How to stop chasing tax client data

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If you’re an accountant, you know that time is money. However, many accounting firms find themselves caught in a continuous chase for client data. Inefficient data collection processes not only eat into valuable time but also lead to hidden costs that can impact your bottom line.

By understanding the costs of inefficient data collection and practical steps to remedy it, you’ll not only boost your firm’s operational efficiency but also significantly enhance client satisfaction. Let’s take a look.

What are the hidden costs of inefficient data collection?

To successfully streamline data collection, it’s important to first understand the costs associated with an inefficient process, including:

• • Time spent. One of the most significant costs of inefficient data collection is the amount of time spent chasing down client data. Whether it’s sending multiple follow-up emails, making phone calls, or waiting for incomplete paper-based documents to be submitted, time adds up quickly—and could be better spent on more value-added services. Not to mention the time and frustration your clients experience inputting their data manually into multiple forms.
  • Errors and inaccuracies. There is no doubt that manual data collection processes are prone to errors. Misplaced documents, incorrect data entries, and incomplete information can lead to mistakes that require additional time and effort to correct. These errors can also damage your firm’s reputation and client relationships.
  • Delayed services. Inefficient data collection can lead to delays in providing services to your clients. When data is incomplete or incorrect, it slows down the entire workflow, leading to longer turnaround times. This can frustrate clients and may result in lost business opportunities.

3 practical steps to improve data collection processes

Transforming data collection into an efficient and effective process is crucial in reducing operational costs and enhancing client relationships.

By incorporating technology like AI and machine learning, you can significantly improve your service delivery and client satisfaction. Here’s how.

1. 1. Adopt digital tools. One of the most effective ways to streamline data collection is by adopting digital tools. Platforms like SurePrep TaxCaddy allow clients to upload their documents directly to a secure portal, reducing the need for back-and-forth communication. These tools can also automatically categorize and organize data, making it easier to access and manage.
   2. Set clear guidelines for clients. Clear communication is key to efficient data collection. Provide your clients with detailed guidelines on what information is needed, how it should be submitted, and by when. A standardized checklist can help ensure that all necessary documents are provided upfront, reducing the need for follow-up requests.
   3. Automate follow-ups. Automation can significantly reduce the time spent chasing client data. Use automated email reminders to prompt clients to submit their documents. This not only saves time but also ensures a consistent follow-up process.

What are the benefits of streamlined data collection?

By adopting an AI-powered 1040 client collaboration solution, you can connect your staff and your clients in a way that streamlines communication, document gathering, questionnaires, e-signatures, tax payments, invoicing, and tax return delivery.

SurePrep TaxCaddy is the ultimate 1040 client collaboration software and provides the most taxpayer-focused client portal available. It integrates with both UltraTax CS and GoSystem Tax RS and is available both as a mobile app for iOS and Android and as a website.

With TaxCaddy, your firm will benefit from:

• • • Reduced workload compression. TaxCaddy makes it easy for taxpayers to upload documents throughout the year. Don’t wait around while your clients store documents in a pile and mail them in all at once. Workload compression drops dramatically when your staff gets access to documents earlier in the tax season.
    • Streamlined data gathering. TaxCaddy creates an automated document request list based on the proforma data in your tax software. Both your staff and your clients can easily see which documents have already been uploaded to the tax client portal and which are still outstanding.
    • Improved client experience. Other tax client portals focus on the firm’s convenience at the taxpayer’s expense. TaxCaddy is designed to delight both your staff and your clients. Address taxpayers’ needs with native iOS and Android mobile apps, mobile photo-scanning, e-signatures, and automated document retrieval. Offering modern conveniences improves client service.
    • Simplified delivery. TaxCaddy makes it easy to deliver final tax returns, tax payment vouchers, and your firm’s invoice. Clients can render KBA e-signatures, make tax payments, and pay their invoices directly from the TaxCaddy app for iOS or Android.

With faster processing, reduced errors, and more time to spend on higher-value tasks, your firm will delight clients and staff with a streamlined and efficient data collection process.

Tips for training staff

In terms of training staff on new data collection tools and techniques, your software provider should have a dedicated team to help your firm create a custom change management plan and work with you through every step of training and onboarding.

SurePrep has been helping customers implement new technologies since 2002 with customized training and onboarding programs. You also get access to unlimited client support via email, phone, chat, and virtual meetings to ensure that your needs are met.

Are you ready to stop chasing client data?

Learn how customers have optimized their 1040 tax process with SurePrep solutions. Explore resources below.