You made it through another year! And while it might feel like the last filing deadline just fell off the calendar, now is the perfect time to pause and catch your breath before diving into preparations for the upcoming busy season. Taking time to reflect and plan now will help ensure your firm is ready to tackle whatever challenges the next tax season brings.
Let’s look at the essential steps every accounting firm should take to prepare for a successful tax season ahead.
Start with a thorough end-of-year busy season review
Before jumping into planning mode, you need to understand what worked and what didn’t during your last tax season. Ideally, you and your team have already had a post-tax season debrief meeting to identify and address your busy season challenges. If not, that’s OK—but make it a priority for next year to gather feedback while experiences are still fresh.
Consider implementing these review strategies:
- Provide staff with a tax season scorecard to gather candid feedback (Academy members, you can find one in the online learning library).
- Encourage team members to share specific pain points and successes.
- Document feedback while it’s fresh rather than waiting months.
- Create a system for tracking issues in real time during the next tax season.
Here are the key areas your post-season assessment should cover:
Client communication and documentation
- Engagement letter process and signature management
- Information gathering procedures
- Management of missing or incomplete information
- Document scanning workflows
- Return delivery methods
- Billing and payment collection processes
Internal processes
- Tax preparation procedures and tools
- Return review processes and timing
- Team communication effectiveness
- Staff training needs
- Technology utilization and pain points
- Team collaboration and morale
Encourage every team member—both those directly handling these processes and those impacted by them—to document their experiences during tax season. Whether it’s celebrating wins or identifying bottlenecks, these real-time insights are invaluable. When your team sees that their feedback leads to meaningful improvements, they’re more likely to stay engaged in making each tax season better than the last. Consider creating a simple system for capturing these observations, whether through a shared document, regular check-ins, or even a dedicated Slack or Teams channel. The key is making it easy for your team to share their thoughts while the experiences are fresh.
Optimize your tech stack
Based on your assessment, now is the time to evaluate and streamline your tech stack. Modern firms are increasingly paperless, and having the right tools in place before tax season starts is crucial.
Essential elements of a modern accounting firm’s tech stack include:
Client-facing tools
- A modern, intuitive website with secure client portal capabilities
- Easy document upload and sharing solutions
- Electronic signature and payment processing options
- Automated client touchpoint systems like those from SafeSend
- Apps for virtual meetings (Zoom) and scheduling (Calendly)
Internal efficiency tools
- Cloud-based storage and collaboration platforms.
- Tax preparation software, and workflow and automation tools like the ones from SurePrep
- Internal communication tools like Slack or Microsoft Teams
- Meeting and scheduling solutions
Remember to be intentional with technology adoption. The goal is to simplify and streamline, not complicate, processes with too many applications. Make changes gradually and implement well before January to allow time for training and adjustments.
Stay current with tax law changes
Tax laws continue to evolve, making it crucial to stay informed about changes that could impact your clients. Here are key resources for staying updated:
- IRS website and newsletters
- AICPA updates and educational materials
- State-specific Department of Revenue communications
- Tax software provider updates
- Continuing education courses
- Industry podcasts and publications
Consider implementing regular team meetings to discuss important updates and ensure everyone is prepared to address client questions during busy season.
Prioritize firm culture and employee well-being
With the accounting profession facing ongoing staffing challenges, maintaining a positive firm culture during tax season is more important than ever. Some key strategies include:
- Offering flexible work arrangements.
- Implementing regular check-ins to monitor workload.
- Encouraging proper work-life balance.
- Planning team activities during tax season.
- Providing mental health support and resources.
- Creating opportunities for professional development.
Prepare your clients for success
Help your clients contribute to a smooth tax season by providing them with a comprehensive preparation checklist. Essential items should include:
Personal information
- Social Security numbers and birth dates
- Prior-year returns
- Banking details for refunds
Income documentation
- W-2s and 1099s
- Investment income
- Business or rental property income
- Other income sources, such as gambling winnings, scholarships or jury duty
Deductions, adjustments and credits
- Charitable contributions
- Education expenses or childcare costs
- Business expenses
- Student loan or tuition payments
- Investment expenses or contributions
- Qualifying home improvements
- State or local income taxes paid
- Real estate or personal property taxes
- Vehicle-related expenses
Final thoughts
Tax season doesn’t have to be overwhelming. By taking time now to assess, plan and prepare, you can create a more efficient and less stressful experience for both your team and your clients. Remember that successful tax seasons are built on a foundation of thorough preparation, streamlined processes and a supported, well-trained team.
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