Tax Season Staffing Strategies: How to Ensure Adequate Support

The tax season is a time that stresses CPAs and accounting firms out more than the usual time. Many reasons and factors that become the guiding force. One of the key challenges that firms face is that of finding qualified talent – resources who understand the nitty gritty of tax laws, and evolving scenarios and can work on exceptions. Many firms wait until the last minute to find temporary tax professionals, which leads to a compromise on quality, while paying a higher charge due to increased demand. 

This reactive action poses several challenges:

• Decreased client satisfaction
• Reduced profitability
• Missed opportunities to upsell high-value services like Client Advisory Services (CAS)

In this article, we’ll explore proactive tax season staffing strategies to ensure adequate support, highlighting the benefits of partnering with specialized staffing providers.

The Consequences of Last-Minute Staffing

A recent survey revealed:

– 75% of CPA firms struggle to find qualified staff during tax season

– 60% report decreased productivity due to inadequate staffing

– 50% experience increased costs from last-minute hiring

Key Characteristics of Ideal Tax Season Staffing Partners

To avoid these pitfalls, consider partnering with tax solution providers that offer:

1. English-speaking, pre-qualified, pre-vetted staff: They should be proficient in GAAP and US tax, ensuring quality work.
2. Tech savvy: The staff should be familiar with various accounting software and systems.
3. Flexible payment models: Look for partners who can provide flexible, scalable pricing to match your firm’s fluctuating needs.
4. Rapid onboarding: Find pre-qualified staff who require very less training and onboarding
5. Specialized expertise: Onboard staff who are experienced in tax and accounting, including CAS.

Benefits of Proactive Staffing Partnerships

By partnering with specialized staffing providers, CPA and accounting firms can:

Increase efficiency:

By proactively augmenting your staff during tax season can help ensure the timely completion of tax returns. This not only improves productivity but also allows teams to focus on core, revenue-generating tasks. This also allows firms to perform strategic planning and CAS.

Enhance client satisfaction:

It is important to understand that during tax season clients are equally stressed as the firms. Hence, when they receive high-quality, prompt responses and services, the trust strengthens. They are more likely to recommend your services to others. Providing proactive staffing also ensures meeting deadlines and exceeding expectations, which helps build strong long-term relationships.

Improve profitability:

Last-minute hiring can be expensive, especially when the tax season is just around the corner. They are in high demand and everyone is looking for competent tax professionals. A proactive approach allows you to channel your expenses into higher-margin services like CAS, improving the overall profitability of your firm.

Reduce stress:

When you have adequate staffing levels, your teams are no longer overworked and overwhelmed during the tax season. A well-staffed operation helps reduce stress, ensuring better work-life balance, and reducing the attrition rate in the long run. This season comes with a lot of workload fluctuations. This proactive approach helps balance that, minimizing burnout. 

Best Practices for Tax Season Staffing

Consider the following strategies to optimize your tax season staffing:

• Internship Programs:
  
  There is no doubt in the fact you will need additional support during this season. Introducing internship programs will help you gain access to experts without bringing them on full-time and increasing costs.

1. 1. 1. Partner with local universities or colleges to hire accounting interns
      2. Utilize internship platforms (e.g WayUp)
      3. Leverage professional associations (e.g., AICPA)
         

• Temporary Staffing Agencies:
  
  Staffing agencies have access to high-quality resources who can work with you during the peak season and help reduce the burden.
  
  What you need? 

1. 1. 1. Specialized agencies (e.g., Robert Half)
      2. Online staffing platforms (e.g., Upwork, Freelancer)
         

• Seasonal Staffing Partnerships:
  
  More often than not, the resources you need during the tax season are seasonal and will become irrelevant for you once the season is over.
  
  What can you do?

1. 1. 1. Collaborate with other firms to share resources
      2. Consider co-employment arrangements
         

• Outsourced Accounting Services:
  
  One of the best ways to address the seasonal influx of work, while ensuring that the teams are not burnout is through outsourcing. When you outsource your tax preparation, you get access to a team of experts who are experienced and can provide all the services you are looking for. Choose a firm that provides seasonal resources and flexible payment models that allow you to avoid long-term commitments.

1. 1. 1. Partner with firms specializing in outsourced accounting
      2. Utilize cloud-based accounting services
         

• Cross-Training Existing Staff:
  
  Your teams can step up but only when they possess the required knowledge and skills. This is possible when you engage in regular cross-training and learning and development programs.

1. 1. 1. Develop existing staff skills to handle increased workload
      2. Provide training and support
         

• Flexible Work Arrangements:
  
  The workforce has undergone a massive evolution than the previous generations. Modern-day tax professionals want flexible work arrangements, promoting better work-life balance. They no longer are willing to work for 70-80 hours a week.
  
  What can you do?

1. 1. 1. Offer flexible schedules or remote work options
      2. Attract experienced professionals seeking work-life balance
         

• Contingent Workforce Planning:
  
  As firm owners, it is important to be prepared for the worst. Have a backup plan, a team that you can rely on when things do not go as planned. A contingent workforce planning helps ensure that teams are not overwhelmed.

1. 1. Develop a plan for unexpected staffing needs
   2. Identify potential staffing gaps and solutions

By exploring these strategies, CPA and accounting firms can:

• Increase efficiency

• Enhance client satisfaction

• Improve profitability

• Reduce stress

Don’t wait until the last minute to address tax season staffing needs. Proactive planning and partnership with specialized staffing providers can ensure adequate support, enhance client satisfaction, and drive profitability.

Partner with Finsmart Accounting

Finsmart Accounting offers expert tax season staffing solutions:

– Pre-qualified, English-speaking staff

– Technology-agnostic professionals

– Subscription payment models

– Rapid onboarding within 48 hours

– Specialised expertise in tax and accounting

Write to us at connect@finsmartaccounting.com to get started on your tax season planning. 

Maanoj Shah

Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.