How to fix the “black hole” communication issue in accounting

Tax accountants can often be perceived as a black hole - meaning the gravity of busy work we experience results in a complete lack of communication. We think great tools will start to change this for accountants - here’s how.

Breaking the Paradigm in Public Accounting: Leveraging Technology

Responsiveness has always been a critical challenge for public accountants. Often, we receive updated data only after the year has ended, limiting our ability to mitigate tax impacts effectively.

Moreover, we tend to plan for too few clients. Our primary competitive advantage is the tax advice and strategy we provide, but we frequently interact with clients only once a year during tax return season.

How Do We Break Out of This Paradigm?

There are several components to this solution, and I'll focus on technology. Concepts like reducing client load, charging for year-round service, and including check-ins have been well-covered elsewhere. Let's dive into what we can do from a technology perspective.

FIND DATA

The first step is better access to client data, a key goal of our TruePilot platform. When tax laws change, we need immediate insights into who will be impacted. We can quickly identify clients needing advisory services through targeted searches, unlocking benefits and revenue opportunities. Here are a few examples:

• Clients who owed taxes last year: Pay estimates.

• Clients with income over $50k on Schedule C: Form an S corp.

• Clients with pass-through income lacking PTE deductions: Elect to pay pass-through taxes.

• Clients with losses on Schedule C: Compliance and planning.

We're constantly adding to these queries based on user feedback. These searches help identify clients needing services, and TruePilot can generate exportable tables for staff and pull relevant forms from previous returns for reference.

START PLANNING

Next, we create a plan and showcase potential savings. Our soon-to-be-released product will streamline this process. Starting with a base year, we calculate tax changes and adjust plans quickly to reduce self-employment taxes, penalties, or estimate payments based on salary increases or capital gains. This planning should take just a few minutes, avoiding the complexities of traditional tax software or custom Excel projections.

UPDATE THE PLAN

Finally, we share the plan with clients, allowing them to check in throughout the year. Clients can update their income, submit paystubs, or provide account statements, enabling us to calculate estimated payments swiftly. We aim to make it easy for clients to stay engaged and remind them to do so.

By achieving these steps, we can provide a better client experience and significantly more value. No more clients who merely tolerate their accountants – we can become a vital part of their team, driving more revenue in the process.