When your tax practice operates at maximum efficiency, you are leveraging your strategic assets to produce maximum profits.
Most of us are in this business for the sake of creating profits. Otherwise, what would be the point of driving ourselves crazy with tax code and clients, right?
In my experience, when you are operating at maximum efficiency, you are able to enter an interesting world: Choice. I have long stated that your business should exist at your whim, not the other way around. Efficiency allows you to reach a state of being able to control certain variables — hold them steady — while allowing others to change.
For example, if you want to hold your weekly workload steady to around 10 hours per week (as I’ve done for the past two years, more or less), then you have to operate at peak efficiency in order to keep profits up.
Similarly, you can change gears at will. I am in the process of exchanging my fixed workweek for a geometric increase in profitability. Since I’ll be working with efficiency in mind throughout the entire process of growth over the next few months, my profits will multiply beyond the 4x increase in my tax workweek to 40 hours.
So how do you achieve this level of efficiency. It’s pretty easy, really: Systems. You might prefer to use a different word: Protocols, processes, procedures. Whatever the nomenclature, the bottom line result is the same: A collection of written steps for accomplishing well-defined tasks.
Right now, I am in the process of finishing up a joint project with Chauncey Hutter, Jr. to create such a set of tools for running a seasonal tax preparation office. I welcome your feedback on this process, so if you happen to have two or three minutes to complete this brief survey regarding what you would value most in such a set of systems, please complete the survey here:
Also for you today is a follow up regarding last week’s article. In order to focus on the elements of your business that are actually worth maximizing efficiency in, you have to spend some time working ON your business, like I did at Burning Man. I promised a webinar on the topic, and that will be happening tomorrow at 11am Pacific (2pm Eastern). This webinar, 7 Big “Ahas” For Working ON Your Tax Practice, will cover the areas of your tax business that I believe are important to work on regularly. To register for this webinar (which will include a Q&A period), please go here:
I appreciate your feedback on the tax preparation office systems, and look forward to seeing you on tomorrow’s webinar!