By Paul S. Hamann& Jack Salewski, CPA, CGMA
I am not a big fan of checklists or New Year’s resolutions, but – there’s always a but –that being said, they are helpful in an annoying sort of way. So, in an attempt to use a checklist and New Year’s resolution for good I have put together a short but important to-do list for you and your clients, so you can move Reasonable Compensation from the Procrastination column to the Done column.
- Send your clients an issue letter explaining Reasonable Compensation. We have a great letter you can use to get started, just download it from RCReports.com*
- Follow up on the letter, rinse and repeat as necessary. A large percentage of your clients will simply do nothing after receiving your issue letter – right? This is a perfect opportunity to check in with your clients, “Hi Todd, Let’s get your Reasonable Compensation documented; its cheap insurance and the IRS is cracking down in this area” (you get the idea…)
- If your client has no idea how to value the services they provide to their S Corp, use RCReports to assist them.
- Put the Reasonable Compensation figure in the context of your client’s business. Don’t know what I’m talking about? – take our class on Reasonable Compensation. If we don’t have any live events scheduled, watch a recently archived class here.
- Reward yourself – Buy yourself that “thingy” you really wanted and didn’t receive this holiday season, (you did remember to invoice for your services) and check Reasonable Compensation off your to-do list!
Ahh – few things are as satisfying as crossing items off your to-do list AND keeping a New Year’s resolution at the same time. Here’s wishing you and your clients a prosperous 2015, and should a Reasonable Compensation challenge your way come – RCReports will have your back. Now get back to work, April 15th will be here before we know it…
*You will need to login to your RCReports account to download the issue letter, you will find it under ‘Tools’ in the Help tab.