Effective Communication Strategies for Tax Season Client Management

Tax season comes with a whole lot of chaos – both for the tax professionals and the clients. Everyone is worried about meeting deadlines and filing on time and accurately. Managing client relationships, meeting deadlines, and ensuring accuracy can be overwhelming. The first step to make the process seamless is effective communication. It is important in navigate through this busy, high-demand period successfully. In this article, we’ll explore communication strategies to help you manage clients, reduce stress, and increase sales leads during tax season.

The Importance of Communication in Tax Season

According to the CPA Practice Advisor survey, On average, CPAs spend 9.3 hours per week on client communication, with a target to reduce this to 7.2 hours through more efficient practices. When you look at this number is a holistic view, this can be a lot.

During tax season, clients are anxious about meeting deadlines and ensuring their taxes are filed correctly. Clear communication helps alleviate their concerns, builds trust, and demonstrates your expertise. Effective communication strategies can:

1. Reduce client inquiries and phone calls
2. Increase client satisfaction and retention
3. Minimize errors and missed deadlines
4. Enhance your firm’s reputation
5. Generate referrals and new business leads

Pre-Tax Season Preparation

Client Notification: 

Communication is important at all stages. Before the season begins, firms and professionals must send out timely notifications to the clients. These reminders should include:

• Tax season deadlines: Highlight tax filing deadlines, submission dates for important forms (e.g., 1099s, W-2s), and any extensions they may need to consider.
• Required documents: Send a comprehensive checklist of the documents and information clients need to gather, including income statements, receipts, and tax-deductible expenses. This needs to be sent way in advance to avoid last-minute hassle.
• Contact information: Reinforce how and when clients can contact your firm, whether via phone, email, or a specific communication tool. Having this information clear and visible can reduce confusion and ensure clients know exactly where to turn with their questions. This can also help avoid chasing clients unnecessarily.

Communication Channels: 

Different clients prefer different communication methods. While some may prefer emails for record-keeping, others prefer quick phone calls or even text messages for urgent matters. Before the season commences, it is best to align both teams in terms of what will work best:

• Email: This is ideal for sharing detailed information and the pile of documents that the teams need.
• Phone calls or video conferences: This is more helpful for complex discussions of work, enabling personal attention to each of the matter.
• Communication tools: This is the most accepted and appropriate method of communication, allowing seamless communication in one place. It also prevents unnecessary back-and-forth when looking for necessary details.

Establish preferred communication methods:

A common portal for all communication is essential, especially during tax season. During this time, clients are constantly worried and hence, they are looking to access their financial documents and tax forms easily. Using a well-organized portal also helps the firms ensure that the documents are secure. It enables them to check their tax status and ask questions without relying on back-and-forth emails. Firms need to ensure that:

• The portal is user-friendly and easy to navigate.
• All essential documents and forms are readily accessible.
• It is mobile-friendly, so clients can use it on the go.
• Security protocols, like two-factor authentication, are implemented to protect sensitive information.

During Tax Season

When the tax season begins, it gets busy. There is so much happening. Clients are sometimes nervous and are constantly seeking support. Tax professionals, who can communicate thoroughly are able to build better relationships with clients, ensuring they are in this in the long term:

To ensure seamless communication during the tax season, firms should ensure the following:

1. Regular Updates: Unless clients know everything, they will be behind your backs. Keeping them in the loop by providing regular status updates on the tax returns can put their minds at ease. These updates can be short, and to the point, and include important milestones, such as document review status, the completion of return preparation, and the expected date of filing. This will help keep clients informed in every step of the way. 

2. Proactive Communication: There can be a multitude of issues that might occur before the situation arises. If you foresee delays or identify missing documentation, it is important to reach out proactively. This approach will help prevent last-moment panic and reinforce the commitment to deliver excellent services. Professionals should also address potential issues before they become bigger problems.

3. Clear Expectations: Tax season is hectic for everyone, and clients sometimes underestimate how long certain processes can take. It is important to set realistic expectations way ahead in time about timelines – from document submission to return completion. Managing expectations can help reduce frustration and ensure that clients understand what needs to be done on their end to meet deadlines.
   

4. Multiple Contact Methods: Choose contact methods that meet the criteria of both the clients and your team. While some clients prefer phone calls for urgent matters, others may prefer emails of text messages. By offering a variety of contact methods, you can allow clients to communicate in ways that are convenient to them. However, when setting out the right contact methods, it is important to be mindful that you keep your boundaries in place, ensuring the lines between the personal and professional do not blur.

5. Client Feedback: Once the tax season comes to an end, professionals should seek solicited feedback from the clients about the communication process. The questionnaire could include what worked well, what could be improved, etc. A simple post-season survey can provide invaluable insights into how your communication strategy can be improved for better future seasons.

Effective Communication Tools

Utilize these tools to streamline communication:

1. Client Portals: Secure, online platforms for document sharing and communication.
2. Video Conferencing: Conduct virtual meetings for convenience.
3. Automated Email: Send automated reminders and updates.
4. Project Management Software: Organize tasks, deadlines, and client communication.
5. Mobile Apps: Offer mobile apps for easy communication.

Managing Client Inquiries

Establish efficient processes for handling client inquiries:

1. Designated Contact: Assign a primary contact for client inquiries.
2. Response Timeline: Establish a response timeline (e.g., 24-hour turnaround).
3. Knowledge Base: Create a knowledge base for frequently asked questions.
4. Call Tracking: Track and monitor client calls.

Sales Leads Generation

Leverage tax season communication to generate sales leads:

1. Value-Added Services: Promote additional services (e.g., financial planning, audit representation).
2. Referral Incentives: Offer incentives for client referrals.
3. Cross-Selling: Identify opportunities to cross-sell services.
4. Client Testimonials: Use client testimonials in marketing materials.

Best Practices

Implement these best practices for effective communication:

• Clear Language: Avoid technical jargon; use plain language.
• Timely Response: Respond promptly to client inquiries.
• Empathy: Demonstrate understanding and empathy.
• Transparency: Maintain transparency throughout the tax preparation process.
• Follow-up: Follow up with clients after tax season.

Is your CPA or accounting firm overwhelmed during tax season? Discover how Finsmart Accounting’s outsourced tax preparation services can help.

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– Reduce your workload

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[Calendly link: https://calendly.com/maanoj-shah/calendar]

Select a time that works for you, and our team will guide you through:

– Customized outsourcing solutions

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Get Ahead of Tax Season. Partner with Finsmart Accounting Today!

Maanoj Shah

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.