforms like Facebook.
Usability:
- Feature-rich dashboard with customization options, which may require a learning curve.
- Flexible booking options tailored to various accounting services.
Pricing:
- Free for basic use, with paid plans starting at $19.99 per month.
Suitability:
- Suitable for accountants who want an all-in-one scheduling and marketing tool with CRM capabilities.
Features:
- Focuses on group scheduling with poll-based meeting coordination.
- Calendar integrations for automatic scheduling.
- Simple scheduling links for individual meetings.
Usability:
- Extremely user-friendly, especially for coordinating group meetings or consultations.
- Minimal setup required, making it quick and easy to use.
Pricing:
- Free for basic use, with paid plans starting at $6.95 per user per month.
Suitability:
- Ideal for accountants who frequently schedule group meetings and need a simple way to find common availability.
Features:
- Comprehensive booking system with custom features and add-ons.
- Integration with payment gateways for billing clients.
- Marketing tools like promotions and gift cards.
Usability:
- Feature-rich with a learning curve, but highly customizable.
- Offers tailored solutions for specific business needs.
Pricing:
- Free basic plan, with paid plans starting at $9.90 per month.
Suitability:
- Best for accountants looking for a robust booking system with extensive customization and marketing features.
Conclusion
Independent accounting practitioners need scheduling apps that enhance productivity and facilitate smooth client interactions. Square Appointments and SimplyBook.me offer integrated payment solutions and customization, while Setmore and Appointy provide video integrations and marketing tools. Calendly and Doodle offer simplicity and efficiency, ideal for accountants focusing on straightforward scheduling. Zoho Bookings is perfect for those who want to integrate scheduling with other Zoho business management tools.