5 ways to prepare for last-minute tax clients

February 1, 2023 1:36 PM

Most accountants struggle with last-minute tax clients, the ones who overwhelm you with work, miss deadlines, or call unexpectedly. Luckily, if you take a proactive approach, you can reduce these inevitable hiccups that never seem to end.

Implementing the following recommendations will allow you to maintain greater control over last-minute clients and enjoy a little more sanity along the way.

Use cloud-based software to simplify things

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While any last-minute client can add to the stress already present during the busy season, you can make your life a little easier by taking advantage of cloud-based software.

The cloud simplifies things because it allows clients to upload their documents anytime, anywhere as long as they use an internet-connected device. I recommend providing each client with a checklist of items they need to submit and having them check off each one as they go.

These checklists save time because clients and your firm know which documents still need to be submitted at any given time. Clients know what's expected of them, which will make it easier and less stressful to bring them onboard at the last minute.

I also recommend using cloud-based software that allows teams to view the progress of tax returns in real time. Doing so will keep everyone on the same page as far as what needs to be prepared, reviewed, sent to the client, signed and filed.

The right cloud software solutions won't just be useful during the busy season, but year-round.

Set deadlines for new clients

Accounting firms expect a certain percentage of clients to show up at the last minute. One way to avoid feeling stressed and overwhelmed is to accept these latecomers, provided they are willing to meet your deadlines.

Make sure that last-minute clients know about deadlines for submitting their information before you take them on. Also, be clear about what will happen if they fail to meet deadlines. Let them know you will do your best to get everything out in time, but there are no guarantees, and an extension may be needed.

It also helps to emphasize the benefits of submitting information as early as possible. Communicate to clients about how providing information early enables your team to spend more time offering strategic advice rather than trying to rush through their work.

Be proactive about sending reminders

Proactive client management can save you and your team a lot of headaches when dealing with latecomers. That's why it's important to start sending out reminders early and often.

Let clients know what deadlines are coming up and which documents they need to send over. These reminders can help keep clients from dragging their feet until the 11th hour.

You don't even have to send out these reminders manually. Many cloud-based software programs can take care of this task for you, which will save your team valuable time when they're already stretched to their limits.

If you don't have software to send reminders out on your behalf, you can use email. Your email system should enable you to create these reminders and schedule them to send on a future day.

Buffer your schedule to prepare for the unexpected

You only have so much control when you deal with clients. You can send them reminders, reach out to them early, and then still have unexpected events that cause a shift in your workload.

I highly recommend that you incorporate "buffer time" into your schedule for your own sanity.

These buffer time blocks will allow you to:

Adequately prepare for the unexpected;
Meet the needs of forgetful clients; and
Possibly get more done if everything falls into place.

In addition to creating buffers in your weekly schedule, you will also need to set a final date for client acceptance.

Set a final date for client acceptance

Last-minute tax clients will inevitably come to your firm and try to secure your services. You can take on these clients when you have extra room. However, there will come a point when you and your team are already at maximum capacity and have to make a decision:

Work more hours to meet a new client's demands; or,
Stop taking on new clients and save your sanity.

Accepting new clients can help you reach revenue goals, of course, but you need to determine when "enough is enough." How long do you want to work extended hours, stay at the office late at night and miss important events in your social life? The same goes for your team.

Don't take on more clients if it's going to impact your team negatively. Your team is your firm's most valuable asset.

With that in mind, in the event you do take on new clients after the final date you set, consider charging them an additional fee to compensate for the increase in an already bloated schedule.

Taxes are something clients tend to either get done early or wait until the last minute to send to their accountant. If you are struggling due to the procrastination of these individuals or businesses, using the tips above can make the tax season move along more smoothly.

Setting boundaries, having deadlines and using the right cloud-based systems can mean the difference between feeling overworked and overwhelmed, or feeling content at the end of each workday and at the end of busy season.