Overcoming the Challenges of Tax Season Rush
Certainly, tax season is a stressful time for accountants, even those with many years of experience. It’s never easy to cram an entire year’s worth of work into a few short months, and that is not normal. Accountants are not paid for the hours worked or the number of calculations made—they are paid for their time. And because they must complete all this work in such a short period of time, they don’t have time to go home and relax or take a break, so they end up working much harder and longer hours than usual. For CPA firms and their clients, tax season presents various challenges, not least of which is the clock. The length of time it takes to file a tax return varies from company to company and from year to year, so accountants can never predict exactly how long their work will take, nor when the next client will walk through the door. The stress of tax season is a fact of life. You cannot keep from feeling stressed, but you can choose how to manage it. Here are some effective tactics that I recommend for staying calm during this stressful time of year.
1. Outsource Your Accounting Needs You can save money on seasonal labor simply by outsourcing during the busiest times of the year. However, this strategy may be harmful if your current staff is not being used to its full potential throughout the year. As the busy season approaches, many accounting firms refuse to take on new clients, which could result in the loss of a lucrative customer. By using accounting outsourcing to handle new jobs that come in during peak periods, you can increase your profitability and reputation in the market. Outsourcing the less complex work allows you to focus on more important tasks while allowing new employees to learn valuable skills that they can apply in the future. When companies are busy with peak-time operations, they may convince themselves that outsourcing their accounting functions is beneficial. However, most decide not to outsource due to a lack of trust. A closer look at security measures used by outsourcing companies may convince you that outsourcing is a better option for you than in-house systems. When CPAs outsource their accounting work to a service provider, they must determine whether to pass the savings on to their clients or keep them for themselves. In reality, accountants are not just doing paperwork— they are advising their clients, and therefore they should be compensated in some way for their services.
2. Build A Constant Communication With Your Clients
If you learn about your customers’ needs as soon as possible, you will be able to save time and avoid unnecessary work. In addition, begin auditing client-related work before the end of the year once the data has been collected. Completing your work ahead of time means you will have everything you need when you need it.
3. Know Your Clients
If you encounter difficult clients, you may find that your job becomes extremely difficult. This is because difficult clients tend to sap the majority of your energy and potential in the short term. To avoid this problem, carefully review your client list and, if necessary, advise your D clients to visit a different location. Prospective customers who are a good fit for your company should be encouraged to work with you.
4. Upgrade Your Accounting Arsenal
Businesses often use six sigma tools to improve the efficiency and effectiveness of their tax preparation processes. These tools could significantly reduce the time it takes to prepare tax returns and streamline the process. It is critical to explain the process in detail to employees, and upgrading can make it more efficient and effective.
5. Maximize Your Tax Checklist
To get a jump on the season, business owners should start putting together their tax preparation checklists. One of the best ways to stay organized is to use electronic communication. If you are still using paper, take photos of your receipts and upload them to a computer file. This prevents receipts from being lost and helps you keep track of your finances in an efficient manner.
By reviewing your employee and contractor information as tax deadlines approach, you can ensure that you have everything you need to ensure accurate and timely tax payments. Before scheduling a meeting with your clients, have them fill out and submit the tax checklist, which will save you the time it would take to prepare the paperwork for the meeting and keep it on track.
6. Practice Bookkeeping Always
If you keep track of your finances as they occur, you will have a better idea of how much tax you owe. You do not need to purchase advanced bookkeeping software if you know how to use Microsoft Excel well. And the person doing your tax return does not have to be a professional accountant; ask that person if they are one. Low-cost accounting software like Wave or Freshbooks can make your life much easier by saving you time and energy on the tedious tasks of running your business. However, even if you pay a monthly fee, the time you save is well worth it. By keeping your receipts on your smartphone and scanning the bar codes for individual purchases, you can avoid one of the most time-consuming tasks of bookkeeping. This can save you time, especially if you are working with an accountant who is located farther away than your most frequently-used scanner. All that’s required is to send the accountant a link to an images folder containing all of your scanned receipts.
7. Do Not Be Afraid To Use Tax and Accounting Software Due to the high amount of work involved in this year’s tax season, it is recommended that you use the most upto-date taxation software. Among other things, the new software will help you more efficiently keep track of your finances, increases your ability to organize information, and gives you more capacity to store data. As a general rule, newer versions tend to be less buggy and are designed to make processes easier and faster. To ensure that your staff is prepared for any new updates, we recommend that they attend virtual seminars or take courses to refresh their knowledge or prepare them for any new challenges they might face. By 2026, the global market for tax software is expected to reach $14,130 million, an increase of 9.1 percent from 2020 to 2026.
8. Get Used To Using Online Calendar Sending people links to your online calendar is more efficient than using email to schedule a meeting. Send someone a link and you both will know up-front exactly when the appointment will take place, instead of having to spend time back-and-forth scheduling the meeting. 9. Expect The Unexpected Be aware that many things can go wrong during tax season, which is why you should not overestimate your own or others’ abilities. There is a chance that coworkers will become ill. Because of the unpredictability of these situations and other events, do not delay outside work until after tax season. By the end of the fiscal year, be sure to have been as thorough as possible so that if there are unanticipated issues, you will have more time to recover before reporting results.
Are you ready for the tax season rush? Give your clients’ tax returns to a second accountant to lighten your workload and keep your productivity high. Accountants who outsource are able to take on more clients as the need arises. With BookkeeperLive’s outsourced CPA tax preparation services, you may be able to get the help you need. Contact us today for a consultation. Call us at 718- 395-9555.
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