In a recent study of more than 150 accounting and CPA firms, the Post-Tax Season Firm Survey showed that one of the main stressors affecting those firms’ ability to maintain team morale and high standards, was workload compression. Characterized by the American Institute of Certified Public Accountants as a condition of excessive job demands brought about by the 1986 Tax Reform Act (TRA), workload compression can seriously hamper the efforts and success of small to medium sized accounting firms, and result in severe stress. Often leading to burnout, these high levels of stress mean that the accountants and CPA’s cannot cope with their workload, and go on to make errors and miss deadlines, ultimately threatening their relationships with valuable clients, who will simply look elsewhere for a more reliable firm.
If you’re running a small or midsize CPA or accountancy practice and are struggling with the demands of an increased workload, or lack of qualified employees, the following 3 tips may help you to get a better handle of your business:
Have your clients submit their documents in good time:
Take control of your own deadlines by assigning them to your clients, too. Keep in regular contact with your clients to help them submit their documents to you in time, and perhaps think about creating an online portal where they can simply upload the necessary documents, saving them the effort of having to drop them off in person at your office.
Stay up to date with changes to tax laws:
With recent reforms to the tax system, tax planning has become more complicated, and keeping up to date with the new rules and regulations has never been more important. Ensuring that your software is updated regularly can help with this, or you can consider outsourcing some of your workload to ensure that you always remain tax law compliant, and never miss a deadline.
Outsource your accounting work:
Even if you only have a small or mid-sized accountancy or CPA firm, the benefits of outsourcing some of your workload can be instrumental in determining whether you become a successful business, or one that consistently under performs and cannot maintain a loyal client base. With so many economical options available nowadays, the benefits of outsourcing often far outweigh the cost, and with some companies using cost effective resources in countries such as India, outgoings have been reduced even further. Labor costs are far lower in India (even with employees been paid fairly according to their countries government guidelines) and with an ever expanding number of tech savvy citizens looking for companies to engage their skillsets and breadth of knowledge, there is a seemingly endless supply of workers who can offer their services at a fraction of the cost. Not only that, but with the difference in time zones, much of the work can be completed while busy accountants and CPA’s are fast asleep!
So, if you’re a busy CPA with an intense workload that you’re struggling to keep up with, why not consider outsourcing some of your needs so that you’ll never have to worry about missing deadlines again.