Eliminate Wasted Time with Tax Workflows

How to Achieve Effective Tax and Accounting Workflows

Mastering your tax and accounting workflows is crucial. An efficient process is vital for both accuracy and time management. Here are several best practices to empower your accounting firm’s workflows: 

1. Maintain Proper Documentation 

Every tax and accounting workflow begins with a critical step: documentation. Thorough documentation ensures that you have all the necessary information to prepare your client’s taxes. 

Mastering documentation simplifies each subsequent step, making the entire process smoother and more efficient. Without comprehensive and accurate documentation from the very start, the entire process can become chaotic and error-prone. Think of this initial step as setting the foundation for a building; a strong foundation is essential for the stability and integrity of the entire structure.

Streamline your documentation process with these essential steps and tips: 

• Collect and Organize – Start by providing clients with a checklist of all the documents you require for tax preparation, such as income statements, expense receipts, and other relevant financial documents. Also, have a checklist on your end. As the client submits each document, mark off what you’ve received so that nothing is missed.

Within your workflow management software, organize client documents into folders. You may categorize folders by year, type of document, or tax category. This not only keeps things tidy but also facilitates quicker document retrieval. More importantly, you'll reduce mid-process hiccups and last-minute back-and-forths with your clients. This leads to a more efficient tax preparation process.

• Analyze and Review – Analyze the data, conduct necessary calculations, and draft the tax returns. Next, thoroughly check every tax document to ensure accuracy and completeness. This step ensures all financial information aligns with tax regulations and client information.
• File and Submit – Once confident in the accuracy of the returns, these need to be sent to the appropriate tax agencies. This step ensures timely submission in compliance with deadlines.
• Monitor and Refresh – After submission, keep track of the status of each return. Make sure that all pending payments are made on time and address any feedback or adjustments that may arise.

2. Use a Client Portal

Allow your clients to access a dedicated portal within your practice management software so they may view their document submission status, any pending requests, and updates. This keeps them in the loop and fosters responsibility on their end.

By fully leveraging your software’s client portal feature, gathering and organizing documents can become a systematic, hassle-free process. It not only enhances accuracy but also dramatically improves the experience for both the accountant and the client.

3. Crunch the Numbers

Once all data is in place, the next step is to crunch those numbers. Here, accuracy is paramount. This phase involves the detailed process of computing tax liabilities or returns based on the provided records. But it doesn’t stop at just calculations. A thorough review follows to ensure there are no errors or oversights.

4. Submit and Verify

After calculations and reviews come the formal part: Submitting the tax returns to the relevant authorities. Depending on where you are, this could mean sending it to a federal, state, or local tax agency. But submission isn’t just about sending off a bunch of papers or files. It also involves verifying that the authorities have received the documents and that they align with their requirements. Verification ensures that you’ve met your responsibilities. This is crucial in preventing penalties or additional scrutiny.

5. Track and Stay Updated

Filing your taxes is only part of the journey. In the world of taxation, the rules change regularly. Also, once submitted, a tax return may require further clarification or adjustments. You’ll need to keep an eye on the status of your submission so that any due payments are made on time and you promptly collect any feedback from tax authorities.

6. Streamline Payment Processes

Waiting to get paid can cause quite a delay. Cut down on wasted time by embracing integrated payment systems. Integrated payment technology automatically syncs payment data within your business software, enabling upfront payment requests and expediting invoicing and payment collection. Among the evident benefits of using integrated payments are reduced manual input errors, faster and more accurate transactions, and improved cash flow. This leads to better operational stability and enhanced customer satisfaction.