Why You Should Fix Your Tax Season Workflow Now
With the 2022 tax season behind us, now is the perfect time to start proactively planning for next year. Starting now allows firms maximum time to ensure their management practices are up to date and efficient. Firm managers must learn from their previous mistakes and implement adequate solutions. For accountants, tax season is stressful, requiring long hours and heavy workloads. There is no need to add the additional stressors of an inefficient workflow and poor communication. Begin working now to reduce and mitigate issues plaguing your firm before next January.
Ensure Workflow Efficiency
The integrity and functionality of workflows are vital throughout the tax season to ensure all tasks are completed efficiently and without errors. Optimized workflows can be a powerful tool, but there is no one-size-fits-all approach. Different firms have different needs, so it is critical to tailor workflows to your specific requirements. Without workflow efficiency, you may sacrifice the quality and timeliness of work, putting you at risk of falling behind your competitors.
The first step to establishing efficient workflows is to analyze the current systems in place. Ask yourself: Were last year’s workflows efficient? Has employee turnover from the previous year affected standard workflows? Then, evaluate your options. Test your ideas under different conditions. What happens when an employee is out sick? What happens if a sudden shift to remote work is required?
Ensure workflows are robust and do not grind to a halt under any conditions, both plausible and implausible. If the last two years have taught us anything, it’s that situations once believed to be highly unlikely may occur again.
Once all testing is completed, have fresh eyes evaluate the workflow on paper or in review sessions. Make sure whoever evaluates the plan is not shy and is willing to give their honest thoughts. During this process, it is essential to note any signs that indicate workflows need to be revamped.
First, look at your workflow documents. If pulling these documents together requires digging through a box that has not been opened in years to find a binder, it may be time to reconsider your approach. Take note of which people, groups and tools are mentioned in your workflow documents. Are they up to date? If your firm has recently made the switch to cloud software, ensure it is documented. If people mentioned in the documents have left the firm, update your records. As a result of the pandemic and the Great Resignation, much has changed over the last two years. If your records do not reflect these changes, it may be time to return to the drawing board.
The most critical and daunting sign your workflows may need review is feedback from your CPAs. Do not assume complaints from your employees about lack of time to complete tasks are due to poor time management. If your firm’s ability to get jobs done on time is a chronic issue, workflows may be the cause.
Once you decide to revamp your workflows, it can be challenging to know where to begin. Updating workflows affects everyone at a firm. Ensure stakeholders at all levels and from all areas are included in the process and are open-minded about change. Employee support when changing workflows is also critical. Ensure the appetite for change is clear to prevent falling back into old processes.
One option for firms may be to vet software solutions that augment workflows. Changes to workflows take time and effort; beginning now ensures all kinks are ironed out before the busy season hits accountants across the country next January. After a bit of rest following the end of this tax season, come back and re-evaluate your workflows to ensure you don’t repeat the same mistakes from year to year.
Prepare for New Developments
Sometimes changes happen, such as tax code alterations like those we’ve seen in recent years. Be prepared and don’t let them startle you.
Ensure your software is equipped with the required tools for new developments. If changes are made, watch for emails or communications from your service providers acknowledging the changes and explaining how they plan to deal with them. If you do not receive any communications from your software providers, initiate inquiries as soon as possible to prevent yourself from falling behind. Some software companies may not follow new developments closely, so do not assume they are already handling the changes.
Additionally, provide your clients with any information they may need and let them know that you are aware of any new changes and will address them accordingly. When you send these communications, send them directly to clients and not to a generic marketing email list. You want to prevent your communications from being auto filtered into a promotional tab where your clients are less likely to see them. By developing separate distribution lists for regular promotional materials and critical communications, you increase the likelihood your clients will open and read your emails.
Furthermore, don’t just quote the tax code that is changing. By identifying examples and scenarios, you can help clients to better understand what these new developments mean, how it will affect them, and how your firm will handle these changes. It also helps to make the information easily digestible and provide links to further details.
Finally, don’t panic when new developments crop up – remember that communication is your best tool. Communicate with your staff, vendors and clients to ensure everyone is prepared and knows how the developments will impact them.
Grow Your Firm through Efficient Workflows and Communications
Now that busy season is over, it is time to ensure all kinks are ironed out in your workflows and new development communications before next year. Beyond reducing stressors, focusing on these aspects can drive value by reducing cost, generating additional revenue and reducing time wasted. With the right proactive plans in place and prompt communication with clients, you’ll project a sense of competence, leading to greater trust from clients.
Client trust is essential to growing your firm and ensuring clients return year after year. Taking proactive measures ensures your firm’s preparedness throughout tax season. No matter what disruptions pop up, you will be prepared to manage uncertainty, mitigate costly reactive measures, and ensure adequate resourcing.