How To Prepare For Tax Season in 2017

24 December 2016, Comments Comments Off on How To Prepare For Tax Season in 2017

After the comedy show called presidential elections has ended, we got to prepare for the upcoming changes before crap hits the fan.

So after running a thorough research and statistical analysis, here’s the safest course of action to take.

1: talk to your clients:

The Easiest way to maintain your client retention rate is to give them a call ( either you or your best salesman ) and inform them that this is going to be a wild season, a lot of radical and fast changes may happen to normal regulations and you will do your absolute best to keep up with all of them.
*always show them you care*

2: Put your ducks in a row:

There’s always (yes, always) complications in the fine print of every tax filing. So double check your files before “Someone else” does and reach out to your clients to fix what needs to be fixed.

3: Fire everybody:

Well not Everybody per say but in terms of avoiding overhead, in this upcoming season over-head is lethal.
Having to pay $80k annually + their insurances and all that is going to be a massive risk to bare this season, and that’s per person!!

4: Outsource what you can:

Now a days, you start an accounting firm with 1 accountant and one secretary and outsource the rest. It is by FAR a superior model than hiring in-house people and cutting your profits to a fraction of what they could be.

So looking at all that, it’s very safe to assume that you should be heading towards outsourcing. But we don’t do “ should” and “ought to”, we’re Accountants!! only hard proven data would budge us towards anything. You will be able to save your operational cost upto 60% by outsourcing accounting back office.

So lets dot our I’s and cross our T’s .

 

Here’s what is expected from you as a CPA firm:

  • Offering audits, tax services, and filings, accounting to your clients
  • Help your clients with their compliance process
  • And above all – meet your expectations, investors, shareholders, real-estate agents and many more are DEPENDING on the financial statement prepared by your firm.

 

And that’s not all, here’s the kicker:

Statistics show that all the tasks mentioned above only take 35% of the average CPA firm.

Guess what they do with the rest of the day… routing tasks!

Its like a circus, trying to juggle between your payroll and bookkeeping and HR and the actual filing of the tax papers….etc

Most of their time is wasted on routine tasks that contributes 0% to their bottom line!

It seems crystal clear that outsourcing is the better model … by far. You can shave 35%-50% off your time by handing out mundane tasks.

Lets put things into perspective, would you rather spend 3 hours doing the ground work your self to get 100% quality ? or outsource the process and you review the returns and add your final touches in 10 min total and be around 95% quality?

Its not even disputable, you have killed off most of the work while maintaining your high quality.

There’s something fundamental that you need to realize: you did Not open a firm so you can “ sell time for money” because if you do everything yourself …. Then you’re not a business owner by any definition. That’s just a glorified job

Plus, you can only sell so much time, there’s a very defined “cap” to how much you can earn.You can only sell 12 hours at MOST daily (and that’s slavery) and it would be impossible to grow to a 7 figure business, let alone have a social life.

Why would you outsource tax preparation?

In case you are still not convinced, then let me make it crystal clear, here’s why you should outsource:

  • Its by far the most cost-effective thing you can do
  • Perfect for Avoiding overhead
  • Frees up a lot of your time to do stuff that matters
  • Paves the path for 7-figure+ scaling
  • Gets the work “done” regardless of your presence in the firm
  • Leaves room to focus on your marketing and customer accusation

You should adopt this mentality for the next season “ the less you do, the more you make” outsource anything you can and free your time. You can read more about our outsourced tax preparation services focused for CPA`s and Accounting firms.

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