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 things that can hurt you as a tax professional when you LET clients procrastinate:
- Missed Deadlines: Your reputation takes a nosedive when clients drag their feet, leading to missed filing deadlines and penalties. Who needs credibility anyway?
- Increased Stress: Enjoy the thrill of last-minute chaos? Procrastinating clients ensure you’re constantly stressed, juggling multiple tasks with no time to breathe.
- Overtime Hours: Forget about work-life balance. Late clients mean you’re burning the midnight oil, sacrificing personal time for their lack of planning.
- Financial Losses: Late filings can lead to penalties and interest for clients, but don’t worry, you’ll get the blame for their financial mishaps.
- Reputation Damage: Word spreads fast. One disgruntled client can tarnish your reputation, all because you didn’t crack the whip on their procrastination.
- Lower Quality Work: Rushed work is rarely your best work. But hey, who cares about quality when you’re just trying to keep your head above water?
- Client Dependence: By allowing procrastination, you’re enabling clients to rely on you to fix their messes, turning you into their personal savior.
- Burnout Risk: Constantly dealing with last-minute scrambles? Enjoy the fast track to professional burnout and exhaustion.
- Opportunity Cost: By dealing with these clients, you give up the opportunity to work with another client who will pay more and be timely and appreciative of your work.
- Personal Frustration: The constant cycle of procrastination and panic can leave you feeling frustrated and unappreciated. But hey, you’re just a tax professional, right?
I hope you take this list to heart! I also hope that this motivates you to make changes.
So, what do you do about this?
- Look at your list of clients who have brought you their tax information in the last 60-90 days. It is time to serve them the Wake-up Call.
- Institute a new rush fee of $250-1,000 (or more) if the information is received after a certain date in the summer. My deadline was July 1st.
- Have a phone call explaining that this cannot happen anymore or you will have to ask them to go elsewhere.
- Follow-up the phone call with a letter and even an email. Consider sending it via certified mail for extra emphasis.
Remember, this is YOUR tax practice. You control everything about it, not your clients. If you pull up your big boy (or girl) pants and take control of your practice, this won’t happen.
When I finally did this in my practice, I had the best tax season (and 2nd tax season) of my career.
Oh, and when those clients that said they would adhere to the new rules and they don’t, send them packing with a Dear John letter (aka disengagement letter). I have a copy of one in the Tax Resolution Academy® for our members to use.
I hope this helps.
If you have any questions, please reach out to us.
I would love to hear your thoughts, challenges, and successes in writing your very own book.
Have a GREAT day,
Cordially,
Dan
Dan Henn, CPA, CTR™
Managing Member
Tax Pro Academy, LLC
P.S. Want to learn more about the Tax Resolution Academy®, go to https://community.taxresolutionacademy.com.
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P.P.P.S. Looking to attend the most exciting and transformational marketing conference of the year. Check out the TPPME 2024
Listen to the IRS Whisperer Podcast for a better discussion on this topic.
Ep 9 S 2 Procrastination is the opposite of fun! Installment Agreement Tips and Tricks
