Eliminate Wasted Time with Tax Workflows

Tax season can be a whirlwind. But what if you could manage the chaos with precision and a sense of control?  

That’s where tax and accounting workflows come to the rescue. Think of them as detailed blueprints designed to streamline even your most complex tasks, helping you and your team get things done smoothly, on time, and with fewer headaches. 

Let’s set the stage: when we mention “accounting workflows,” we mean the structure behind your everyday accounting tasks, while “tax workflows” zero in on your tax-related duties. Workflows are crucial for fighting against wasted time, and they go far beyond simple task management. They provide structure, automation, and real-time collaboration—and they are non-negotiable for high-performing firms. 

The benefits of creating tax and accounting workflows

You already know the value of having an efficient system. But why invest the time to build comprehensive workflows for your team? Because the benefits are undeniable. 

Increased efficiency: A detailed workflow means less guessing and fewer inefficiencies. For example, instead of toggling between multiple software programs, integrate everything into one cohesive system to simplify data entry and reduce human error. The time you save can be reallocated to advisory services, which clients are willing to pay a premium for.   

Enhanced accuracy: Standardizing your approach cuts down on costly mistakes. Using pre-populated templates for common tax forms, or automated data imports from financial software ensures accuracy. You’re not just reducing errors—you’re protecting your reputation and minimizing liability risks. 

Time savings: A refined workflow eliminates endless back-and-forth communication. Establish a document request timeline at the start of the engagement, so clients know precisely when and how to submit everything. This proactive approach can shave days off your workload, especially when managing high-stakes returns. 

Better client experience: Tax clients expect updates, especially when the stakes are high. Automated notifications for milestones, such as when their return is ready for review, provide peace of mind. Real-time tracking of deliverables also helps your team stay accountable and responsive. 

Improved compliance: With changing regulations and heightened scrutiny, consistent workflows are your compliance safety net. Schedule regular checkpoints to review rule changes and run automated checks to ensure all filings meet the latest standards. 

Reduced stress: Having clear, actionable steps in place makes even the most overwhelming tax season manageable. Detailed workflows give your team confidence, reducing burnout and fostering a more sustainable work environment. 

Enhanced scalability: If your client base is growing, your workflows must keep up. Modular, scalable workflows mean you can easily add team members or adjust processes without sacrificing quality. For firms on a growth trajectory, this adaptability is crucial. 

Better training: Onboarding new staff during tax season can feel like trial by fire. With thorough, step-by-step workflows, your new hires can hit the ground running. Seasoned accountants can also use these systems to coach junior staff, ensuring knowledge is passed on efficiently. 

How to Achieve Effective Tax and Accounting Workflows

Mastering workflows is about getting the details right. Here’s how to take your systems from good to exceptional: 

1. Maintain Proper Documentation

Every successful workflow begins with meticulous documentation. Start with a tailored checklist for each client. Make it as specific as possible: instead of “income statements,” request “Q4 income statements and accompanying expense breakdowns for each department.” Clear requests reduce back-and-forth and expedite the data collection phase. 

Use your workflow management software to categorize documents in a way that makes sense for your firm’s unique needs. Consider organizing by year, document type, or even by tax strategy, especially if you work with clients who require custom solutions like multistate tax filings or international compliance. 

Analyze and review: Once your documents are organized, scrutinize the data. Automate calculations where possible but don’t skip the final review. Use diagnostic tools to spot inconsistencies, such as sudden expense spikes that could raise audit flags. 

File and submit: When you’re satisfied with your review, submit returns using e-filing for speed and reliability. Always double-check that all forms are sent to the correct tax jurisdictions, especially if you manage clients with complex, multistate or international obligations. 

Monitor and refresh: Submission isn’t the end. Track the status of each return, setting alerts for any feedback from tax authorities. Consider implementing post-mortem reviews to identify what worked well and what needs improvement for next year. 

2. Use a Client Portal

An efficient client portal is a game-changer. It’s more than a convenience; it’s a strategic tool. 

Enable clients to view the status of their submissions, respond to information requests, and upload documents securely. Implement a traffic light system: green for documents received, yellow for pending, and red for overdue. This visual clarity helps everyone stay on the same page. 

3. Crunch The Numbers

This is where your expertise shines. Perform detailed calculations, ensuring all tax liabilities or returns are accurately computed. Leverage software that cross-checks data points and flags inconsistencies, then manually review high-risk areas. For example, if a client’s deductions have significantly increased year-over-year, investigate to ensure compliance and accuracy. 

4. Submit and Verify

Submitting isn’t just about getting it done; it’s about getting it done right. Use submission software that provides real-time feedback on filing status. Implement a verification step where one team member double-checks the submission details. This two-tier review can prevent small errors from turning into major headaches. 

5. Track and Stay Updated

Tax law doesn’t stand still, and neither should your firm. Set up alerts for regulatory changes and have a quarterly review system in place to update your workflows accordingly. Keep a detailed log of all submissions and payments, making it easier to handle audits or client questions down the line. 

6. Streamline Payment Processes

Late payments don’t just affect your cash flow; they slow down your entire operation. Integrated payment systems automate invoicing and collections, syncing seamlessly with your financial software. Send automated payment reminders and require deposits for new clients before work begins. This keeps your practice financially healthy and ensures you get paid faster.