Category: Client Management

Eliminate Stress and Boost Productivity for Tax Professionals – 10 Secret Steps to a better tax season

As a licensed tax professional, you’re no stranger to the overwhelming demands of tax season. Long hours, complex client cases, and endless administrative tasks can quickly lead to burnout and decreased productivity. But what if there was a way to transform your practice, reduce stress, and boost your efficiency? The good news is, there is – and it all starts with setting the right boundaries.

We are going to explore 10 essential steps that can help you create a more balanced, fulfilling, and successful tax practice. By implementing these strategies, you’ll be well on your way to a better tax season and a more sustainable career.

  1. Embrace Specialization

One of the most powerful ways to reduce stress and increase productivity is to focus on your areas of expertise. Don’t be afraid to say, “No, I will not accept that new client due to their complexities outside my area of expertise.” By specializing, you’ll ensure high-quality service, reduce the risk of errors, and build a reputation as an expert in specific areas. This approach can lead to higher-value clients and increased revenue. Not to mention that specialization will allow you to increase your fees and work with less people, allowing you to work with the best quality clients.

  1. Cultivate a Quality Client Base

It’s time to bid farewell to difficult clients who drain your energy and resources. Adopt the mindset of, “No, I will not let pain in the rear clients into my tax practice for any reason.” By being selective with your client base, you’ll protect your mental health, maintain a positive work environment, and allocate more time to ideal clients who truly value your services.

  1. Implement Strategic Communication Practices

Take control of your time by setting clear communication boundaries. Use phrases like, “No, I will not take your call immediately when you call. I am currently unavailable. I will respond faster if you email me your question.” This approach reduces interruptions, improves focus, and allows you to provide more thoughtful and accurate responses. Ever had that day where you worked 8+ hours and said “what the heck did I do today?”. While I cannot guarantee those days will go away, they will be reduced if you adhere to this productivity strategy.

  1. Delegate Phone Duties

Free up your time for high-value tasks by delegating phone duties. Consider hiring someone to handle incoming calls, allowing you to focus on your core expertise while ensuring clients receive … Continue reading

Cost of Client Procrastination on your Tax Practice!

We are now in what I affectionately call the Second Tax Season. While it is not usually as base as the first one of the year, it can get pretty hairy. If you are like I used to be, you would pick up your hours as the extension deadlines approach. In some cases, working 60-70 hours a week (or possibly more). 

So, the question becomes, why do we do this? The simple answer is we love our clients. We love them so much, we take their abuse. Yes, I said abuse. Seems like a strong word, but follow this with me for a few minutes.

You work really hard from January to mid-April. You take a little bit of rest, but then it is back to work on the extended returns for the information you had most of their info. Then there is that final 10-20% of returns you have in your office to do, but you can’t. Why not? Because you are missing 50-80% of the information you need to prepare the return.

So, what do you do? You start sending emails to these clients to request that missing info. As time moves on, and their excuses keep piling in on why they cannot produce that info, you start having your staff calling them to get the info into your office.

Days turn into weeks, weeks into months, and now the deadline is upon us. This is when you send the final email about two weeks before the final deadline. You tell them that if it is not filed on time they will incur late filing penalties which can be very expensive.

Well, that lit the fire under their butts and they finally get the information to you with 10 days (or less) for you to get the return done. What do you do?

Well, if you are like most tax professionals, you just grin and bear it. You hunker down and get the return done. You get it done on time, bill them the same amount you did last year and we all move on.

BUT WHY?!! Why do we do that?

We take this abuse! You don’t have to, nor should you take this abuse from anyone! It doesn’t matter if they have been a client 15 years, or their your mother or brother. There is no excuse for them making their emergency your emergency.

Here is a list of 10 … Continue reading

Client Communication and how to avoid the “You didn’t tell me” plus How to Get Friggin’ Paid!

Today, we embark on a mission—a mission to fortify your practice, protect your interests, and ensure you receive the compensation you deserve. As General Patton once inspired his troops in WWII, I am here to galvanize you, the valiant tax professionals, to stand firm in the face of challenges and emerge victorious in your IRS representation cases.

The Battle Plan: Document Everything

In the trenches of tax representation, one of the most formidable adversaries we face is the dreaded “But you didn’t tell me that” client. These clients, whether through selective memory or genuine misunderstanding, can pose a significant threat to your practice. The solution? Documentation.

  • Reduce to Writing: After every significant discussion, reduce it to writing. Send an email summarizing the main points, decisions, and actions required. This not only serves as a reminder to the client but also as a protective shield for you.
  • Certified Mail: For critical communications, send letters via certified mail. Even if the client doesn’t claim the certified mail, the regular mail will reach them. Keep the returned certified mail unopened as evidence.
  • Client Acknowledgment: Always request a reply from the client acknowledging receipt of your communication. This can be an email, a signed letter, or a duplicate copy of the letter they sign and date.

Strategic Communication: Clarity and Precision

To prevent misunderstandings, clarity and precision in communication are paramount. When advising clients on actions like making payments to the IRS while you wait for returns to be prepared, a Form 433-A to be compiled, or Appeals to respond, be explicit. Explain the consequences of changes in their financial situation, such as winning the lottery or receiving a raise, and how these could affect their resolution status such as dropping out of Currently Not Collectible or adding a new liability can kill their Installment Agreement or Offer-in-Compromise.

The Art of Getting Paid: Ensuring Fair Compensation

In this battle, your time and expertise are your greatest assets. Ensure you are compensated fairly for your services.

  • Engagement Letters and Retainers: Always use engagement letters and require retainers up front before starting any work. This applies to any type of professional work you do for a client. For tax return preparation, a retainer of at least 50% is advisable. For IRS representation cases, secure a retainer of $3,000 to $5,000 for exams.
  • Value-Based Flat Fees: For collections cases, consider a value-based flat fee structure. Collect 100%
… Continue reading