The infamous accountant peak seasons. Those are the moments in the calendar when coffee becomes your best friend, and your workplace feels almost like a second home. It is a known fact that workloads may become rather heavy during certain times of the year: a whopping 39% of accounting staff members put in over 60 hours of work per week during peak season, and 22% even go beyond 70 hours. However, why do these peaks fall on us like a ton of bricks every year? Therefore, hire an accountant in Westchester, NY, to manage tax season effectively.
Ways to master the data management of your business during the busy season
The major players have a big say in turning tables: the ever-changing legal requirements, tax deadlines, and the flow and the ebb of business activities.
1. Deadlines for tax filing
The deadlines for individual tax returns are April 15 in the United States. As a result, accountants and other tax professionals have a lot of work ahead of them. However, businesses face many kinds of deadlines during the year, which makes scheduling much more difficult.
2. Regulatory compliance
For accountants, staying informed of constantly changing laws and compliance standards is a never-ending duty. The pressure on accounting firms to make sure their clients are compliant may arise at different times, such as when new regulations take effect or reporting deadlines come near. This pressure can come from new tax legislation or industry-specific guidelines.
You can save time and automate tasks by integrating your tech stack.
You subject yourself to more work and possibly more errors if you lack a controlled, trustworthy data repository—precisely what you want to prevent this time of year.
Here, automation can be helpful. Mechanizing laborious, manual processes like billing, invoicing, and processing payments will reduce your administrative workload and give you more time to focus on providing higher-value services.
Integrating solutions, like tax recording applications, allows you to expand on your single source of truth and save a ton of time during peak hours. They also maintain data accuracy across platforms, reduce the chance of errors, and optimize your processes.
The benefits of modern technology
Accounting and tax professionals can benefit from a variety of other advantages by implementing the appropriate tools and practices. A more detailed look at how these advances can change your practice is given here:
1. It provides accuracy and compliance.
You are much less likely to commit mistakes if you have better data management. This is especially crucial in the accounting and tax industries, where precision is required, and compliance with constantly changing tax laws and regulations is required.
2. Increases efficiency and productivity
You can take on new customers or devote more time to your more sophisticated clients by streamlining your operations and spending less time on administrative tasks. This can have a direct influence on your profitability and productivity.
3. Business activity cycles
Many companies, especially larger ones, follow fiscal years that rarely coincide with the calendar year. This means there is a surge in demand for year-end financial reporting, audits, and other accounting services during specific times of year.
When all of these elements are taken into consideration, it becomes clear why accountants feel overwhelmed at specific times of the year. Rest easy, though; we will be going over some survival strategies in this guide to make sure your accounting departments or you can handle these busy times like pros.
How can outsourced accounting teams help handle the demands of the busy season?
- One of the most prominent advantages of outsourcing is that it provides you access to a worldwide talent pool.
- Recruitment costs can be reduced by up to 70% for companies due to the cheaper cost of living in the nations where these services are located.
Accountants do not simply put their calculators away after the tax deadlines. They take part in a number of activities that provide the foundation for the upcoming fiscal year. This includes doing annual planning, reviewing procedures, and participating in ongoing professional development.