Is your Accounting Practice Ready For Change This Tax Season
As we dive into Mini Tax Season, it’s easy to think of reasons to avoid making changes in your accounting practice. “I don’t have time,” you might say. While not all second-chance filing clients are procrastinators, many certainly are. Are you letting them off the hook too easily? This brings me to a crucial question: Why do you continue to work with these clients? You might worry, “If I don’t file their taxes, someone else will, and I’ll lose income!”
But is that the relationship you want?
There are valid reasons for clients filing late—changes to their legal structure, illness, or losing their bookkeeper/accountant, among others. However, it’s the accountant's responsibility to guide clients towards being proactive. Let’s categorize this: Proactive clients are “A” clients, while reactive clients are “C” clients. Here’s a thought: Which type takes up more of your time yet still complains about your invoices?
The Big Bonus of Tax Season
Beyond increased revenue, tax season offers a unique perspective into your clients’ businesses. Are you recognizing opportunities to help them transition from “C” clients to “A” clients? Isn’t this the work you aspire to do beyond just tax preparation? You might be wondering, “Paul, doesn’t this mean my firm’s revenue will stabilize throughout the year? When will I take my summer break?” But remember, one of the main reasons you started your accounting business was to choose your clients.
Are you one of those practice owners who puts in 70-hour weeks in February and March, all while wearing a smile?
The Path to a Balanced Practice
The options for shaping your accounting business to work for you are countless. It’s time to move past the fear of losing revenue by eliminating time-consuming, low- paying clients. Focus on the clients who truly appreciate your expertise—that’s where the real value lies. Master skills in delegation, time management, client selection, and even outsourcing low-level tax work. With these adjustments, it’s entirely possible to return to a 40-hour work week, even during tax season, without sacrificing revenue.
Take the First Step Towards Change
If you want your life back during tax season, it requires just one decisive step: the choice to take action. It’s low risk, with the potential for significant rewards.
I’m Paul Roy, founder of Profitable Practice Pro, and my mission is to assist Accountant and CPA practice owners in becoming great leaders while building their businesses through three key areas: People, Processes, and Profits. Ready to transform your accounting practice? Book a 20-minute call with me today to learn more! Schedule Your Call Here.