5 Important Things to Do After Tax Season for Accountants

Things to Do After Tax Season for Accountants

Are you wondering what do tax preparers do in the off-season? When is tax season for accountants?

Well, tax season in Mississauga typically spans from February to April, culminating with the April 30th filing deadline. As the hard work of crunching numbers and assisting treasurers winds down, it’s tempting to take a well-deserved break. 

Reflect on the challenges you faced during accountant tax season and the successes you achieved during tax season. Take this moment to consider how processes can be made more efficient for the next round of tax preparations. 

Before fully transitioning away from the demanding tax season, here are five immediate steps to help you understand what do tax preparers do in the off-season to prepare for the upcoming year:

1. Take a Break to Recover

In Canada, tax season for accountants typically runs from March to April, with the filing deadline on April 30th. Many tax preparers and accountant tax season, just like in the United States, feel the weight of this busy period. It’s crucial to take more than just a day off after the deadline. 

Extended downtime is essential for mental well-being and long-term resilience. Research cited by the Society of Human Resources indicates that vacation significantly benefits employees’ focus and alleviates burnout. Encourage yourself and your team members to take real time off during the spring or summer to recharge:

The consensus among a majority of employers is that taking vacations has a positive impact on their employees. A significant 78% of bosses acknowledge that vacations enhance an employee’s focus, while an even higher 81% believe that vacations help alleviate burnout.

2. Hold an After-Action Review

After the tax season’s end in Canada, conducting an after-action review (AAR) is a wise step. This review allows you and your team to reflect on what went well, what didn’t, why, and what could be done differently next time. 

This is an opportunity for both you and your team to engage in open and honest discussions regarding:

  • What aspects of your accountant tax season operations were successful?
  • What areas faced challenges or didn’t perform as expected?
  • Why do certain elements succeed or encounter difficulties?
  • What changes or improvements would you consider making in preparation for the next tax season?

While revisiting the recently concluded tax season for accountants might not be your top priority after crossing the finish line, it presents an ideal opportunity to pinpoint areas for improvement. Addressing these areas now sets the stage for a smoother and less hectic tax season next year.

3. Update Processes and Technology

Summer is an ideal time to focus on improving processes and incorporating new technologies identified during the after-action review. Technology can significantly enhance efficiency, but it’s essential to have the right processes to complement it. 

This proactive approach ensures that technology maximizes its benefits during the next tax season for accountants in Canada.

Here is a valuable tip to help you get ready for documentation in the upcoming tax season for accountants in Mississauga:

  • Collect Essential Tax Documents: Begin by gathering all the necessary tax documents, including T4 slips, T5 slips, and receipts for any deductible expenses. Organizing these documents upfront will simplify the tax filing process.

4. Work on Professional Development

Joining professional accounting or bookkeeping associations and seeking certification or consultancy opportunities can further your professional growth. Here are a few notable ones:

  • Chartered Professional Accountants of Canada (CPA Canada): CPA Canada serves as the national organization for chartered professional accountants (CPAs) across the country. CPAs are highly skilled professionals with expertise in various accounting services, including auditing, taxation, financial planning, and management consulting.
  • Certified Professional Bookkeepers of Canada (CPB Canada): CPB Canada holds the distinction of being the national certifying body for bookkeepers in Canada. Certified Professional Bookkeepers (CPBs) are well-trained and certified experts who specialize in providing bookkeeping services to small businesses and individuals.
  • Canadian Bookkeepers Association (CBA): The Canadian Bookkeepers Association is a nationwide association dedicated to supporting bookkeepers in Canada. Members of the CBA benefit from resources, networking opportunities, and advocacy services, making it a valuable choice for bookkeepers looking to grow their professional network.
  • Association of Tax & Accounting Professionals (ATAP): ATAP serves as a national association catering to tax and accounting professionals throughout Canada. Members of ATAP gain access to continuing education options, valuable resources, and support to enhance their expertise in the field.

5. Improve Your Client Experience

Many accountant tax season actively seek ways to gain a competitive edge, attract the right clientele, and retain their existing clients. One effective approach to achieving these goals is by prioritizing the client experience (CX).

Investing in CX isn’t just a “nice-to-have” feature; it holds significant value. 

According to a study conducted by PwC, companies that excel in delivering a superb client experience can command premiums of up to 16% on their products and services, in addition to fostering stronger client loyalty.

While the specifics of the client experience may vary among different firms, here are some strategies to consider:

  • Employ cloud-based tools and applications that simplify collaboration between clients and your team, streamlining various tasks and processes.
  • Regularly disseminate informative content on your blog and social media platforms, offering actionable advice and addressing client inquiries.
  • Implement secure technology solutions that enable clients to electronically sign engagement letters, e-filing authorizations, and other essential documents.

Bonus Tip: Seal the Deal with an Effective Marketing Plan

To assist firm leaders in marketing themselves as industry experts, here’s a basic checklist to guide your marketing strategy for the upcoming tax season:

  1. Set a Budget and Tracking System: Initiate your marketing plan by establishing a clear budget. Marketing expenses can accumulate swiftly, so designate a specific amount either annually or quarterly. 
  1. Define Metrics and Objectives: With a budget in place, pinpoint the precise measurements and targets for your marketing initiatives. Determine your firm’s marketing goals and how these objectives can be effectively tracked. 
  1. Craft Compelling Messaging: Identify distinct customer personas that your firm aims to serve. Compile a list of their common challenges and pain points. Once you’ve identified your target audience, develop impactful messaging, including slogans, mottos, taglines, and more. 
  1. Embrace Creativity: Remember that memorable marketing efforts often stand out due to their creativity. Don’t shy away from experimenting with innovative approaches. Consider engaging on social media platforms or revamping your logo to give it a modern touch.

Over to you

By taking these strategic measures on what do tax preparers do in the off season, you can set the stage for a more prosperous financial year and position your accounting firm for sustained growth. Don’t hesitate to reach out to us for guidance on cost reduction and effective streamlining of your accounting functions.

FAQs

What do accountants do during non-tax season?

During the non-tax season, accountant tax season engages in various activities aimed at maintaining the financial well-being of their clients and businesses. They often provide year-round accounting services, such as financial statement preparation, auditing, financial planning, and consulting. Accountants may also focus on professional development, staying updated with tax laws, and refining their firm’s internal processes. So, what do tax preparers do in the off season? They assist clients with a wide range of accounting needs beyond tax-related matters.

What are the busy seasons for tax accountants?

Tax accountants typically experience busy seasons centered around government tax filing deadlines. In Canada, the primary tax season for accountants starts in March and extends until the end of April, with the deadline for filing individual tax returns being April 30th. 

How stressful is tax season for accountants?

Tax season for accountants can be quite stressful for accountants due to several factors. The high volume of work, tight deadlines, and the need for meticulous accuracy contribute to the stress levels. Accountants face pressure to meet client expectations, ensure compliance with tax laws, and manage multiple clients simultaneously. 

Why are accountants so busy during tax season?

Accountant tax season experiences heightened workload during tax season primarily because of increased client demands for tax-related services. Clients require assistance with tasks such as income tax return preparation, tax planning, deductions, credits, and ensuring compliance with tax regulations. 

How many months do tax preparers work?

In Canada, tax preparers typically work intensively during the tax season, which typically runs from March to April. The tax filing deadline for individuals and most businesses is April 30th. This two-month period is when tax preparers are busiest, as they assist clients in preparing and filing their tax returns.