Posted on: February 10, 2022 by Huntersure LLC.
Bringing in the new year marks go time for accountants. Both CPAs who serve businesses as well as those whose practice concentrates primarily on preparing taxes for individuals have an extremely heavy workload from January 1st until the middle of April. The past year has been more financially volatile for employers, workforces, and independent contractors. In addition, various modifications to specific state tax codes as well as the rollout of various business assistance programs have added additional layers of complexity to many returns. Here are some ways that CPAs are managing particularly onerous obligations during this busy tax season.
Recently, staffing shortages have been plaguing virtually every service industry. Accounting is no exception. During the 2022 busy tax season, many accounting firms and tax preparers do not have a sufficient number of personnel to meet their demands.
How do accountants deal with busy tax seasons when labor is in short supply? They must employ aggressive recruiting strategies in order to identify and attract qualified professionals. As a part of accountants’ fiduciary duties to their clients, it is imperative that they have adequate personnel to complete work timely and accurately. Trying to operate within an incomplete workforce could give rise to accountant professional liability concerns and make this busy season overly stressful.
it may be necessary to relax some core criteria for new hires. Companies that provide accounting services may need to be willing to offer training opportunities for applicants that have the right skills for an accounting role but lack experience. They may also need to be willing to repair and orient applicants for obtaining any professional licensing that is necessary to perform certain advanced accounting tasks. Training initiatives must be practical yet comprehensive enough to proactively mitigate accounting professional liability risk.
Accounting firms can access a wider pool of seasonal personnel when they extend employment opportunities to work remotely. Clients are generally receptive to the availability of remote services and many filers are purposefully seeking them out because of the convenience that it offers, so a hybrid working structure can provide multiple benefits to firms.
As so many tax preparers are interacting with their clients exclusively online and filing electronically, it is more important than ever that they be highly attentive to data security. The role of cyber security initiatives must adequately protect clients personal and financial information in order to avert potentially serious liability.
This year, getting through the tax season is going to take Herculean efforts on behalf of typical accounting service providers. The extraordinary attention to detail that they apply to their work will serve them well in adapting to the challenges and trials of a changing environment.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: Accounting