The 2021 tax season has ended in a unique fashion which featured a series of unclear situations. As the dust settles, the 2022 tax season is up for discussion. A backlog of activities and strategic planning is necessary to face the second part of the year in preparation for the 2022 tax season.
IRS backlogs of 2019 filings, guidance on Covid relief, and expected answers from the IRS are parts of the issues businesses and accountants are to battle in this new season. So, how can you prepare? Let's see a few ways.
Prepare Your Documents
The effect of the pandemic isn't entirely gone and that's why the government has extended filing limits. The extension is aimed at allowing CPAs and accounting firms to train and competently handle modern accounting software for accuracy and quality work.
As an accounting firm, be proactive and set dates for the submission of tax information and documents from clients. If you run a business, do well to adhere to submission dates to enable timely filing. Accounting firms can take it a step further by creating an online platform for clients to submit. An online channel strikes out the need for physical contacts and associated constraints.
Decide How You'll File
As a business owner, you have the option to prepare and file your taxes yourself or delegate to a CPA. As the new tax season is shaping up you must decide whether to use a professional or not. Well, for big firms the only reasonable option will be to use the service of a professional.
However, small businesses can choose to be flexible but the current situation has riddled the tax filing process with lots of amendments and implementation. If you don't have access to new information, you may risk inaccurate filing or fail to take part in some benefits.
Evaluate and Prepare Your Workforce
Every accounting firm must employ adequate and competent staff to cater to the work influx. Examine the capacity your company needs to deal efficiently with workflow at the peak of the tax season. Draw out a plan of estimated tax returns to be handled and prepare to attend to all effectively. Consider outsourcing to meet up quickly if training your workforce isn't feasible.
Get Up to Date on Tax Legislations
As the months go by in the new tax season the IRS would keep updating tax laws especially as it seeks to implement the Tax Cuts and Jobs Act. Also, be up to speed with updated taxing software or simply outsource as you get familiar with updated information as regards tax laws and write-offs.
The importance of outsourcing in the 2022 tax season can't be overstated. As discussed earlier, envisage the inbound workload and compare it with your existing workforce. When you do this, you'd be able to see where outsourcing would prove beneficial.
In the process of outsourcing, doing due diligence is essential to avoid delays. The goal of outsourcing is to prevent delays and use the expertise of a hired service provider to obtain accuracy. Hence, don't outsource with your eyes closed. Since you understand the departments where work needs to be done, search for experts with proven experience in that field. The tax filing process will be free of errors even giving you more time to focus on other aspects of your work.
Assess Your Firm
For some firms, the start of a new tax season is an avenue to assess the last tax season to see what went well and the challenges. With this information, an accounting firm can choose to make the most of the present situation by adding advisory services to the list of services offered. Advisory service could be in different forms. Simply pick a niche or industry where you as a CPA / firm have experience.
You can make the best use of remote working channels to get your advisory services up and running. Advisory service will engender and foster trust and respect especially if you provide tax filing services for the same client.
To effectively achieve this, keep up with events relating to the field you've chosen. Look for trends and opportunities then provide insight into such to inform and educate your client.
The increased profit comes as a benefit and more opportunity to market your services. Additionally, you'll have an edge when you combine advisory and regular tax filing services.