how to gather and manage client data efficiently and securely
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How to Gather and Manage Client Data Efficiently and Securely

Today client data is the most important asset and liability of a company. This article details how you can gather and manage client data efficiently and securely.

As an accounting professional, you gather, review, and manage a lot of client data. At times, it can be overwhelming—especially if you have to call and email your client several times before they get you their information. Storing that information in several places can also slow down casework. But managing client data doesn’t have to be a headache. This article will detail four tips on how to gather and manage client data efficiently and securely.

Because of recent developments made in practice management software for accountants, there are modern solutions available. Software helps make every step of the process—from gathering client information to organizing information—as efficient as possible. Below are four ways to securely and efficiently gather and manage your client’s data.

1. Client Portal 

Client portals can transform the way you work with clients in a variety of ways, but perhaps the most important function they serve is enabling easy, secure information sharing. Sending sensitive files to clients through unencrypted email is not secure. Faxing, mailing, and sharing documents in person are all time consuming and inefficient. Client portals make file sharing as simple as uploading a picture to social media, while keeping client data more secure than it is on your hard drive.

Through a client portal your clients can upload and review documents, ask questions, complete requests, and more. You’ll no longer have to follow up with a client multiple times just to get the information you need from them. 

Plus, your clients will enjoy the convenience of a client portal! In a recent study Canopy commissioned, taxpayers said the number one way accountants can improve how they work with clients through technology is by offering an online way to send and receive documents. That being said, only 2% of respondents said their accountant offered a portal. The use of a client portal will definitely help you gather and manage client data efficiently and securely.

2. Digital tax organizer 

Still asking yourself how to gather and manage client data efficiently and securely? Well Another way to accomplish this is to send your client a digital tax organizer. As you’re likely familiar with, a tax organizer allows clients to fill in the personal information you need to prepare their tax return. It generally takes the place of an intake appointment. 

A digital tax organizer takes this streamlining a step further by allowing clients to fill out their information online, generally through a client portal—eliminating the need for paper organizers.

3. Transcripts 

IRS transcripts are notorious for being convoluted, but in the hands of an accounting professional who knows how to read them, they can be incredibly insightful. After all, they reflect a record of actions that have taken place in an individual’s tax history according to the IRS. 

Two common ways of pulling client transcripts include e-Services and the Practitioner Priority Service line. Chances are if you’ve used either, you’ve been put on hold for a good chunk of your day. Or you’ve waited for transcripts to be delivered for hours—maybe longer if you’ve had several years worth of transcripts to pull. And waiting for delivery isn’t even the most inefficient part of the process. 

Instead of easy-to-digest information, transcripts are full of codes to be deciphered line by line. While using IRS transcripts more often is a step in the right direction of better serving your clients, e-Services and the priority line are not the most efficient options. 

Modern accounting software offers a better way to pull transcripts. Third-party transcript software will pull transcripts (using e-Services) without the inefficiencies that come along with the IRS website. Wait time decreases drastically when transcripts are delivered instantly to your computer. 

4. Cloud-based customer relationship management (CRM) software 

So far we have discussed how to gather client data more efficiently and securely, but what about managing it?

Well, once you’ve gathered client data, the next step is to manage that data effectively. To efficiently manage contact information such as birthdays, social security numbers, phone numbers, dependents, and more, you should keep a master contact list in one location. Information can easily get misplaced if it’s stored in Excel and your email and a Word document. Not to mention, it’s unlikely that every contact is getting updated in every location. 

Cloud-based CRM software can offer a wide variety of ways to help organize your contact list. You won’t need back-up contact lists that are scattered in different places around your computer or office. Information will be updated in real time, so everyone on your team always has access to current information. 

A good CRM software often offers robust filtering capabilities, the ability to take client notes, and more. Using cloud-based CRM software geared specifically toward accountants should level up the way you manage client information and provide a lot more value than storing client information in a spreadsheet. 

How to Gather and Manage your Client Data Efficiently and Securely – Conclusion

While it may sound daunting at first to invest in new tools to gather client information, pull IRS transcripts, manage contact lists, and more, the good news is there are secure solutions available. 

Definitely be sure to look into utilizing a client portal, a digital tax organizer, as well as transcripts. Lastly, cloud based customer relationship (CRM) software will help you manage it all.

Questions about how to gather and manage client data efficiently and securely? Feel free to reach out to me or leave a comment below.

For more articles like this, check out this section of the blog.

Jason Schow is a professional CPA with a background in finance and business technology. As a proven multi-talented executive, Jason has served as CFO, business analyst, and product manager at various leading tech companies in Utah. Currently, he serves as Product Manager at Canopy where he is responsible for leading the product team to continually identify customer needs and build delightful solutions. He earned both his Bachelor’s and Master’s degrees in Accounting at Brigham Young University. Connect with him @CanopyTax.

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