Last push to get your house in order before tax season…

During the course of the year we all come across the occasional neat idea or two that we intend to implement, ‘when we get around to it’.

The trouble is, we rarely do actually get around to it, and before we realize it, tax season is looming ominously around the corner yet again.

Some of the ideas we intend to do something about, however might well make our lives that little bit easier during tax season, and so now is the time to take stock and make sure that we actually do get around to reviewing these ideas and doing something about them.

Staffing levels…

If you were thinking of adding to your bench strength before tax season, and growing your team, you might just get in under the wire if you start the recruiting process today – any later and you’re not giving yourself, or any recruiter you work with, sufficient time to locate, speak with, interview and interview before year’s end.

Should you find someone willing to move jobs during busy season unless there is a very good reason, I would stay well away from them. If they would leave their existing firm during tax season to join yours, then maybe they would do the same to you later on, at a time when you could least afford to be one person down in number.

Tax Software…

If you want to upgrade or even switch tax software, then here too is your last chance before next tax season.

Nobody really wants to start using a brand new program in the midst of the craziness that is tax season we all have come to know and love.

Time and Billing, Financial Statement Preparation, and any other Software…

Again, any major change to the operation of the practice should take place, ideally, by mid-January at the latest, so if you’re switching from Caseware to CCH’s Engagement, for example, then I would be picking up the phone to your friendly salesperson now!

The Five Minute Financial Makeover…

Here’s something that most practitioners can see the value in, but frequently get scared of making the commitment to implement, but it’s something your clients will love you for doing, if only you can muster up the courage…

When meeting any client where a set of financial statements is prepared by the firm, and you’re getting together with them to discuss the results, try to make five minutes extra for each client this year.

Then, at the end of the review meeting and you have all the queries cleared and are ready to finalize the financial statements, ask them how things are going for the present year.

Ask the client about any significant changes to their business and the financial impact of these, then, ask how sales are going and what they’re likely to work out to for the whole year.

Then, you can put a projected thumbnail financial statement together for the present year and say to the client; ‘All things being equal, this is what you’re likely to make in the present year based on what you’ve told me.’ And you can add ‘How would you like to examine ways in which we can help increase the profits for the present year?’

Now you can talk about cash flow planning and address any issues you might have noticed from the last year, such as period in the year where cheques are returned ‘NSF’.

All of a sudden you’re now talking to the client about matters that are very near and dear to their heart – profit improvement and cash flow management, and believe me, you’ve got their interest.

At this point it isn’t too much of a stretch to see some of them wanting to engage your firm to prepare a business plan, cash flow projections and so on.

What is your client doing after work…?

Another series of simple questions that we often don’t get or make time for are:

• How do you plan to exit this business?
• When would you like to retire?
• What pension provisions have you made so far?

The answers you get to these simple quick-fire questions should get them thinking about their exit strategy, and ultimate retirement, and again this in an area where we can add value.

Finally, What if they don’t make it?

While we’re getting the client thinking, how about asking them how they have provided for their families if they get hit by the proverbial bus tonight on the way home?

No client likes to think of their premature death, but it is a question we should ask, and make sure that they have a sensible answer. No doubt you will have some clients who do not even have a will.

These are clients who you should be frog-marching down the hallway to your Lawyer buddy, to get them set up with an up to date will at the very least, and maybe there is some decent tax planning work for you as a result of the client talking action on these issues.

Just a few ideas to throw into the mix and consider getting involved to a deeper level than ever before with some of your clients.

© MFA Group Inc, 2007