Don’t make tax season the season of missed opportunities 

It's true that most small accounting firms generate a substantial chunk of their yearly revenue during tax season, and that can be something to feel good about. But in the heat of  tax season, many accounting firms fail to see the big opportunities tax season offers for making the rest of the year more prosperous and next tax season even better.

Here are some simple things you can do during tax season that will go a long way toward advancing your practice year-round.

* If you have a busy practice, simply increase the fees for your bottom-of-the-barrel clients (every practice has them!) by 10-20% over your regular fee increase. It seems a little daring at first to many accountants, but once you take this simple profit and quality boosting step, you'll wonder why you didn't do it sooner. The advantages are many.  Experience proves that you're very unlikely to lose any significant revenue, and may indeed increase it. That's because your higher fees will offset the "loss" from the most troublesome clients that leave. Better yet,  you'll have fewer headaches and you'll get the much needed extra time that you deserve to finally enjoy supper with your family or build a higher quality practice. Just do it!

* Remember, every appointment with your clients presents practice-building opportunities. By spending just a few extra minutes with each client while preparing the tax return, you can look for clues for additional revenue-generating services you can offer after tax season. This has the added bonus of giving your clients the impression that you are adding true value to what would otherwise be a routine tax preparation process. Of course, one additional ideal service for individuals is Personal Financial Planning. Younger children claimed as  Dependents present excellent opportunities for college education financial planning, teenagers in high school are red-flags for financial aid application and loan assistance, and recent retirees with changing needs offer lucrative rollover, insurance and other long range retirement planning opportunities. Discuss all these needs with your clients at your face-to-face meetings with them during the tax season and schedule the next financial planning appointment with them before they leave your office. This can turn out to be far more lucrative than the initial tax planning engagement.

* Operational efficiency is the key to increasing profitability and getting some much needed free time. Review your entire tax prep process from start to finish. You'll be surprised, but with this simple step you are likely to find new ways to save time in each of the steps you review. Even if it is just few minutes here and a few seconds there, it can add up to substantial time savings. A case in point: one practitioner found that simply buying a better stapler and a rubber stamp that said "client copy" saved 60 seconds per return. One minute saved multiplied by several hundred returns is, of course, important, so examine your entire practice and take nothing for granted. A good place to start realizing substantial time savings it to make it easy for your clients to organize their tax data. Strongly encourage your clients to make at least some use of the tax organizers you send them. In fact, it is a good idea to send tax organizers even to the clients who don't fill them in. Ask them to simply check off the items from last year that they still have and attach the applicable documents to the corresponding section of the tax organizer. If an item like a 1099 is not there, ask them to flag this with a short note. Better yet, provide online tax organizers that clients can use to organize their tax data throughout the year. It's worth your while even if only a small number of your clients initially take advantage. The use of online tax organizers is rapidly growing, so don't overlook the possibility.

* Another means of increasing operational efficiency is transforming your firm's website into a fully functional online office that is a 24-7 extension of your bricks and mortar tax practice. How? Let clients check their tax refund at your website. Use an online document management system where clients can retrieve their tax return anytime, anywhere. Let them use financial calculators like "Should I refinance my home mortgage" or "Should I buy or lease my car" to get answers to frequently asked questions. The possibilities are endless.

* It's a simple thing, but often  neglected. Get feedback on how you are doing and ask for referrals. There is nothing unprofessional about it. In fact, study after study shows that clients view this as a sign of ambition and your trust in them, not as a sign of weakness. One of the most successful dentists in our area uses a tasteful tabletop sign that says, "The best compliment you can give us is to let your friends and loved ones enjoy the same service that you are enjoying."

There's much more to tax season than just tax preparation. Make the most of it, and from all of us at AccountantsWorld, "many happy returns!"

I am sure some of you may have your own ideas about spotting opportunities during the busy tax seasson.  Please share your thoughts with your peers here.

Sincerely,

Dr. Chandra Bhansali
Co-founder and President.