Are you ready to take advantage of the many new business and practice improvement possibilities that busy season offers? When I was in practice, this was actually my favorite time of year. By following a few best practices, my six-person firm was ready for the weeks ahead and able to make the most of them.
Learn from the past. Many firms conduct a busy season analysis in May. However, take some time now to review what you experienced last year and decide how to learn from and avoid past mistakes. Here’s one issue that may arise again this year: Clients tend to think they can send their information late whenever a last-minute tax bill is passed. Be sure to communicate with clients now to let them know that, despite delays in Congress, your firm is ready to begin working on their information as soon as you receive it. In addition, consider ways to pace yourself so that your energy lasts through the season. Review your past habits – burning yourself out early or putting off tough returns – to see if there are changes that will make the season a little easier.
Review your processes. Examine your work flow and other processes and identify potential improvements. Do staff members know how to handle data files as they arrive? Are certain people assigned to specific types of business or individual returns or do they draw work from a communal pool? It makes life easier when everyone is familiar with the processes and their part in them. In my firm, we also held staff meetings every week beginning the second week in January to share new developments, discuss and solve common problems and report software glitches or other stumbling blocks we faced.
Cull the herd. Preparing for the season includes looking back over all of our clients as we recently completed yearend planning or are now preparing tax organizers. So it’s a great time to think about whether the client is really right for the firm. Maybe they’re difficult to work with or don’t pay on time, or maybe their needs just don’t really match the level of services you offer. Some of these borderline clients will come to mind immediately, but others won’t really be apparent until you see their prior year’s information and are reminded that you don’t want to face another year wrestling with that return. There may be new incentives to reconsider some clients this year, given new Affordable Care Act reporting and the extenders bill, which was not signed by the president until mid-December.
There’s one instant benefit when you trim your less appealing clients: Your attitude immediately improves. That will enhance your dealings with other clients and prospects, and improve your chances of getting more high-quality referrals. Of course, you’ll also have more capacity for new business opportunities because you’ve gotten rid of the less desirable clients. In the end, you probably won’t lose any income and you will have made life easier for yourself and your staff.
Related resources:
Spot opportunities. In a previous column, I talked about “termination row,” a list of Post-It notes that I used to keep on the bottom of my computer monitor with names of clients who caused more stress than they were worth. Along the same lines, during busy season we also made a list of opportunities that we spotted as we reviewed information and met with clients. Does it look as if a client needs assistance on certain best practices in cash flow, financial reporting issues or insurance concerns? If it’s a new client, maybe you would recommend amending a prior return due to past errors or legislative changes. Make notes about potential opportunities in your client management system or simply create a stack of files that should be revisited when the season is over. It’s easy to forget key observations and conversations when the summer comes around, so keep an eye out for future options now and be sure to document those opportunities.
Play hooky. Surprise yourself at least once during the season and take a day off. My favorite time to take a break was the weekend before March 15, when I was completely engrossed in business returns and needed a breather. Encourage others in the firm to take some down time, too, whenever possible. It will lighten the stress and refresh everybody, making it that much easier to do your best during the final weeks.
I wish you the best of luck over the next few months. I hope your season is satisfying and productive. Small Firm Solutions will go on hiatus during the season, but we’ll be back in May with more advice and ideas for small practitioners.
–Carl Peterson, CPA
Carl Peterson, CPA, is the AICPA’s Vice President of Small Firm Interests. Have questions for Carl? Contact him atcpeterson@aicpa.org or 651-252-4618.