Wrapping Up Tax Season: Reflecting, Evaluating, and Planning for Next Year
Tax season is officially over, and while the busiest time of the year may have passed, the work of improving and refining your practice never truly stops. May is the perfect time for small CPA firm owners to step back, reflect on the season, and plan for a more efficient and successful tax season next year. A structured approach to debriefing with your team, evaluating what worked and what didn’t, and assessing client relationships can set the foundation for future growth and improvement.
Here’s how to wrap up tax season effectively and strategically.
1. Hold a Team Debrief
Your team is your greatest asset, and a thorough post-season debrief can provide invaluable insights. Use this opportunity to review the highs and lows of the tax season, celebrate accomplishments, and identify areas for improvement. An open, collaborative conversation will help you refine processes and foster a sense of inclusion among your staff.
Tips for an Effective Debrief:
- Create a Structured Agenda: Cover key topics such as workflow efficiency, client communication, and workload distribution.
- Encourage Honest Feedback: Create a safe environment where team members feel comfortable sharing their experiences and suggestions.
- Celebrate Successes: Recognize individual and team achievements to boost morale and show appreciation for their hard work.
Key Questions to Discuss:
- What processes worked well, and why?
- Where did we encounter bottlenecks or challenges?
- Were there specific tools, software, or methods that proved particularly helpful or frustrating?
2. Evaluate Workflow and Technology
Tax season provides a real-world test of your firm’s systems and tools. Use the post-season lull to assess how effectively your workflows and technology supported your team.
Areas to Evaluate:
- Workflow Efficiency: Were there steps in your process that caused delays or confusion? Could automation or reorganization improve efficiency?
- Software Performance: Did your tax preparation and client management software meet your needs? If not, consider researching alternatives or updates.
- Data Security: Ensure that your firm maintained robust cybersecurity practices throughout tax season and identify any potential vulnerabilities.
3. Assess Client Relationships
Not all clients are created equal, and some may require more effort than they’re worth. Tax season is an ideal time to evaluate your client roster and identify opportunities to improve client relationships—or, in some cases, let go of clients who are a poor fit for your firm.
Steps for Client Evaluation:
- Analyze Client Profitability: Review how much time and effort you spent on each client relative to the revenue they generate.
- Consider Communication Challenges: Were there clients who consistently failed to provide documentation on time or required excessive follow-up?
- Identify Ideal Clients: Reflect on the clients who were easy to work with, paid on time, and fit well within your firm’s expertise.
Next Steps:
- Communicate with high-value clients to thank them for their business and explore additional services you could offer them.
- For challenging clients, decide whether to implement stricter engagement terms, raise fees, or part ways entirely.
4. Document Lessons Learned
As you identify what worked well and what didn’t, document these findings to create a roadmap for next year. A clear record of lessons learned will help you and your team avoid repeating mistakes and build on your successes.
Documentation Suggestions:
- Process Improvements: Outline changes you plan to implement, such as adjusting deadlines for client document submission or streamlining internal workflows.
- Client Policies: Update engagement letters or client onboarding materials to reflect any new policies or expectations.
- Technology Updates: Keep a record of any software or tools you plan to evaluate, upgrade, or replace.
5. Set Goals for the Next Tax Season
The insights you gain from this year’s debrief can help you set clear, actionable goals for next year. Focus on areas where you can improve efficiency, enhance client service, and grow your firm.
Examples of Goals:
- Reduce the percentage of returns filed on extension by improving client document submission processes.
- Increase profitability by attracting higher-value clients and letting go of unprofitable ones.
- Enhance team productivity by implementing better workflow management tools.
6. Take Time to Recharge
After the stress and intensity of tax season, it’s crucial to give yourself and your team time to rest and recharge. A well-rested team is a more productive and engaged team, so encourage everyone to take a well-deserved break before diving back into the next phase of work.
Ways to Recharge:
- Schedule Downtime: Block off time for vacations or lighter workloads in May and June.
- Celebrate Together: Host a post-tax season party or outing to thank your team for their hard work.
- Prioritize Self-Care: Encourage healthy habits like exercise, relaxation, and disconnecting from work during time off.
Final Thoughts
Wrapping up tax season isn’t just about closing out the books—it’s about learning, improving, and planning for the future. By debriefing with your team, evaluating clients and workflows, and setting clear goals, you can turn the challenges of this tax season into opportunities for growth. And don’t forget to celebrate your successes and give yourself and your team the time to rest—you’ve earned it!
Here’s to a successful tax season behind us and an even better one ahead.