For businesses, tax season implies paying due taxes and ensuring their companies abide by the prevailing tax laws. But for tax professionals, it refers to the stress of filing tax returns for their clients one after another. If you also prepare and file tax returns of various clients, you would agree to the sameness of the following situation:
Many clients send their paperwork in the last few days of the deadline to file tax returns. Unfortunately, you do not have enough staffing to deal with the sudden surge in work, which makes you and your team feel like you are working round the clock.
The busy tax season brings plenty of workloads followed by stress for the accounting and tax professionals. They want to avoid last-minute hassles and thus, look for tips to prepare for tax season. Before we proceed to discuss many such practical tips, let’s have a look at some of the important dates related to the tax season 2021:
|Jan 15, 2021||It is when the IRS (Internal Revenue Service) Free File was opened and taxpayers could file the return in advance through Free File partners.|
|Feb 12, 2021||IRS started accepting individual tax returns.|
|Apr 15, 2021||Deadline for filing 2020 tax returns|
|Oct 15, 2021||Extended deadline for filing 2020 tax returns|
Tips to Handle Tax Season 2021 with Ease
Speed Up the Process of Collecting Tax Documents
Before you even start preparing returns, you need various documents from your clients. The more time they take to make these documents reach you, the longer the delay in filing their tax returns will be. Although you might have some clients who usually wait till the end to provide the required documents, this would pile up the work at your side as the deadline comes nearer.
Hence, you are advised to do your part and push your clients to send the documents, such as their identity proof, income proofs, proof of losses incurred, to name a few. Suppose you need some specific documents from any of your clients. In that case, you are advised to make a checklist for them all to streamline preparing tax returns.
Prioritize Tasks Related to Filing Returns
Many less-prior tasks in life – both professional and personal, often take more time than expected and then become the reason for stress. The same holds when you prepare tax returns to be filed within the deadline. Since you must be having much work lying on your plate, you must prioritize the steps involved in tax preparation and filing the right way.
By categorizing the tasks involved suitably, you will get a clear picture of the time it would take to complete them. Also, you will be in a better position to focus more on the essential steps while delegating other tasks to your associates.
Switch to the Cloud-Hosted Environment
One way to simplify how you work during the tax season is to host your tax software on the cloud. It will ensure remote access to the cloud-hosted software, which means you can work for your clients from anywhere and anytime. Having remote access to your tax applications during tax season feels like being given some extra hours to finish essential tasks at home or on the go.
Tax software hosting services make the work device-agnostic, meaning you can work remotely using your laptop, tablet, or even a smartphone.
Recommended Read: A Complete Guide to UltraTax CS Software
Double Check for Data Security Measures in Place
While preparing for tax returns, you handle confidential information shared by your clients, which makes it imperative that you ensure data security. However, the increased risk of cyberattacks on accounting firms makes it challenging to keep the data safe.
Irrespective of the environment you work in during tax season, you must implement advanced security measures to safeguard the data. In the local-hosted climate, you need to invest in various security measures. However, if you go for cloud hosting services, the chosen service provider will handle security.
Tax season 2021 has already begun. You know more about the work at hand than anyone else. Hence, it is crucial that you focus on doing it the right way to minimize stress while maximizing productivity.
For more details about how to streamline the tax filing process this year, contact our hosting experts at 1-855-583-7486.