If you’re doing a notice to reader with very few adjusting journal entries – amortization, accruals, tax provision etc. – you should be able to do it in under 3 hours. Here’s how.
- Input trial balance
- Balance statements
- Complete all top of file info (continuance/engagement letters/independence etc.)
- Scan in working papers
- Tie in schedules
- Prepare letters (cover letter/lawyer letter etc.)
- Prepare tax return
- Review file
This is how long it should take to do a file if you know exactly what you’re doing. You won’t be spending time figuring out what to do, you’ll just do it.
You can get them under 90 minutes if you’ve linked caseware to taxprep and import your trial balance.
Most accounting firms budget a minimum of 3-5 hours for a notice to reader. Or you’ll get something like, “this should take a day – day and a half.”