Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/49996
WORKFLOW TIPS I FIVE TIMESAVING TIPS FOR A SMOOTHER TAX SEASON t's that time of year again — time to steel yourself for the work that will begin fl owing in just a few weeks. For me, January is always like the calm before the storm. You know it'll hit soon, and you're powerless to stop it. T ere's an ever-present anxiety because you're not sure how bad this one's going to be, so you expend a lot of energy thinking of ways to prepare. Some may tell you that it's too late; that you've done all you can do. T at it's time to just hunker down and wait for it to start, hoping it will be over before you know it. In truth, it may be too late to drastically change the course of your tax season. However, some relatively easy workfl ow strategies can help you realize timesaving effi ciencies and help you bet er weather the storm. By polling fi rms formally and infor- mally, we've uncovered fi ve tried-and-true strategies for a smoother busy season. Not surprisingly, most agree that a lit le pre-season planning and preparation can go a long way. Communication T is is critical. It won't eliminate unexpected kinks in your busy season plan, but it will help to minimize them. Your fi rm should have a clear commu- nication strategy for clients, staff and any third-party resources you plan to utilize during busy season. Don't assume that everyone is already on the same page. Depending on the size of your practice and your relationship with individual clients, communication may be in person or in an engagement let er. Key elements should include the following: • Clearly state when, how and where to submit tax information. • Give the deadline for tax data, making it clear that failure to meet that deadline results in an automatic extension • Provide disclosure and consent forms. • Use this as an opportunity to manage expectations, emphasizing con- straints on your time. If you have people going into the fi eld, arm them with the list of information needed for tax season so they can address it in person with the client. Make it part of your year-end planning to tell your client when their work is scheduled and get their buy-in. This gives them an opportunity to alert you to scheduling conflicts such as vacations, board meetings, etc. It's important to clearly articulate your expectations for your staff – hours, weekend work, opportunity to work remotely, contingency plans in the event of an unexpected absence due to illness, weather, or personal mat ers (if this varies from your normal HR policy). Additionally, if you're using temporary or seasonal workers, or outsourcing, now is the time to inform that resource of what to expect in terms of a time com- mitment in order to avoid misunderstand- ings or over-commitments later. Finally, set a staff schedule for when you will meet during busy season. Allow some fl exibility, but lock in key dates for things like determining when to extend clients to avoid wasting time trying to schedule management discussions on the fl y. If you're planning to meet once a week to review workloads and schedules, do it the same day and time every week and set a standing, manageable agenda that will allow participants to get what they need quickly to balance work and address potential resource issues. Capacity Planning Two important themes to pre-season prepara- tion: Use what you learned last year as a guide, and do as much as possible before the season really gets going. For example, you might want to run last year's extension report and prepare these same extensions in early January. 22 January 2012 • www.CPAPracticeAdvisor.com Look at how you handled the larger, more complex client returns last year to see exactly when the return was prepared and reviewed, and build it into your scheduling for this year. Research major tax law changes in advance, and add that intelligence into the appropriate client tasks within your workfl ow soſt ware. For example, you might do a data scan to identify all the clients that will be impacted by the new tax legislation this year, then fl ag them and add instructions to those tasks universally so the preparer and reviewer have the information at their fi ngertips. Coordinate your scheduling and client responsibility early. T is tip goes back to communicating expectations and creating a plan of accountability. Utilize software tools like workflow and scheduling to enforce your plan. Mail your completed organizers in early January, and utilize available technology resources for your client data (i.e., Goldman Sachs provides online access to clients' 1099s, etc.). Prepare for Problems Let's face it – there will be glitches, so it's best to expect them and prepare for how you will handle them when they arise. Create a schedule that carves out time to plan for and address potential workload and bot leneck issues. Use real-time scheduling and workload management tools to get an up-to-the- minute view of all work in progress by person and status to see who's buried in preparation or review, who's overbooked and who's under-booked so you can make those on-the-fl y capacity planning decisions. For example, one fi rm has a weekly meeting between the scheduler, the audit team leader and the tax team leader during which they review issues, identify chunks of time and confl icts, discuss new unexpected business, and locate additional resources. T is allows them to gain a seven-week outlook and move work dynamically within the workfl ow system. Part of the purpose of this meeting is pre-emptive problem solving. It's possible that you can schedule tax season well in advance, but there will always be issues that come up. Another fi rm relies on its workfl ow soſt ware to see clients with 3/15 and 4/15 fi ling deadlines to quickly view and proactively address any missing informa- tion or other issues holding up the client return. Armed with that view, this fi rm can proactively work with clients and staff to address the bot lenecks. Of course, having a real-time view of the work also empowers accounts receivable to stay on top of billing for all the returns that went out that week. Digital Work Environment The specific software applications your fi rm employs varies according to the size of your fi rm, the services you offer and perhaps even your culture. I think we can all agree that, in addition to some soſt ware basics (MS Offi ce, Adobe), the following tools enable you to work digitally: dual monitors, scanners, workfl ow system, electronic fi le storage (DMS or shared network fi ling tree) and a portal. Some of these you can still put in place before the upcoming busy season. You don't have to make a career out of picking a scanner; just get started. Use the resources available to help you make a good selection quickly: consultants, technology-focused publications, net- works and associations, peers, AICPA and state society resources, and websites like TotallyPaperless.com. Now is the time to make sure that your staff knows how to properly use the tools at their disposal. An Adobe refresher and a plug-in toolbar can empower partners and managers to review online.