How long before the thought of prepping up for Tax season makes you jittery? It is, undoubtedly, a hectic time for CPAs and accounting firms. Tax professionals struggle constantly with multiple deadlines and client expectations quickly catching up and an enormous amount of regulatory changes. However, a well-structured tax season checklist can help ensure smooth operations, reducing stress and helping maintain high-quality services. It is not just about what you do during the season, it is also about how you prepare for the season and what you do afterward for your clients. This guide will walk you through creating a tailored tax season checklist.
Pre-Tax Season (July-September)
Laying the groundwork for a successful tax season is incredibly important. The sooner you start preparing, the better it is when the peak season arrives.
1. Research and Evaluate New Software and Technology:
- Every business is different. Find which software can help automate tedious tasks, improve accuracy, and save time.
- Assess your firm’s current needs and identify gaps where new tools, such as tax preparation software, client management tools, or document management systems, might boost efficiency.
- Consider cloud-based solutions for real-time access and collaboration.
2. Plan Technology Upgrades and Implementations:
- Once you identify the tools, outline a plan for installation, training, and integration with your existing systems.
- Plan upgrades at a time that causes minimal disruption to existing workflows.
- Ensure that your technology aligns with tax season needs, such as automation in data collection and tax filing.
3. Attend Industry Conferences and Training Sessions:
- Attending relevant conferences, webinars, and seminars helps you stay updated on the latest trends.
- Networking with other professionals can offer insights into handling common challenges or finding the right tools.
Pre-Tax Season (October-December)
Implement new software and technology
- Work with IT teams to integrate new software into your firm’s operations.
- Make sure all tools are operational and compatible with existing processes to avoid complications during tax season.
Update existing systems
- Review and update your current systems for client management, bookkeeping, and tax filing.
- Implement patches, perform system maintenance, and ensure all software is running smoothly and efficiently.
Test and troubleshoot
- Conduct thorough testing of new technology and workflows.
- Simulate real-world scenarios to identify and resolve any potential issues in software or workflow before tax season begins.
Train staff
- Provide staff training on the new systems and processes to ensure everyone is comfortable using the tools.
- Offer continuous learning opportunities to boost proficiency and reduce errors during the busy season.
Seasonal Staffing and Support Planning:
- Identify vendors with pre-qualified talent
- Establish relationships with staffing agencies
- Develop contingency plans for rapid scaling
- Create streamlined onboarding processes
- Define seasonal staffing budget and requirements
Review and update:
- Client contact information
- Staff training records
- Tax season policies and procedures
Analyze and improve:
- Previous tax season’s workflow and efficiency
- Client communication and feedback processes
Prepare and review:
- Tax season budget and financial projections
- Firm’s tax season goals and objectives
Client Preparation (January-February)
- Send client notifications:
There is always a chance that the clients will miss out on important dates and key to-do’s. Communicate with clients about deadlines, documentation, and any changes in tax laws or processes. Provide clear instructions and checklists to guide them through the document-gathering process. Make sure to send engagement letter updates too.
- Review and update client agreements:
The client agreements need to be regularly reviewed and updated. Make sure that all engagement letters are updated with current fees, payment terms, and scope of work. Make sure both parties are clear on the scope of work to avoid any misunderstandings in the future.
- Gather and organize client documents using secure methods:
When preparing for the tax season, request and organize important client documents as early as possible. Prior-year tax returns, W-2s, 1099s, and other financial records are some of these. Use secure methods to collect and store this sensitive information. Schedule client meetings and consultations to review documents and answer any of the questions they might have.
Tax Law and Regulation Review (January-February)
Review IRS updates:
- Tax law changes and regulations
- Forms and publication updates
Monitor state and local tax updates:
- Changes in state and local tax laws
- New regulations and requirements
Stay current on industry-specific tax regulations:
- Healthcare, finance, or non-profit sectors
- Attend webinars and training sessions
Tax Season (March-April)
Execute seasonal staffing and support plans:
- Onboard seasonal staff and vendors
- Scale up or down as needed
- Monitor staffing performance and adjust
Provide tax preparation and planning services:
- Individual and business tax returns
- Tax consulting and advisory services
Manage client communication and feedback:
- Respond to client inquiries
- Address client concerns
Review and quality-control tax returns:
- Maintain accuracy and completeness
- Compliance with tax laws and regulations
Post-Tax Season (May-June)
Review tax season performance:
- Identify areas for improvement
- Analyze client feedback
Evaluate staff performance:
- Assess workload and workflow
- Provide feedback and coaching
Update firm policies and procedures:
- Incorporate lessons learned
- Improve efficiency and productivity
Plan for next tax season
By following these steps, you’ll create a comprehensive tax season checklist tailored to your firm’s needs.
Finsmart Accounting: Your Tax Season Partner
At Finsmart Accounting, we understand the challenges of tax season. Our expert team provides:
- Outsourced accounting services
- Tax preparation and review support
- Accounting software and technology solutions
- Staff training and support
Partner with Finsmart Accounting to:
- Increase efficiency and productivity
- Enhance client satisfaction
- Reduce stress and burnout
- Focus on high-value services
Write to us at connect@finsmartaccounting.com to ensure a successful tax season.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
