The cost of misunderstanding taxes

Let's be honest: between IRS ghosting, budget acrobats and explaining (again) that no, higher income isn't a bad thing, you've earned a few minutes to catch up on what actually matters.

In this issue, we spotlight a 1040-only firm model that's surprisingly genius, a CPA-turned-tech founder who's shaking up EBP audits and a podcast episode that'll have you wondering why your firm doesn't have a "Julie." Plus, TAS tips, TikTok truth bombs and the $243 billion cost of financial confusion. 

Read this, and you'll leave smarter (and maybe even a little smug).

A blueprint for a 1040-only firm. From automatic extensions to gift baskets for referrals, Brenda Cannon, CPA, has a modern playbook for small firm success.

Want to expand your bookkeeping career? Intuit's Expert Network seeks professionals who want flexibility, tech-driven tools and a supportive community.

Just nod along knowingly. This TikTok creator nails private accounting's annual cycle of "make the budget, fudge the budget, explain the busted budget."

Think your firm is a great place to work? Applications for Accounting Today's annual Best Accounting Firms to Work For list are due by May 9th.

From audits to algorithms: How one CPA took on tech

Most auditors grumble about inefficiencies—Kelly Mann, CPA did something about them. After 12 years in public accounting and launching her own firm, she saw how broken Employee Benefit Plan (EBP) audits could be and decided to fix the process herself. Enter AuditMiner, a tool born not from a pitch deck but from lived experience, a cancer diagnosis and a whole lot of grit. In this Q&A, Mann shares how she made the leap from CPA to tech founder and why “done” beats “perfect” when you’re building something that actually solves a problem. -Janet Berry-Johnson

What specific challenges or inefficiencies in the audit process sparked your idea to create AuditMiner?

After 12 years in public accounting, specializing in audit, I intimately understood the inefficiencies plaguing EBP audits. The manual data collection process was time-consuming and prone to human error; standardization was lacking and every auditor approached similar problems differently, creating inconsistency and redundancy. 

The move into tech wasn’t something I planned; it evolved naturally from seeing a clear need in the audit process. After launching my CPA firm in 2018, I gained firsthand visibility into process inefficiencies without the constraints of traditional firm structures. When my cancer diagnosis came in 2020 during the pandemic, I found a different perspective on what mattered. I simply identified an opportunity to improve a process I understood deeply and started putting one foot in front of the other. Developing AuditMiner during treatment wasn’t part of some grand career transition plan; it was a practical response to a problem I knew needed solving. Sometimes, the most meaningful paths aren’t the ones we deliberately chart but the ones that unfold as we respond to the circumstances around us. 

As a CPA, what unique perspective did your background bring to developing a technology solution that resonates with auditors?

My experience as a practicing auditor was invaluable in developing AuditMiner. I wasn’t just theorizing about problems; I lived them daily. This first-hand knowledge allowed me to design a solution that addressed auditors’ actual pain points rather than perceived ones. 

My background as a firm owner was equally important. I understood the business side—the pressure to be efficient while maintaining quality, the challenges of resource allocation and the constant balance between client service and profitability. This dual perspective of practitioner and business owner helped create a solution that doesn’t just solve technical problems, but delivers real business value to firms of all sizes.

What advice would you give to other accountants who see inefficiencies and want to build a solution or product to address them?

First, trust your instincts. If you’re experiencing inefficiency, others are too. Don’t dismiss your ideas simply because “that’s how it’s always been done.” The accounting profession needs innovation from those who understand it best—practitioners like you.

Second, find your community. My experience at the AICPA Leadership Academy showed me the power of connecting with like-minded professionals who challenge conventional thinking. These relationships provided encouragement, feedback and eventually became my first customers.

Third, start small but think big. I initially expected AuditMiner to generate around $30,000 in revenue, but we reached $1 million in our first calendar year because we addressed a genuine need. Begin by solving a specific problem exceptionally well before expanding.

Finally, embrace authenticity. I built my business around my strengths rather than trying to conform to traditional expectations. This authenticity resonated with clients and employees. Your unique perspective is valuable; don’t diminish it by trying to fit a conventional mold.

This interview was edited for brevity and clarity.

Master the TAS like the pro you are

Have you ever felt like you're shouting into the IRS void on behalf of a client? It's time to call in reinforcements. Christine Gervais, CPA, breaks down how to effectively leverage the Taxpayer Advocate Service to resolve client issues. From understanding the types of cases the TAS accepts, like economic hardships or systemic delays, to submitting a well-organized Form 911, she has actionable steps to navigate the process.

Why this matters: With recent IRS staff reductions and growing IRS wait times, TAS can be your secret weapon to cut through the red tape and get your clients the resolutions they need without the usual hair-pulling. (Insightful Accountant)

Your firm needs a 'Julie'. Here's why.

Who's steering the operations ship in your firm? In a recent episode of the Accounting Insiders podcast, host Gary DeHart chats with Julie Smith, practice manager at Harper & Co CPAs and co-founder of two firms herself. Smith unpacks what a practice manager actually does (hint: it's way more than managing calendars), from aligning the team to refining processes to keeping clients happy. She also shares tips on finding "right fit" clients, knowing when to bring in a manager and why fractional practice management might be the perfect toe-dip for your firm.

Why this matters: If your firm feels like a group project with no project manager, this episode is your sign to make changes. A great practice manager can keep things running smoothly and help the whole team level up. (Accounting Insiders)

11.2% 

Surge in auto sales in March as consumers rushed to buy ahead of the 25% tariff on imported cars, which went into effect on April 3. (ABC News)

• Bye-bye basis: IRS nixes a rule nobody liked anyway
• A look at 25 years of corporate drama shows most companies survive the fallout just fine
• Get used to that hold music as the IRS plans to trim 40% of its workforce
• This list of business structure red flags is a must-skim
• RSM has tips for making tax functions less "hot mess" and more "well-oiled machine"

Tax confusion costs Americans big time

Financial illiteracy cost Americans more than $243 billion in 2024, about $1,015 per person. A significant contributor? Tax misunderstandings. A national poll by the Tax Foundation revealed that more than 61% of U.S. taxpayers lack basic knowledge about income tax filing, including concepts like tax brackets and deductions. This lack of understanding leads to costly mistakes, such as missing out on eligible tax breaks or triggering audits by claiming ineligible ones. Plus, misconceptions—like believing that earning more money pushes all income into a higher tax bracket—deter people from pursuing promotions or additional opportunities.

Why this matters: Tax pros play an essential role in educating clients so they can make informed financial decisions and avoid costly errors. In a world where financial literacy is lacking, your expertise isn't just valuable, it's indispensable. (Tax Foundation)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.