Too many Tax Returns? Here's how you can cope with them.
CapActix Business Solutions
Offshore Accounting Solutions to CPAs, Accounting Firms & SMEs for Accounting, Tax, Analysis & CFO services in the USA
As the era of paper-filed tax returns is coming to an end, taxpayers and tax professionals have started filing taxes electronically more now than ever. As estimated by the IRS, 92% of the 2022 returns have been e-filed. The total number of taxes filed for the year 2021 is 164,246,000. For Tax Season 23, we can expect more than that.?
Challenges of the Tax Season
You can never be prepared enough for the Tax Season, considering the challenges and surprises it brings along. Here are a few of the many challenges of the Tax Season.?
Dealing with the Rush: Due to the stringent deadlines for tax filing, CPA firms need to prepare and submit tax returns within 2.5 months.??
Dealing with Sales Tax: Clients have started shopping across borders even more and the number increases by the second. So, CPAs need to be aware as the Sales Tax Rates differ from state to state.?
Dealing with Tax Updates: The IRS recently updated that the Reporting Rules have been changed for Form 1099-K. So, CPAs are required to always be on the lookout for updates. Mistakes can be consequential.?
Dealing with new Business Models: Technology has revolutionized the way businesses perform operations. Firms have switched to E-commerce or online modes of operations. This impacts CPA firms as they need to invest in training.??
Dealing with Customizations: Every client has different requirements and needs that if not fulfilled, will lead to client loss. So, managing the staff in order to satisfy every client’s requirements gets frustrating.?
Dealing with Software Updates: Tax software has constantly been updated every year in order to maximize the efficiency of operations. Certain updates require thorough training.?
Dealing with Talent Acquisition: Tax Preparers are professionals with optimum expertise. So, given the competition in this industry, it’s always a challenge to retain them.?
Tips to cope with the high volume of tax returns
Here are a few tips which will help you cope with the high volume of tax returns coming your way.?
Plan and Strategize?
The first step to successfully completing any given task is to plan and strategize it.?The battle is either won or lost first on the mind.?So, CPAs need to invest time in understanding the scope of work. They need to know the total number of tax returns that they are supposed to file. They need to know the differences in the business models and operations that their clients have.??
This also includes knowing the exact number of tax preparers they have so that they are able to allocate tasks and clients accordingly. It’s best to organize the tasks in order of their respective deadlines and how complex they are.
Here’s a basic checklist that CPA firms should keep in mind before you start filling them.?
Stack up your Arsenal?
It’s very common to see CPAs reach out to clients at the eleventh hour asking for crucial documents that were not submitted before. We learn from our mistakes. So, the best way to avoid such last-second mishaps is to make a list of all the deliverables that you will need from the client beforehand. And then let them know about it.??
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That way you won’t have to worry about missing documents. This is a very important step that you can’t afford to miss before filing taxes. There are multiple ways you can secure all the needed documents from your clients.??
Also, don’t forget to keep proper track of the documents provided by the clients, by giving proper naming conventions which will help you remember the file locations always.???
Sharpen Your Axe?
As mentioned above, the IRS updates its rules every tax season, now the changes may differ on the severity of the impact it has on your operations. But regardless of that, you must make sure that your tax preparers are trained in advance. Your tax preparers can start understanding the updates before the tax season starts.
You can?hire Tax Professionals?or veterans who have an understanding of tax policies and rules in depth, to train and teach your staff. They will be able to give you a list of best practices as they have seen decades of tax season.??
If this is done right, then while preparing taxes your tax preparers will be ready to overcome hurdles caused by the changes and updates in the tax policies.??
Tax Software Training?
There are many Tax software that has been developed which serve different purposes in tax preparation. Here are a few of them:?
These software companies have a dedicated team of software developers who are bringing constant changes and updates to the functionalities to better equip the users. If these updates and changes are not practiced, then it can cost you time & money to sit and learn while you should be filing taxes.??
Certain software also gives you dummy companies that are meant for practice. The data on such dummies are designed for you to get hands-on practice on all different forms and functionalities.?
Why CapActix??
CapActix is a leading offshore staffing company, we have partnered with 150+ clients and have helped them sail through difficult tax seasons. We have come across clients with different business models, which have equipped our accountants with technical expertise that enables them to manage our clients’ tax preparation needs.??
If you have not made up your mind yet, don’t worry.?You can opt-in for a Free 15 Hour Trial.?Post that if you are satisfied with our tax preparers, you can choose if you want to go for an outsourcing model or hiring model.??
Our outsourcing model has a fixed rate, whereas our hiring model has 3 different modes.?Full-Time, Part-Time, and Flexible Hours.??
If you want more information, fix a call with our Business Head and get all your questions answered by scheduling a meeting.?Click here to schedule meeting