The Hindu Business Line : Playroom in a CPA office

WOOING customers away from the giants of the tax preparation industry is never easy, but one creative CPA in Tennessee is hoping toy trains, Teletubbies and teddy bears will give him an edge.

Mr Stephen Nestor, with four children of his own, knows how hard it is to cart the kids from activity to activity while also running the necessary, but boring, errands of everyday life — filing taxes, for one.

"My wife can't seem to go anywhere without taking kids with her," Mr Nestor told the Tennessean. "We have two little children, so we know how tough it can be to juggle."

So when Mr Nestor set up his new tax business, US Express Tax Service in West Nashville, he kept frazzled parents, and their restless children, in mind.

His front lobby is filled with a train table, toys, books and a TV showing children's videos, with the hope that his family-friendly atmosphere will attract parents from the surrounding area. Even his logo is kid-friendly: It's a fast-moving, multicolored freight train inspired by his train-obsessed three-year-old, Samuel.

Mr Nestor figures customers will spend at least 15-20 minutes with a tax preparer. "In that time period, the child can play in the front part of the store."

His welcoming attitude toward children is just one way Mr Nestor believes he can set himself apart from the competition — the formidable H&R Block and Jackson Hewitt. While Mr Nestor called the companies "leaders in the industry," he also noted that they are straying from their original focus by selling mortgages and 401(k)s. "I think that's turning off a lot of people. We're going to focus on tax preparation," he said.

140 and out

THE UK Treasury Minister, Ms Ruth Kelly, has announced the demise of the National Savings Ordinary Account, which has been in existence for over 140 years.

She gave the following statement in the House of Commons on 20 January:

"National Savings and Investments will shortly launch a new savings account in response to changing customer needs. The new account will replace the Ordinary Account, which was introduced in 1861 and has not kept pace with changes in the savings market. The Ordinary Account is expensive to run and therefore only offers modest returns to savers.

"The new account has been designed to meet these changing customer needs and will be straightforward and simple to operate, offering customers greater flexibility in the way they manage their savings. They will be able to make deposits at post offices, by telephone and by post and they will be given an account card which will allow cash withdrawals at post offices or ATMs in the LINK network.

This means the new savings account will be cheaper to run compared to the Ordinary Account and the savings will be passed onto the customer in the form of better interest rates.

"In order to give existing Ordinary Account customers plenty of time to consider what to do with their savings, they will be able to continue using their account in the normal way until July 31, 2004. After that date, no further deposits can be made and any withdrawal will have to be for the full balance to close the account. In the meantime, National Savings and Investments will be writing to Ordinary Account customers explaining their options, including information about the new account and a simple transfer form for those wishing to transfer their savings into the new account."

The Minister has not made clear what the tax status of interest credited to the new account will be.

(Source: AccountingWeb.)