H&R Block Slims Down

According to the latest report, H&R Block has closed 400 retail locations. I found a quote by Block President and CEO Russ Smyth very interesting.

“We operate in a challenging and competitive environment, and to be successful we must find new ways to provide better value to our clients,” said Block president and CEO Russ Smyth in a statement. “This requires that we narrow our focus and invest in a few key initiatives that will have the greatest impact on attracting and retaining clients in our retail and digital channels, while eliminating other activities and their related costs.”

So H&R Block closed down 400 locations in order to provide better "value" to it's clients. You know what it's going to do with the money it saved by closing those 400 locations? It plans "to allocate more resources toward client growth initiatives." That's a fancy way of saying advertising.

So to provide better "value" for its' clients, H&R Block is going to spend more money on advertising. Here's an idea. Why not spend the $140 million on training employees so they actually know something about taxes? H&R Block is losing clients because the majority of the tax preparers know little about actual tax law.

Incite Tax & Accounting has a great retention rate because we actually provide value for our clients in the form of excellent tax knowledge. That knowledge comes out as we make sure our clients pay the legal minimum on their tax bill.

That being said...we sure wouldn't mind have $140 million to spend on advertising to get the word out that we are less expensive than H&R Block and we actually know taxes.

Man Shot at H&R Block Employee

I'll be the first to tell you that H&R Block is not a place you want to have prepare your taxes. I think the majority of H&R Block employees know how to operate the tax software, but know nothing about taxes.

That being said, it's frightening that there are crazy's out there that would pull a gun on you for apparently messing up your taxes. Hopefully the police can find this man and arrest him.

As serious as the murder attempt was, I think a more serious crime is that he thought H&R Block was a good place to go for tax prep.

Beat down on Economy

Every morning I try to take 15 minutes to keep up to date with the world of tax. This morning I read an article "CPA Financial Execs Upbeat on Economy."

These types of articles are a joke. Anyone who has ever taken a statistics class knows that ANY survey can be manipulated to fit the outcome you want.

Apparently there was a 28 percentage-point swing of optimism versus pessimism. I guess the CPA industry was very pessimistic. Read the article if you want, but it really is a joke. The percentages they throw out mean nothing.

My point is this: "Who cares what CPA s opinion's are about the economy?" The only thing that matters is what is really going on in your life. So many people are thriving in this economy. Your economy is the only thing that matters.

If your economy is suffering, give me a call. I'm happy to help however I can. Click this link for my phone number.

My First Blog Post

I guess this blogging thing is supposed to be really easy. But I always wondered why blogging is so popular. Why should I blog? Who wants to hear from me? or Why should I follow someone's blog? It's simple. Value Creation!

I spend every day thinking about and studying taxes. It's what I do for a living. It also just so happens that there are billions of things that I know nothing about. So if I have a question I go to google.com. No more encyclopedias.

My intention is to create value for my blog followers. I want to help you better understand the crazy world of tax. I believe that if I create value, value will be created in my own life too.