TaxAssist Accountants Annual Conference 2013

Agenda Welcome Business development updates Technical updates

Coffee Network Update Practice Management Break out sessions

Lunch Fireside chat with Mark Fordham

Business Development updates

Industry trends Our brand New marketing material PR Customer satisfaction HR

Fees

Fees have stabilised in all areas. Downward trend has ceased but have not returned to 2006 levels.

Fees

76% of firms have same staff levels as 2011 and

72% expect no change next year

Fees

Number of firms with over 500 clients is dropping

2% (from 4.5%)

Issues

Billing and collection number 1 concern

CPA Practice Survey 2013

Income sources

Audit Down from 21% - 17%

Accountancy 48% (up from 43%)

Taxation 17% of practice income

Payroll and bookkeepingDown from 21% - 16%

Growth in the top 20

• Number 20 in 2013

• Feature article and advert

• Aiming for number 17 or 16 this year

2012€ (m)

2013€ (m)

Growth % YOY

PWC 299.0 300.0 0%KPMG 233.0 246.0 6%Deloitte 135.0 144.0 7%E&Y 125.0 130.0 4%GT 71.0 82.1 16%BDO 54.6 50.6 -7%RSM Farrell Grant Sparks 32.0 32.0 0%Mazars 27.5 27.5 0%Baker Tilly Ryan Glennon 13.7 14.3 4%Moore Stephens Natans 13.7 13.8 1%Crowe Horwath 12.6 13.0 3%IFAC Accountants 12.1 12.0 -1%Russell Brennan Keane 9.5 9.6 1%Smith & Williamson 6.8 7.0 3%PFK O'Connor Leddy & Holmes 4.9 5.1 4%JPA Brenson Lawlor 4.6 4.7 2%Ormsby & Rhodes 4.7 4.6 -2%OSK 4.3 3.8 -12%Hughes Blake 4.0 4.0 0%McInerney Saunders 2.9 3.0 3%TaxAssist 2.0 3.0 50%

Growth % YOY

2012€ (m)

2013€ (m)

TaxAssist 50% 2.0 3.0GT 16% 71.0 82.1Deloitte 7% 135.0 144.0KPMG 6% 233.0 246.0Baker Tilly Ryan Glennon 4% 13.7 14.3PFK O'Connor Leddy & Holmes 4% 4.9 5.1E&Y 4% 125.0 130.0McInerney Saunders 3% 2.9 3.0Crowe Horwath 3% 12.6 13.0Smith & Williamson 3% 6.8 7.0JPA Brenson Lawlor 2% 4.6 4.7Russell Brennan Keane 1% 9.5 9.6Moore Stephens Natans 1% 13.7 13.8PWC 0% 299.0 300.0RSM Farrell Grant Sparks 0% 32.0 32.0Mazars 0% 27.5 27.5Hughes Blake 0% 4.0 4.0IFAC Accountants -1% 12.1 12.0Ormsby & Rhodes -2% 4.7 4.6BDO -7% 54.6 50.6OSK -12% 4.3 3.8

Growth rates

TaxAssist posting 50% growth YOY 16% next highest- Grant Thornton Average growth: 1-3%

Where are we going with the brand?

It’s the small guy versus the big guy

Not the market leader, late to the category Look at their category with fresh eyes Plucky underdog Impact is out of proportion to budget Asking you to pick a side

What is a challenger brand

Challenge the way the customer shops

Challenges what people think about the industry

What is a challenger brand

Avis

Challenger brand examples: RaboBank

Ireland’s first online bank‘Life’s more interesting when you’re direct’

What can we challenge?

Communication issues How people buy the service The industry stereotype

New creative

Newstalk campaign

4 month campaign

2 week bursts followed by 1 week in the month

Mixture of 30 second ads and 5 second stings

More primetime slots

National marketing

New creative

Creative Director at McConnells, Leo Burnett & Irish International

Best Copywriting 2012 at the Newspaper Awards

Black Shark at Kinsale 2000 for Radio Ad of the Millennium.

Campaigns for : Nissan, Kerrygold, Donegal catch, Centra

New creative

New Marketing toolkit pages

Where to find the Marketing Toolkit

Switcher campaignQ1 2014 Updated tools available

including

o New adverts*o New leaflets*o Letter to clientso Business review guideso Postero Tweetso Editorial/ press releases

State support Q2 2014

Updated tools available including

o Start-up guideo Presentationo Template business planso 9 point cash collection

systemo Adverts/Flyerso Tweetso Editorial/ press releases

Innovation Vouchers

€5,000 innovation voucher from Enterprise Ireland

Voucher used to research new product or service

Used in conjunction with research/education institutions, e.g. ITs, universities

Start Your Own Business SYOB

Announced budget 2014 Eligible for people unemployed for over 12

months Set up as sole trader Exempt from income tax for first 2 years

Seed capital

Available for new businesses if the individual starting was previously PAYE employee

Claim back income tax for previous 6 years Maximum of €100,000 Most sectors qualify for this scheme now

Jobs Plus

Rewards employers for taking on previously long term unemployed staff

€7,500 - unemployed for over 12months €10,000 - unemployed over 24 months Paid monthly over 2 years

State support

Panel of representativesStarting Jan 2014

Marketing materials

o Letter

o Poster

o Advert

o Tweets

o Presentations

Farmers

Public relations

PR Tracker

Local PR

National PR

Public Relations

Year AVE

2013 (to date) €187,000

Customer satisfaction

If you don’t measure it, you cannot manage it! CX Index can help us capture feedback, to

measure, identify and retain at risk clients. Drives people on to social media

Customer satisfaction

Customer satisfaction

Survey 4 times a year Lets clients tell you what they wouldn’t in person Opt-in Benchmarking against other practices available

Client Factsheets

Network news

Spring 2014We need your ideas!

Tuesdays & Wedesndays the busiest days 11am- 12pm our busiest time Sunday twice as busy as Saturday 30% of lead data being filled in!

Leads

Google AdWords

Search Engine Optimisation

Radio

Marketing Literature

Public Relations activity

Website Development/Support

Email Newsletters

Daily Newsfeed

Google places

Client factsheets

Digital leaflets

Social media

Marketing toolkit

Content for website

BACA

Staff day – 10 staff attended

Purpose of day:

o Retention of key staff, make then feel a valued part of the network

o Encourage relationships between staff from different practices

o Sharing of TaxAssist culture

o Sharing of TaxAssist structure

o A voice for staff

o Potential for future partners / buyers

Staff

Staff

Key issues:

o Communication – support site, weekly email

o Awareness - tools, helpdesk, marketing toolkit, support, Support Centre structure)

o Involvement/delegation

o Training needs: CCH, Kashflow

o Staff forum

HR

Technical updates

New courses

CCH Central: 2 phases

5 per class

Practical, hands on sessions

January 16th & 23rd

July for Tax update day

Training academy

Technical

Finance Bill (No. 2) 2013Current issues with Revenue

Finance Bill (No. 2) 2013

Home Renovation Initiative1. Advanced approval from Revenue

2. Revenue assign unique contract code

3. Contractor informs Revenue of payments received

4. Individual applies to Revenue for tax credit

Finance Bill (No. 2) 2013Changes to VAT

• Refund Revenue any VAT claimed on invoices not paid within 6 months

• Cash receipts basis threshold increasing to €2 million from 1st May 2014

Finance Bill (No. 2) 2013Extension of certain reliefs for farmers

• Stock relief

• Retirement relief on leased farmland

Top slicing relief abolishedPSWT for incorporated practicesEntrepreneurs ReliefStart your own business relief

Finance Bill (No. 2) 2013Other measures

• Reduction in tax relief on medical insurance

• Increase in DIRT rate to 41%

• Expansion of living city initiative

• Reduction in Pension fund threshold to €2 million

• Extension of CGT relief on purchase of investment property to 31st December 2014

Finance Bill (No. 2) 2013Other measures (cont’d)

• Jobsplus payments added to list of exempt income

• Changes to R&D tax credits

• One parent family credit replaced with Single Person Child Carer credit

PRSI Changes for 2014PRSI to be paid on investment income Lower rate of employer’s PRSI reverts to 8.5% from the 1st January 2014

Current Issues with RevenueContractors project

• Motor and travel

• Employment of family members

Revenue enquiries based on accounts extractsVAT registrationsSEPA changes

Network Update

31.10.12 31.10.13 Growth

Franchise Areas 21 25 4

Fee Bank€2,758,217 €3,763,178 €1,004,961

Number of clients 2,709 3,921 1,212

Average Spend

€1,018 €960 €829

2013Clients Fee Bank

October281

€228,018

June 107 €89,108

January 139 €131,739

December/August

UK

UK – FAMBO progressing final stages to be completed by year end. European investors.

International Canada - Due to sign a Master Franchise

Agreement with Rina Mancini this side of Christmas. Territory will be the Greater Toronto Area of Ontario which has a population of circa 6 million.

Australia & NZ - In initial stages of conversations with interested accountants.

USA – Finalising the US franchise disclosure document.

SEPA & Standing Orders

Existing standing orders will convert automatically

After 1st February 2014, all new standing orders must be set up using BIC and IBAN details instead of NSC and Account Numbers.

Bank of Ireland

Additional services

80% want to sell additional services Not at this stage 67% don’t want to outsource this Heavy sales approach

Additional services

€200 & €300 – majority consider this a ‘worth their while’ commission

Additional services: Top 4

Pensions Insurance Mobile phones Financial advice

Additional services

Local referrals Blue Face Audit Insurance National Relationships

Practice Management1. Have a plan

2. Have a structure

3. Hire the right staff

4. Set targets for staff

5. Rate your clients

6. Price correctly

7. Manage your cash flow

Have a plan

Where are you now?

Where do you want to get to?

How are you going to get there?

Have a practice structure

Sales/Marketing

Production

Admin

Hire the right staff Manager Qualified Senior Junior Admin

CPA salary survey 2013

Managers - €37,000 Other qualified - €30,000 Senior – €23,000 Junior - €16,000 Admin - €18,000

Set targets for staff Monthly billing targets

65% do set a weekly work programme

65% no billing target

3 times salary

Rate your clients A,B,C,D Profitability Quality of the records etc. Getting books and records in Delay in responding to queries Train your clients/Standard operating manual

Price correctly

Everyone under prices Legacy issues D Clients – C Clients CPA Survey

Fees

Sole trader income less than €250k €1,159

Limited co. turnover less than €1m €2,172

Income tax PAYE earner

€223

Self employed tax return – rental income

€427

Cashflow

Standing Orders Don’t file/Half up front – New clients Manage work flow Don’t start work that can’t be finished Consistent/persistent/delegate/process