We have used RCReports for several years. We make it part of our small business accounting and tax package and have all of our S Corp owners complete the surveys to make sure our salary amounts for the owners are reasonable. It is so much more helpful to have a system in place to establish this number than just estimating an amount. Stanley Dean, CPA - Dunwoody, GA
Great software. As a CPA, S Corp officer compensation has become a big issue as you know.
Your software takes the “guesswork” out of my work and helps substantiate our basis for officer compensation in case
of an audit.
In addition, it was very helpful to me to validate my compensation as an S Corp for 2018 😊 H.S., CPA - Lakewood Ranch, FL
We just love the Reasonable Compensation Reports. 😊 We like having something “concrete” to show the IRS if needed to substantiate the wages someone is taking. The program is easy to use and easy for the clients to view! H.A. - Ada, MI
I like having rcreports in our arsenal of tools for our clients, especially when it leads to a face to face meeting, that is valuable. And I like that it removes any perceived subjectivity on the part of me and my client. S.C., EA - Richardson, TX
"Our firm is trying to stay ahead of the IRS cracking down on reasonable comp. We looked into gathering all the sites with labor stats etc. but realized there wasn’t an easy way to pull in all that info effectively. We found your site and realized it was a time efficient way to provide a client service with a comfort level we were satisfied with." A.F., CPA - Carrollton, TX
"I use RCReports to establish reasonable salaries for S-Corp shareholder employees including my own CPA practice. I love how it analyzes the numerous roles small business owners play and consider the reasonable comp for all those different functions. The typical small business owner does a lot of administration and that really helps keep compensation on the lower end in a justifiable manner. I also like the professional looking reports. I previously used Salary.com or some other site and a spreadsheet but it wasn’t very detailed or professional looking. I haven’t had an IRS audit yet but it should be a real advantage having all of the details in a professional report." Erling Brakke, CPA, PLLC - The Woodlands, TX
"I just had a client complete an interview and went over it with them and we are going to decrease his pay and save him some SE tax. They were really impressed with it. I’m excited to continue to use it." David K. Loveless, CPA - Spanish Fork, UT
"I have not known how to advise clients in this area, however, and so it was something I wanted to tighten up in my practice. Knowing that I have this service available to me and to my clients has given me a greater peace of mind that should an IRS audit arise, we would be on solid ground to substantiate reasonable compensation." J.B. CPA - Edmonds, WA
"With reform this topic is so critical. We are going to be hard nosed with our S corps this year. I used some of your material for a presentation today – impact of business owner paying themselves $100k vs RC recommended $78k – keeps over $4000 in owner pocket given QBI pass through on top of payroll tax." Shelley Johnson, CPA - Indianapolis, IN
"I subscribed to RCReports because I need to use the Reasonable Compensation Reports for my clients who are business owners and might be targets of scrutiny by the IRS for not taking reasonable compensation for the services they perform in their business. The platform you built is awesome and easy to use and it came highly recommended by Dominique Molina, CPA of AICTC as well as Ed Lyons of Tax Coach." A.K. CPA - Staten Island, NY
"I subscribed to RC Reports because I am a tax adviser who works with S-Corporations. I have attended a few of your webinars through CPA Academy previously and was impressed with your staff, experience, and product. As you know, it is important that I establish a reasonable compensation amount that can be defended under audit for my clients. I am looking forward to utilizing RC Reports to do just that for my clients." J.R. EA - Byron Center, MI
"I run a tax firm that also has a business appraisal department (I have a total of 15 employees). As a company, we have always been aware of the need for reasonable compensation data and have used various sources including ERI and Salary.com. The reason I chose RC Reports was the comprehensive way the compensation studies are constructed. The other compensation study companies give a pay range for the position, but RC allocates based upon actual duties of the officer and the quality of operations and management.
From an audit or litigation support perspective, this is a more defensible position. Over the years I’ve performed this approach manually by running numerous studies for various job descriptions for the officer and then allocating. This is time consuming and not as concise as your platform. I believe the new tax laws are going to increase the need for formalized salary studies to keep CPAs and our customers out of trouble. Because your approach mirrors mine with less effort it was a pretty easy decision." M.F. CPA - West Linn OR
"I couldn’t do my tax planning without the software - period!" T.C. EA - Phoenix, AZ
"This issue has always been a concern to me and I see the importance of it increasing significantly over the next few years with my medical and dental client base. Specifically as it relates to the Section 199A deduction. I need a better way to document the process for my clients." L.P. CPA, Suwanee GA
"As a Tax Architect, RCReports is a key tool in my tool-kit. I run reasonable compensation on every business client with a pass through entity." L.C. EA, Houston TX
"We add 10 LLC S Corp annually and are slowly going back and making minor adjustments on our existing LLC S Corp owner employee pays. The studies help us set owner payroll. We have used them several times in IRS audits and they work.
My paycheck from our CPA firm was based on a study.
The data seems accurate by county and profession and the reports seem professional.
I understand the process and can do a study in a few minutes." R.T. CPA Tyrone, PA
"We subscribed because we realize this is a valuable tool that can help us add value to our our clients and our firm. It is a necessary tool and process we will provide to comply with the law and protect our ASSets." D.R. CPA, Spring TX
"I had training today with Molly on using RC Reports. She is terrific!! She answered my questions, showed me how to use your vital tool in the work I am tasked to do here at Financial Gravity with our clients. She also told me of additional resource you have for clients I will be working with that my fall outside of what is considered normal.
Thank you for the response to my request for help and for having a terrific trainer in Molly…she ROCKS!!" Lyle Miller, Financial Gravity, Allen, TX
"I subscribed because of the 2017 tax law - I believe as CPA's we will be more compelled than ever to have justification for the compensation we suggest to the client for owners/officers. So far, I do love the product!" S.F. Spring, TX
"RCReports has helped us in doing TCJA planning for our clients. We have been doing Compensation studies to support wages in order to maximize the 199A deduction. Interestingly enough, a by product of having staff assist with the studies is that they have done studies on themselves to assist in their salary negotiations. I wonder if I can charge them for their studies.Chris York, CPA, RCReports Subscriber since August 2017