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Are You Ready for Tax Season 2020? - 5 Steps to Prepare Your CPA Firm for Efficient Tax Time

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Are You Ready for Tax Season 2020? – 5 Steps to Prepare Your CPA Firm for Efficient Tax Time

If you are a small but very busy CPA or tax firm, then you need to put your team into the alert mode soon as tax season 2020 is approaching very fast. You might be wondering that there are still a few months available before the full blow of the tax rush, but if you want to ensure that your firm is ready to observe the blow, then you have to work on tax preparation services from today.

Tax preparation services for CPA firms and tax firms vary from maintaining books of their clients and filing returns before the due date under the legal compliance of the federal and state rules. Moreover, it is the responsibility of CPA firms to ensure that they won’t get any IRS penalty and damage the credit score of their clients due to their small mistake. It is a lot at stake for tax and CPA firms during tax season so they have to double even triple prepare themselves before the final season.

Okay, if you want to prepare your accounting and taxation firm for the stress and frustrating tax period, then you need to include the following tips in preparing your firm for the busy season.

Tips to get ready for Tax Season for CPAs

Tip #1. Be Prepared

If you are wondering what you have to start preparing from January month only to prepare tax reports, then you are wrong. You need to start preparing for your tax services from today to ensure that all your client’s expenditure and revenue accounts are prepared in advance. There are a few basic things that CPA firms should start preparing today –

  1. Bookkeeping and recording all the accounts of their clients with the help of digital accounting tools.
  2. Creating a depreciation account for the assets of their clients according to the standard depreciation rate.
  3. Bank reconciliation statements need to be up to date.
  4. Payroll management as per the employee recruitment law of the state.
  5. Keeping employee and contractor tax information readily available.
  6. Maintaining entire data on a cloud database for easy access.

Tip #2. Prepare Your Staff

One of the most important things that every accounting firm should consider before the rush of tax season is to prepare their staff for this crucial period. It is important for accounting firms to conduct training of their staff and make sure that they are efficient to handle the stress of the period. Moreover, they need to ensure that whether their current staff is capable of handling the workload of the tax season or not.

Tax preparation services for CPA firms and Tax firms aren’t efficient if they won’t have an effective team and to create a productive team, companies can try the following things –

  1. They can host a seminar to familiarise their staff with the latest tax trends and tools.
  2. Companies can hire part-time tax experts to release some of their current staff’s burden.
  3. If companies find that hiring new employees is getting out of budget for them, then they can hire remote staffing firms like CapActix and improve their efficiency.
  4. Provide basic training to employees on the latest accounting technologies like blockchain, cloud computing and much more.

Tip #3. Do Homework on the Latest Tax Reforms

If you want to create a perfect taxable amount for your client without any mistake, then you need to do proper homework on the latest tax reforms and ensure that every member of your team is aware of these reforms. You need to follow tax-related news and join different accounting forums online to make sure that you are fully aware of all the changes made in the current year tax slab.

Tip #4. Use Latest Taxation Software

With the help of the latest taxation software and technologies, CPA and tax firms will be able to improve the efficiency of their business and staff impeccably. When accounting firms are using the latest software and technology to create the accounts of their clients, then they will be able to improve the efficiency of their work and will be able to create error-free tax returns. The right tax software can increase the efficiency of your one employee multi-folds. You can stock your system with all the latest tax filing software like TurboTax, TaxAct Premium, Credit Karma and others.

Tip #5. Recheck Everything

Okay, so if you don’t want to make a single mistake in your client’s taxable amount, then you should follow the approach of recheck all the accounts and reports of your single client multiple times so that there won’t be any room for error. If possible, you should hire tax auditors and different tax experts who can help you in managing complicated tax files.

Bottom Line

Tax preparation services for CPA firms and tax firms are a very complicated process. From managing their staff to make sure that all the other sources of the company are available to handle the rush season of tax period is a very tiresome task. Sometimes accounting firms get too flustered during the rush season that they won’t be able to fulfill their revenue target instead of having too much work. That’s because they spend too much extra on preparing for the tax season.

You never know how busy you are going to be during the tax season so it gets very difficult and confusing for accounting firms to prepare themselves in advance. So, if you are an accounting firm and want to make good revenue during this tax season, then you should keep a remote accounting firm on stand by to share your workload.

And, if you are looking for a good partner to keep you prepared for tax season 2020, then you can contact CapActix at email – [email protected] or can calling on +201-778-0509.

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