Accounting 101

Converting a Stressful Tax Season into a Profitable One

Tax season can be stressful - but also profitable.

Tax season is the busiest time of the year for every CPA. A lot of work needs to be wrapped up in a short span of time. We know it is no joke! Obviously, like every other profession, many issues arise for CPAs and accounting firms, such as searching for missing receipts or organizing a ledger filled with incorrectly cataloged overheads.

However, this time should not demotivate any CPA or accounting firm owner to complete the job but instead see these as opportunities to further grow the practice. Here’s how:

1. Persuade clients to add more services to your scope of work

In the language of sales, this is called up-selling. An accounting firm can grow its business by taking on more work from the clients by charging them an amount that doesn’t burn a hole in their pocket, yet gives the firm the financial flexibility to grow. If your firm isn’t doing it, now is the right time to start.

2. Cloud accounting to the rescue

We are currently in a time where almost everything relies on cloud technology. The profession of accounting embraced this technology and now it is easier to add more services because all tasks are automated and ensure that very little or no time is wasted.

For instance, payroll can be an added service as CPAs and accounting firms would already be looking over client expenses and liabilities. With the help of cloud accounting technology, one can provide payroll services at a marginal cost and yet earn more.

3. Outsourcing is also an option

This term is often met by animosity or ignorance as most people don’t understand how it actually works. Questions are raised on “security” and “reliability” of outsourcing services. It’s natural but with companies such as QXAS Inc, you can be assured of reliable professional accounting services.

For instance, bookkeeping – an extremely tedious accounting task – can be outsourced. Even though it a more time intensive activity than payroll, hiring personnel just for this can burn be an added expense for many companies. This is where outsourcing comes into the picture.

4. Keep a clear communication strategy

All CPAs should have proactive and transparent conversations with their clients. Even if the talk lasts for no more than 10 minutes, it is worth it because this way, the clients have been notified about the status of their accounts. It’s a CPA’s job to assess their needs and come up with ways to resolve their problems.

The key is to leverage technology as much as possible for completion of tasks. If you keep a holistic approach towards helping your client, he or she will have one less accounting headache to worry about each month, which they will be very appreciative about.

Laurence is a manager at QX Accounting Services & Founder of Accounting Leaders. QX Accounting offers outsourced accounting services, tax return preparation, bookkeeping and payroll compliance for small to medium sized accounting firms. Laurence focuses on freeing up small practitioners in order to get them to focus on growing their practice.

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