January Is Too Late: How Tax Business Owners Should Prepare Before Filing Season

Every year, tax season arrives at the same time.

Yet every year, some tax professionals find themselves scrambling in January trying to get everything ready.

They're hiring staff.

Trying to train preparers.

Changing software.

Setting up CRMs.

Updating websites.

Creating marketing.

Writing procedures.

Figuring out Due Diligence.

And trying to serve clients at the same time.

That's too much.

January should be execution season—not preparation season.

The tax businesses that appear organized during filing season usually didn't become organized in January.

They started preparing months earlier.

October Is Preparation Season

Once October arrives, tax professionals have roughly three months before another filing season begins.

That time matters.

Instead of waiting until January, use October, November and December to evaluate the business you operated last filing season.

What worked?

What didn't?

Where were the bottlenecks?

What did clients complain about?

Where did your team struggle?

What constantly required your attention?

What did you promise yourself you would fix after tax season?

Now is the time to fix it.

Start With Your Client Process

Walk through your client experience from beginning to end.

What happens when someone first contacts your office?

How do they schedule?

How are they onboarded?

How do they submit documents?

What happens when documents are missing?

How are returns assigned?

Who reviews completed returns?

How are signatures collected?

How are payments handled?

How are clients notified when returns are accepted?

What happens after filing?

If these answers are different depending on which employee you ask, your process may need work.

Your clients should receive a consistent experience.

Train Your Team Before the Clients Arrive

Don't wait until you're busy to discover what your preparers don't know.

Determine who will be working with you this filing season.

Then identify what training they need.

Tax law.

Due Diligence.

Client interviewing.

Documentation.

Software.

Office procedures.

Security.

Customer service.

Escalation procedures.

Don't assume returning preparers remember everything from last year either.

Training should be intentional.

Your employees need to understand not only how to prepare a return, but also how you expect business to be conducted inside your office.

Review Your Due Diligence Procedures

Compliance should be part of your preparation.

Review your procedures involving EITC, CTC/ACTC, AOTC and Head of Household.

Pull files from the previous filing season.

Look at the notes.

Look at the questions that were asked.

Review your Form 8867 process.

Look at how inconsistent or incomplete client information was handled.

Then ask yourself:

If this return were questioned today, would our file demonstrate what we did?

If not, don't wait for an examination to improve the process.

Improve it now.

Test Your Technology Before Tax Season

Technology problems feel much bigger when clients are waiting.

Test your systems before filing season.

Review your:

CRM.

Client portal.

Scheduling system.

Phone system.

Tax software.

Payment processing.

Email and text communication.

Automations.

Website.

Make sure your team knows how to use them too.

Having technology and knowing how to operate it are two different things.

And remember:

Don't buy technology before defining the process it's supposed to support.

Start Marketing Before January

Tax professionals sometimes disappear after April and then suddenly return in January saying:

"We're accepting clients!"

Your marketing should begin before you need the client.

Stay visible.

Educate your audience.

Reconnect with previous clients.

Update your website.

Review your online presence.

Create your content.

Collect testimonials where appropriate.

Develop your referral strategy.

Let people see your expertise throughout the year.

By the time January arrives, potential clients should already know who you are.

Review Your Financial Plan

Preparation isn't only operational.

Look at your numbers.

What did last filing season actually cost?

What did you spend on payroll?

Software?

Marketing?

Technology?

Office expenses?

What services generated the most profit?

Where did you overspend?

What should your budget look like this filing season?

A revenue goal without an expense plan only tells part of the story.

Know what you're trying to keep, not only what you're trying to generate.

Give Yourself Time to Correct Problems

The biggest advantage of preparing early is not perfection.

It's time.

Time to test something and discover it doesn't work.

Time to train someone who needs additional help.

Time to replace a system.

Time to rewrite a procedure.

Time to change a workflow.

Time to make a mistake when 100 clients aren't waiting on you.

January doesn't give you much room for experimentation.

October does.

Pick Three Priorities

Don't overwhelm yourself by trying to rebuild your entire business at once.

Think about your last filing season.

What were the three biggest problems?

Maybe your client onboarding was disorganized.

Maybe your staff needed more training.

Maybe documentation was inconsistent.

Maybe clients had trouble submitting documents.

Maybe your marketing started too late.

Maybe you had too many unnecessary technology subscriptions.

Choose three.

Then spend October working on them.

Once those are stronger, move to the next priorities.

Small improvements made consistently over the next few months can completely change how your next filing season operates.

January Will Come Whether You're Ready or Not

Tax season isn't going to wait until your systems are finished.

Clients aren't going to wait until your team is fully trained.

The filing deadline isn't going to move because your office wasn't prepared.

So don't wait for the pressure of January to force you into action.

Use the months you have now.

Prepare. Train. Document. Test. Market. Review.

The goal isn't simply to survive another tax season.

It's to build a better tax business each year.

January is execution season.

Preparation starts now.

— Dr. Gwennetta WrightXpert Business Solution

For tax business education, training, and resources, visit Xpert Business Solution.

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