1. Keep up with the latest tax regulations and changes
This is an obvious one, but as tax laws and regulations change frequently in Australia and New Zealand, it is essential to stay informed about these changes to ensure that your clients comply with the latest Australian Taxation Office (ATO) requirements for the financial year. Keep abreast of the latest tax rates, deductions, and exemptions, and communicate any changes to your clients.
2. Prepare your tax accounting clients
Before tax time begins, a tax agent should communicate with their clients about the information they need.
It is always better to ask each of your clients for a list that is tailored to their needs. This may include necessary financial documents, such as income statements, expense receipts, and bank statements, that may inform deductions in their tax return.
Communication is key to ensuring that your clients are well informed about their tax obligations and responsibilities. Regularly communicate with your clients using mobile-friendly software to provide updates, address their concerns, indicate what is out of scope and answer any questions they may have.
Also, ensure that your client data is securely stored and is accessible when you need it.
3. Plan your capacity for tax return season
Before the start of tax season, it is important to ensure you have the correct level of capacity to complete your tax returns promptly.
If you prepare your resourcing before the start of tax season, you can factor in any extra team members, either in-house accountants or offshore and any outsourcing you may need to see you through the busy tax season.
4. Review your tax accounting software and maximise your efficiency
Modern-day tax accountants are finding it more and more necessary to have fast and powerful tax software on their side. There are different tax software options available, some stand-alone and others as part of more holistic tax practice management software. It is important to choose software that will fit your tax practice's needs and requirements right now and future-proof you as you grow and scale.
We would recommend cloud-based tax preparation and lodgement software, as this can significantly improve the efficiency and accuracy of your tax season. You will have the potential of automation improving the speed at which you can fill in multiple tax returns and connect you to real-time client data anywhere, anytime.
Going entirely paperless and using client portals almost exclusively as a replacement for snail mail is the unquestionable future for modern-day tax accountants. It is important to educate clients to submit their end-of-year information electronically. Using a client portal will also make things more convenient for your clients. In addition, connecting to your clients' bookkeeping applications via API to streamline the compliance process will give you back time by not needing to rekey data.
5. Review your tax practice fees
Before the start of tax season, it is a good idea to ensure you are not shortchanging yourself by conducting an annual review of your invoices over the past 2-3 years to ensure you’re offering a competitive, reasonable fee structure at your tax practice. Remember that it is good to have a mix of billing types where appropriate to do so. Your fees should factor in your costs plus a reasonable profit margin.
6. Work out your tax time schedule in advance
Do an audit of last year’s workflow to see what worked and what didn’t. Then, use this information constructively as you look at how you’re going to schedule your jobs for the upcoming tax season.
Think about how you can be able to fit your schedule around your clients’ availability. Many clients like to get their tax time tasks done early, giving you more leeway to take on new clients or focus on other service offerings.
7. Remember your other tax practice service offerings
Tax season can sometimes be all-consuming for tax accountants, with many accounts and tax returns to prepare. By following the above advice, you'll be equipped with the right mindset, tools, and resources for an effective tax season, which will give you time to fit in the other service offerings that differentiate you from your competitors, such as business advisory services for your clients.
Start your journey towards a streamlined tax season
To summarise, planning and preparing for tax season is best tackled in a holistic manner, with forward-thinking around pieces of the puzzle, such as your workflow, resourcing, and getting across any tax regulation changes. You will also need to know enough about tax software to ensure you've got the right tools to maximise efficiency during your tax season.
At the end of the day, your tax practice should be able to start using efficient and reliable tax software that can save your practice valuable time in the process of lodging tax returns and improve your client satisfaction. If you’re looking for a fast and powerful system from a company with over 30 years of experience in the sector, then you should consider using Access tax preparation and lodgement software.
We have helped many tax professionals implement tax software to help them prepare, lodge and track tax returns faster and more accurately, streamlining the process for accountants, both small and large, who lodge millions of returns each year. We have a structured and thorough implementation process for you and the experience to guide you through the process successfully.
To learn more about our tax preparation and lodgement software to start your own journey towards a more streamlined tax time, talk to a specialist today.
For more information on how you can streamline your services and meet the demands of an evolving tax sector, take a look at our blog: 8 tax time tips to set your tax practice up for success.
Access Tax will help small tax accountants grow their practices through a fast and powerful tax return online in the cloud. Book a demo today.
For larger practices, we have APS software, which is used by 3 of the big 4 top accounting firms, with a suite of powerful tax, compliance and practice management solutions. Book a demo today.