Managing a CPA firm is not a cakewalk in any way. CPAs face numerous hurdles time and again. CPAs can be knocked for six especially during the tax season. They also need to be in tune with the new tax rules and need to cater to their customers promptly. On top of this, they need to venture into new avenues to expand their business. The platter of CPA firms is full of loads of tasks. During the tax season, there is a high possibility that they have to work day and night against the clock to meet deadlines and handle the tax season workload. This certainly can take a toll on the accountants. Some other challenges that CPA firms regularly face is attrition, searching for new staff, recruitment, and training staff members. This takes too much time and can turn out to be costly for CPAs. There is no doubt that running a CPA company is no mean feat.
During tax season, the workload is immense and is undoubtedly tiring. CPAs are on the ball to handle the high number of tax returns. In addition, they also have to look after their daily chores. So, how can CPAs handle the tax season workload? Or rather, what can they do to lighten their burden during the tax season?
The following are some tips CPAs should follow to ease their tax season workload:
Strategize and Prioritize
CPAs need to plan beforehand how they will tackle the tax season jobs. Accountants should be aware of the approximate number of tax returns they will receive and accordingly they should prepare a plan on how many tax returns they will handle per day so that they can complete the task on time. For this, they need to keep in mind the number of staff they have.
Evaluate Staff Requirements
Before the tax season commences, CPAs need to gauge the number of staff members they currently have and how many personnel they will need to handle the tax returns of the clients. If there is a shortfall on the number of workers required, CPAs will need to recruit additional workforce to brace the tax season. Another alternative to tackle the shortage of staff is to opt for outsourcing to meet tax deadlines.
Make sure that you have ample time to get documents from your patrons so that you do not have to go through the hassle of obtaining documents at the last minute while working on tax returns. Accountants need to regularly follow-up with their clients to get their documents. An easy way to receive records is to establish an online document portal whereby clients can upload their documents on the portal instead of submitting hard copies. This will be trouble-free for both the clients and CPAs.
It is very important to have a proper system in position so that you can keep track of the progress of each client’s tax preparation and processing task. Keep a close watch on tax returns completions and send reminders to clients who have not yet submitted their documents. CPAs also need to follow-up with staff members on the status of tax preparation, and if required, they need to drive the team to complete the task faster.
Set Realistic Goals
CPAs do not need to overpower themselves during the tax season. One thing they can do is to set realistic and attainable goals so that they are not beleaguered. Take one step at a time, and the tax season targets will be achieved without any stress.
If CPA firms don’t want to get the tax season to get on their nerves and want to counter the tax season workload smoothly, then the best option is outsourcing. CPA and accounting companies are collaborating with the tax preparation outsourcing providers of late. These providers handle the mammoth task of tax processing and preparation. Outsourcing certainly gives respite to CPAs amidst all the tax season chaos.
Top reasons why CPAs should partner with an outsourcing accounting service provider for the tax season:
CPAs do not have to bother and worry about recruiting additional staff to manage tax season workload when they associate with an outsourcing partner. The accounting outsourcing firm will take care of the tax returns and processing tasks. Therefore, the in-house team will have ample time to focus on other jobs. Also, the tax processing service works out cheaper than hiring an additional employee.
Concentrate on Growth
The CPA team must focus on the business so that it can thrive. To achieve this, they need to allot time and energy to the company. However, it can be taxing if there is a shortage of workforce. Therefore, outsourcing can be the way out in such a situation. The outsourcing provider can handle tax returns, tax preparation, and tax processing. Joining hands with an accounting outsourcing provider can give breathing space to the CPA team members so that they can focus on business growth.
CPAs and accountants will not have to lose sleep over familiarizing themselves with amendments to tax laws when they choose to outsource. Instead, they can shift their focus entirely on their clients. The outsourcing partner will assist with the tax legislation and guide you on compliance management. With outsourcing, you can work quickly since the outsourcing provider is there to help you with the legislative support.
It is a difficult time for most of the CPA firms during the tax season. They find it strenuous and exhausting to handle the chaos during the tax season. A lot of CPAs are outsourcing their tax season workload to professional outsourcing companies to reduce the burden on the staff members. Moreover, a lot of CPAs are finding outsourcing to be economically viable. For CPA firms that are finding the tax season arduous, they should go for outsourcing.