[Firm Name]
SECONDARY ROLE
The following general guidelines will be helpful to
you as you assume a “Secondary” role for [Firm Name] clients. Please refer to this list as you undertake
you role as a Secondary, and ask for assistance from the Primary Partner if you
are unclear as to how to proceed in the performance of your role as a
Secondary. You will also find a helpful
chart at the end of this document that lists due dates by entity type.
A. Client Relationships
- Contact client/owner to gather information
a)
Understand
relationship roles with the client and the partner in charge
b) Have a
complete list of information required
• Audit checklist
• A&A checklist
• Tax checklist
• PBC letter
• Retirement plan census
• Tailor above checklist to eliminate
redundancies
c) Consider a
meeting with the client to obtain information, including lunch or dinner
d)
Discuss
significant changes to client’s business during the prior year
e)
Cover client’s
assistance in preparing for audit
f)
Understand who
we request information from
- Pre-year end tax planning meeting with client
a) Determine
information needed, and set up the meeting in advance, communicate to client in
the client’s timetable
b) Consider
a meeting with the owner and/or management to review results
c) Provide
alternatives and ideas
d) Discuss
client’s future plans that may require tax planning
3. Audit
planning meeting with client
a)
Consider
setting up such a meeting with client CFO and CEO 30 days or more prior to
year-end
b)
Discuss
significant changes to client’s business during the prior year
c)
Discuss time
budget with client
d)
Cover client’s
assistance in preparing for audit
e)
Set audit
timetable for:
• Staff
scheduling
• Preliminary
work
• Inventory
observation
• Confirmation
work
• Fieldwork
and wrap-up
• Report
delivery
4. Financial
statement review meeting with client
a)
Consider
setting up such a meeting with client CFO and CEO to cover review of financial
statements and management letter items
b)
Cover areas for
improving client’s financial performance and tax planning opportunities
c) Cover areas
for possible expansion of [Firm Name] services to client
• Think list
• [Firm Name] services outline
d) Discuss
with client the ways to improve the audit, review or write-up to make it a more
proactive tool for them
B. Service
Planning and Supervision
1. Monitor due dates for entire family group
a) (See Separate Handout)
b) Pull Tax Tracking. Link to Screen
2. Draft engagement letters
a)
Pull audit
review or compilation engagement letter from PPC
b)
Verify accuracy
of address and contact person
c)
Verify fee and
services to be provided and include in letter
3. Initiate
and plan recurring services
a)
Log in
engagement start dates and information gathering dates
b)
Identify due
date for the tax returns and understand client’s perspective of extensions
c)
Schedule
re-engineering session
d)
Identify due
date for the financial statements
e)
Develop time
line for the engagement and identify critical deadlines
f)
Complete the
time budget
g)
Determine if
other services are provided by the firm and obtain needed information (i.e.
employee benefits)
h)
Review
checklists
4. Request
assistance from scheduling committee
a)
Determine the
appropriate staffing and timing of the engagement
b) Submit
staff assistance forms to the scheduling committee
5. Initiate
pre-year end tax planning
a)
Timing/scheduling
b)
Review prior
year pre-year work papers
c)
Request census
for P/PS accrual, if applicable
d)
Update
depreciation schedules
e)
Request a
schedule of non-deductibles
f)
Tie trial
balance to prior year ending balance
g)
Owner’s YTD
payroll
h)
Pre-year end
client meeting scheduled
i)
Review tax
checklist
6. Identify
and plan nonrecurring services
a)
A primary
objective of client relationships
b)
Teleconferences
c)
Meetings –
formal and casual, lunches
d)
Newsletters,
seminars
e)
Think list, new
client services list
f)
Coordinate
services with the primary
g)
Set a
goal: bring three ideas to the table
7. Individual
tax planning and projections
a)
Identify
clients requiring projections
b)
Request YTD
information on a timely basis
c)
Review tax
savings checklist
d)
Coordinate pass
through entities
e)
Confirm
estimates paid with client
f)
Identify
multiple states
g)
Alternative
minimum tax
h)
IRA’s, Keogh’s,
SEP’s, Simple’s
8. Supervise
1099 preparation
a)
List types of
1099’s and purpose and [Firm Name] preparer
b)
Understand due
dates
c)
Login
anticipated forms
9. Supervise
W-2 add backs i.e., personal use of automobiles
a)
Health
insurances (not subject to FICA tax in an S Corporation)
b)
Life insurance
c)
Disability
insurance
d)
Automobiles
e)
Tax preparation
fees
f)
What percent
before insurance addbacks apply? >2%
owners
C. Service
Performance
1. Manage the
time budget (except audit engagements)
a)
Update budget
for daily progress
b)
Communicate
progress to primary on account
c)
Identify any
improperly budgeted areas
d)
Communicate
when going over budget and why
2. Gather
client information
a)
Update and mail
letter to client
b)
Obtain trial
balance in format so that it can be imported into systems
c)
Obtain
permanent file information
• Loan documents
• Lease agreements
• Employment agreements
• Changes in equity
d)
Obtain fixed
assets disposals and additions from client
e)
Obtain
retirement plan census if applicable
f)
Obtain any
other information to complete the returns: i.e. officer salaries, club dues,
etc.
3. Clear open
items unless delegated to others
a)
Research and
resolve any open items
b)
Communicate any
open items that needs primary’s attention
c)
Assign open
items to staff and supervise staff’s progress
4. Journal
entries to client
a)
Review journal
entries for accuracy
b)
Communicate all
journal entries to client
1) Ensure
client’s books are updated for all changed
c) Ensure
client understands why entries were made
5. Billing
write-up
a)
Training
package from billers
b)
Appropriate
detail
c)
Bill small
stuff early
d)
Capture
administrative charges
6. Performance
evaluations
a)
Which jobs
require an evaluation
• With financial statements
• Without financial statements
• Tax returns
b)
What type of
evaluation – short form or long form
c)
Who evaluates?
7. Updating
a) Tax tracking
b) Partner or manager in-charge
D. Service
Review
1. Signature
review tax returns
a)
Confirm who
will perform signature reviews for the family group
b)
Understand our
signature review process
2. Client management letter
a)
Thoroughly
review the client work papers and financial statements for management letter
comments
b)
Refer to the
firm’s think list, PPC’s management letter comments and other published
materials for comments
c)
Discuss
potential planning opportunities with your counterparts – tax and/or work paper
reviewers for planning opportunities
d)
Supervise the
drafting of the letter
e)
Consider
reviewing the comments with the primary before releasing a draft of the letter
f)
Review draft
letter with client
g)
Finalize and
issue letter
DUE DATES
|
Business Entities
|
Due Date
|
First
Extension
|
Second
Extension
|
C Corporate Tax Return
|
XX/XX
|
XX/XX
|
--
|
|
Corporate Estimates
|
XX/XX
|
--
|
--
|
|
|
XX/XX
|
--
|
--
|
|
|
XX/XX
|
--
|
--
|
|
|
XX/XX
|
|
|
|
|
XX/XX
|
|
|
|
Pre Year-End Tax Planning
|
XX/XX
|
|
|
|
|
|
|
|
|
Partnership
|
XX/XX
|
XX/XX
|
XX/XX
|
|
Pre Year-End Tax Planning
|
XX/XX
|
|
|
|
|
|
|
|
|
W-2 Fringe Addbacks
|
XX/XX
|
|
|
|
|
|
|
|
|
1099’s
|
XX/XX
|
|
|
|
|
|
|
|
|
Payroll Reports
|
XX/XX
|
|
|
|
Federal 941
|
XX/XX
|
|
|
|
Federal 940
|
XX/XX
|
|
|
|
State
|
XX/XX
|
|
|
|
|
|
|
|
|
S Corporate Tax Return
|
XX/XX
|
XX/XX
|
|
|
|
|
|
|
|
Non-Resident State Tax Payments
|
XX/XX
|
Late
|
|
|
|
|
|
|
|
Audit Planning
|
XX/XX
|
|
|
|
|
|
|
|
|
Audited Financial
Statements
|
See Covenants
|
|
|
|
Retirement & Benefit Plans
|
Due Date
|
First
Extension
|
Second
Extension
|
|
Pension Contributions
|
3/15
|
9/15
|
|
|
Profitsharing
Contributions
|
3/15
|
9/15
|
|
|
Calculate Contributions
|
12/31
|
|
|
|
Participant Statements
|
?
|
|
|
|
|
|
|
|
|
Pension 5500 Report
|
7/31
|
10/15
|
|
|
Profitsharing 5500 Report
|
7/31
|
10/15
|
|
|
|
|
|
|
|
1099R
|
1/31
|
|
|
|
Business Entities
|
Due Date
|
First
Extension
|
Second
Extension
|
|
Cafeteria Plan 5500
|
XX/XX
|
XX/XX
|
|
|
|
|
|
|
|
Unrelated Business
|
XX/XX
|
XX/XX
|
|
|
Income Form 990T
|
|
|
|
|
|
|
|
|
|
Tax Projections
|
|
|
|
|
Tax Returns
|
XX/XX
|
XX/XX
|
XX/XX
|
|
|
|
|
|
|
Tax Estimates
|
XX/XX
|
|
|
|
|
XX/XX
|
|
|
|
|
XX/XX
|
|
|
|
|
XX/XX
|
|
|
|
|
|
|
|
|
Contributions:
|
|
|
|
|
Simple Retirement Plan
|
XX/XX
|
|
|
|
SEP Retirement Plan
|
XX/XX
|
XX/XX
|
XX/XX
|
|
Profitsharing Plan
|
XX/XX
|
XX/XX
|
XX/XX
|
|
Pension Keogh Plan
|
XX/XX
|
XX/XX
|
XX/XX
|
|
|
|
|
|
|
5500 Reports
|
|
|
|
|
Pension
|
XX/XX
|
XX/XX
|
|
|
Profitsharing
|
XX/XX
|
XX/XX
|
|
|
Family Trust – Tax
|
XX/XX
|
XX/XX
|
|
|
|
|
|
|
|
Returns
|
|
|
|
|
Complex Trust
Distribution
|
XX/XX
|
|
|
|
Other Possible Filing Requirements
|
Due Date
|
|
* Form 8752 for Fiscal Year
|
XX/XX
|
|
and Professional Service Entities
|
|
|
|
|
|
* Sales & Use Tax Reports
|
Vary
|
|
|
|
|
* Property Tax Reports – [State]
|
X X/XX
|
|
|
|
|
* Compensation Calculation
|
Vary
|
|
|
|
|
* Restaurants Tip Reporting
|
XX/XX
|
