Top 6 Modern Software Features for Tax Prep

Tax prep season is here, a time when many accounting firms have completed that final year-end push and taken a well-deserved break at the start of the new year. Thankfully, as we enter 2024, technology has developed to allow accountants to work much more effectively. 

With the right tech stack during tax season, you won’t feel like you must devote every minute of the day to work concerns so that things don’t get out of control. Read on to learn about six great things modern software can add to your workflow to help make this time of year less stressful:

1. Client communication portals

Like most client services businesses, accountants need to get input from their clients at several stages during a typical project. The big difference with accounting firms is that this input must be provided in a specific way, at a specific time, as dictated by the law. For an accounting firm, not getting a signature or approval could have disastrous consequences.  

Client portals make it much easier to get what you need in a timely fashion. Instead of worrying about your critical email requests getting buried in a client’s inbox, you will be able to point them to a dedicated space to provide everything you need or ask questions when they have their own concerns. 

2. eSignature

The days of needing a client to print out, sign, and then mail or fax a document are long over. Electronic signatures (eSignatures) allow users to add their signature to important paperwork with just a few clicks. Depending on the specific protocol you use, clients may even be able to add their signature to a document from a mobile device or tablet, meaning they don’t even need to be in their office. Studies show eSignature can save a significant amount of time for you and your team. 

3. Cloud-based team management functions

We’ve seen some accounting entrepreneurs who long for “the good old days,” when their firm consisted of a handful of people, and they didn’t have to worry about elaborate team management tasks like timekeeping or payroll. And while it may have been nice to have fewer concerns within your firm, there’s no comparison when it comes to the amount of things you can get done working with a team.   

Cloud technology lets you enjoy the best of both worlds – not only is it easier for you to do things like process timesheets and expense reports, it also makes life easier for your team since they can complete work and log hours from anywhere. During tax season, the saved time and effort can make a significant difference for your team and the firm’s bottom line.

4. Post-project analytics

Most accountants we talk to find it easy to get sucked into the “whirlwind” of day-to-day tasks. A client sends an email that needs a response, or a form has to be filed at a specific time. Maybe a personal matter that can’t be put off comes up during the day. By the time you get done with all of these little things, there’s not much room for thinking about how your projects went – especially during tax prep season.  

This is where analytics software can provide significant value to your firm. Even if you don’t get a chance to review your numbers in-depth until after your busy season, it’s important that they’re being tracked and stored in a way you can access and understand. From sales numbers to customer support, the more information you’re able to capture about your firm’s performance during tax time, the easier it will be to identify areas for improvement.

5. Customizable notifications 

When things are at their busiest, the number of different requests an accounting firm has to manage typically increases. Having to deal with more than your usual volume of work over a short period of time is a recipe for things to slip through the cracks.   

Using the right accounting practice management software, during tax time, you can configure a system of notifications that alert team members via email when they have a task approaching a due date or need to be sure that they’ve hit a particular progress milestone.

6. Editable templates

Although it’s important to give individual attention to each of your clients, during tax prep season, you’ll likely find that your firm has to finish some of the same tasks for different clients. These tasks often involve asking clients to send some needed information via email or to sign or complete a specific type of form. 

If you know you’re going to be sending the same messages and documents repeatedly, why waste effort typing them out manually? Instead, take advantage of accounting practice management software that lets you build customizable templates for things like service contracts, emails, and account statements. 

Final thoughts on managing tax prep season with technology  

There’s no way around it – you’re probably going to be busy during tax prep season. But there’s a fine line between being busy and working so much that it starts to negatively impact your health and your firm.  

Take advantage of these software features – commonly found in accounting practice management platforms and other similar programs – to lessen the load so that you can squeeze out a bit more downtime at the end of the year without sacrificing your firm’s productivity.