It can be challenging for an accountant to keep up with all the shifting components of client service. However, taking some time out to stop and reflect on business can be an investment that ultimately has a positive impact on your life at work. Here are five top tips for running a more effective tax practice.

1) Set the right kinds of objectives

So, what do we mean by the “right kinds” of objectives? Those that will ultimately advance your company. It is these financial objectives that you need to concentrate on every year. You will merely spend your time treading water if you don’t have any concept of what you want to make, pay your employees, and take home each year.

Establish your topline (revenue) goals and how many clients you want to serve. This will help you to identify your average revenue per client and subsequently recognizeif a prospect is not a good fit for your needs.

How much will you spend on hiring staff, advertising, and office supplies? Create a budget to ensure consistency throughout the year.

Be tenacious in pursuing your take-home objective or profit. You must take action if your profit targets are not being met throughout the year.

Define solid plans and communicate those plans with your team so that everyone is clear on what you are aiming for and the role they can play in helping you achieve it.

2) Streamline your procedures

When was the last time you actually took some time to reflect on your procedures? If not recently, your ingrained processes might be keeping you from moving forward. Here are a few instances:

  • What is the process for selling, onboarding, first-year work, and other information when a potential new client contacts you?
  • Do you and your staff have a protocol when a client enters the office?
  • Is the procedure for drafting a tax return the same for every client?

Every year, you must review your processes and workflows. Do not be afraid of change; in some cases, there may be a pressing need to alter your workflows. Always strive to improve them and standardize everything you can.

3) Protect yourself

Most accountants—if not all—strive to uphold the highest ethical standards. However, despite your best efforts to protect your clients, mistakes can still happen. It might well have been a mistake; perhaps you failed to submit certain documents on time. However, the impact it may have on your client could be significant and expose you to a claim.

If you purchase accountant professional indemnity insurance, you will be covered in the event that a third party makes a claim against you. It helps shield you from the associated legal fees in the event that you err, omit something, or give bad counsel.

4) Spend money on your staff

People who have started out on their own can find it difficult to commit funds to recruit others. When they do, they may mistakenly opt for the cheapest option to keep expenses to a minimum.

To be effective, you need to make hiring decisions based on a candidate’s skill set, excitement, and capacity to provide excellent client service. While this will certainly increase your payroll expenditures, it will also increase your earnings.

After hiring, you must make an investment. Always treat your staff well.Educate them, support them, and be firm. The more you teach and invest in your people, the better they become and the more successful and content you will be—just like a wonderful client.

5) Put planning first

Tax preparation is essential to helping you transition from selling your services as commodities to being a client profit centre.

Every client should receive formal tax planning services, and your company should foster a culture where planning is prioritized over compliance. Together, you can show clients how planning is far more important than compliance and tax preparation. Your staff will join you in this endeavour.

6) Go above and above for clients

Aim to make people smile.

The tax industry can be challenging. Clients don’t typically get thrilled about tax work, but you still need to find a way to help them find joy. You need to find a way to surpass their expectations in order to make them smile.

The Net Promoter Score is a simple approach to ask customers to rate how helpful you are, and it may be used to gauge client happiness. If your score is ever lower than an eight, you have issues. We perform this one to two times each year at our firm.

Consider your tax return presentation style, the information gathering process, what happens when a client phones, and your level of team and client availability. All of these influence the expectations of your clients and, ultimately, their level of satisfaction with your work and service.