Seasonal fluctuations are a well-known part of running a professional tax firm. But just because busy season is over in April and extension season is still a few months away doesn’t mean firms should rest on their laurels all summer. Firms can take advantage of the less-busy summer months to plan for, evaluate and implement new software and workflows to help make the rest of the year more efficient.
Whether busy season was good or bad, there’s always room for improvement. It’s a good idea to start technology planning by evaluating how the firm has performed in the past and where it could improve. Here are 5 key areas to focus on.
Time spent on administrative tasks
Administrative tasks like client data collection and data entry take up an overwhelming amount of time for many firms. However, fast-growing firms have been streamlining these processes with automation. In a recent study, more than two-thirds of respondents said they were using technology to decrease time spent on administrative tasks and increase time spent on core business. Strategies include transforming client data collection with an interactive collaboration hub and using digital tools like computer vision and smart scanning to organize documents, flowing data directly into returns.
The tax preparation workflow
Many parts of a typical tax preparation workflow are manual and repetitive, but more than half of firms surveyed reported using technology to automate these types of tasks. Workflow automation is a growing area of focus, with centralized tracking of tasks and deadlines. Complex returns can be streamlined by automating K-1 data imports or dynamically linking trial balance data for business returns. The latest technology uses machine learning to identify grouping patterns and match customer-specific tax groupings for entries in imported trial balance sheets.
Staff development and collaboration
New technologies are helping staff work better and develop professionally into more effective reviewers and managers. More than 60% of firms surveyed reported that technology has helped them in the areas of staff engagement and morale. Some ideas to plan for in this area include self-service tools like dashboards and diagnostics that help staff catch errors earlier in the process and streamline communication between preparers and reviewers.
The client experience
With 68% of firms reporting that technology helps them offer more services per client, firms should think about what additional services clients are requesting, and how to remove friction between the client and the firm. Firms can grow client relationships beyond the annual tax preparation engagement by offering tax planning and advisory services. Predictive intelligence technologies help identify client service opportunities. Firms can also improve client satisfaction by providing a digital client experience, including e-signatures and e-payments.
Training and support
Nearly 80% of firms reported that technological advances have reduced the hours spent working on a return. However, in order to truly benefit from technology, staff members must be adequately trained and have access to comprehensive, easy-to-access help when they need it. Self-service tools like chatbots, knowledge base articles and videos can provide answers on-demand. Advanced chatbots use large language models to analyze the meaning behind natural language questions and provide relevant, accurate information based on trusted resources. And online support options like live chat and online support tickets help firms get the help they need when they need it.