Are You Prepared for Next Tax Season?

Many of you use October, November, and December to make changes in your business for the upcoming year. As you make those decisions, I strongly urge you to consider the following:

Advisory Services. Many clients do not see value in a completed tax return; however, they can see value in the advice you provide to them that either provides tax savings or meets a personal or economic need. How do you provide advisory services? How do you get paid for the valuable advisory services that you provide?

Client List. An engagement for tax services is a two-way street: It must be a good deal for both you and the taxpayer. If it is not a good deal for you, you are not required to engage with that client! Trust me: If it was not a good deal for the client, the client would not work with you.

In addition, any client that is consistently rude or abusive to you or your staff should be terminated. A positive work environment leads to happier workers and satisfied clients. Abusive clients are toxic to the entire tax office. Their dollars are not worth the greater damage they cause.

Pricing. Prices for everything are going up: high demand, low supply. The tax world is the same! When you are the cheapest service in the area, it reflects upon you – and it devalues the work that others do (e.g., “The guy down the street only charges $100!”). The tax law is getting more and more complex as Congress puts more and more incentives into the Code. Your pricing should reflect that. In my experience in working with tax professionals, price increases do not drive away customers when communicated clearly and service levels are appropriate.

Staffing. It is hard to hire good tax professionals. If you need to hire someone, start the process early, pay well, and deliver a work-life balance. No one wants to work 60 hours per week, either during peak season or offseason. Make yourself stand out from the firms that work their employees to death.

Tech Stack. Paper processes are 20th-century processes; many clients value and expect the smooth use of technology to complete their tax obligations. Figure out which programs work best for you and how you can get them to integrate and talk to one another to build efficient workflow practices.

Have a wonderful holiday season and new year. I am excited about all the opportunities in 2023 – and I hope you are as well!