Post Tax Season Review - A how to guide

AUTOMATED TRANSCRIPTION

00:07.11

satvcpodcast

And we're back ladies and gentlemen another episode of strategy and the virtual controller as you'll notice a little bit congested I've taken ah a couple of covid tests already this week and they've all come back. Negative. So I think it's just the common cold which I haven't had for quite some time anyway. Um, enough about me I'm Damien Grayhead sitting in sitting in Sydney. It's a rainy day here. My co-host penny bresland in San Diego penny hopefully you're faring a little bit better than I am.

00:35.50

penny

Um, um, no, we have even though it's April we've got may gray and now but like it to I grew up in Boston I like kind of raining supporting days like this. So it's it's all good with me I like it.

00:39.43

satvcpodcast

Um, already.

00:49.42

satvcpodcast

Yeah, it's quite a. It's quite miserable. You might actually be able to hear the rain in the background and we've been having um quite epic rainfall and and quite biblical rainfall. So it's um, the the ground and everything is already solded and so I'd imagine some more flooding is on the way. Thankfully, we're on the hill. So we watch all the water um rush on by. But yeah, nothing just nothing dries out and everything's just damp which is um anyway, that's not the topic of today's conversation I don't think but um as you said where we're in April will we just kicked off april. Tax season draws to a close April fifteen um rightfully so a lot of practitioners will will take some time to to relax and and recover but often what I see penny is that relax and recover probably takes a little bit longer than. Not that it should but it takes a little bit longer and we slow down and then all of a sudden we're into summer into school holidays and before we know it, we're back into another tax season and we haven't really made any sort of any of those changes in our firm that that we're causing as headaches and frustrations during tax season. So. I thought today might be a really good opportunity for us to discuss an after tax season review and and give listeners a couple of ideas to what they can do when they get back in in the saddle so to speak first first week second week of may what are some things that they can be doing in may. Get a start on this change because we're all about how do we? we move away from same as last year but for us to do that. We've we've got to identify areas that we want to change and and I think in an after tax season review is a really good place to start? What do you think.

02:37.52

penny

I Think it's a great idea. Not only for tax firms. But for bookkeeping firms and the bookkeeping firms could probably set that now because the corporate texts are already done. Um, we have a couple of clients that.

02:49.12

satvcpodcast

Yep.

02:56.86

penny

Do do that and so and we know they do it for a couple of reasons one is we'll get starting in June. We'll get new procedures new updates on how we're going to do stuff ah on new applications that we're going to be working in. But. I have 1 client that it's interesting the way she does it. You've actually interviewed her on here.

03:21.36

satvcpodcast

Yeah, Rachel a great episode actually folks so go back into the the archive and have a look for the special guest episode with Rachel.

03:30.42

penny

Yeah, she does that with her team now she takes them on holiday. Um, she she's gonna do her vacation I know because she's. She's told me well you know when you're in Orlando at scale you could do you could stay up my house because it's you know, just up the road and I won't be there I'm gonna be in Hawaii because I'm gonna be on my vacation but ah she will take her team to a very nice destination and they will. Spend the week and 2 hours of every day of that week they have team meeting and they go through the clients how they approach them how they like them whether or not they want to keep them. They go through. The applications that they use with the clients how well was that working what's not working what might we need to look for to add to the tech stack and then they go through their internal procedures. Um. And every year they they they they'll pick out 2 or 3 things that they need to focus on um and then they'll do these shows these the ai cpa show scaling new heights I know because we'll go into couple of them with them. Um. And they're going a digital bookkeeper conference this year and then they will that way when before they get out to the show. They know what they need to pay attention to they're they're going to hear everything but they're going to be looking specifically for certain things. And then they'll come back and from that week of fun and it is fun because I I got to do a few of them with them. Ah, and they're ready to go and they're and they're they're excited because everyone was heard everybody. Was listened to during that time and everybody's pain and happiness was brought out so that they could see what's working and what's not working and at which level in the firm the tax cpas obviously have their side of it. And then the bookkeeping managers have their side of it and the administrative staff has their side so she's got all of them mail and they they they come up with some really good stuff and um, the nice thing about it is that means they're always working.

06:09.18

satvcpodcast

We need speak on this exist.

06:19.31

penny

In their business but they know that they have to set specific time aside so they've they've gotten very used to just making a notation while they're working that that's something I need to pay attention to during that week and bring up during that week

06:38.39

satvcpodcast

And you've always been a big fan of that penny where you and I'm not very good at it I must admit I I scribble it down on a piece of paper and and and then I find it three months later whereas you're very good at putting it into into the system.

06:38.85

penny

And so I think it.

06:53.28

satvcpodcast

And says remind me in a month about once I'm out of busy season remind me about workflow remind me about particular client or something along those lines. You're very good at that and I just have pieces of paper.

07:02.18

penny

Know what? what else is I got these multiple screens so I keep that work tasking workflow open and so it's come up I'll just I'll just make I'll do my daily notes and then I could just say.

07:11.11

satvcpodcast

Yeah, so it's coming up I just post suspect helps by date.

07:20.81

penny

Remind me about this. Well for me, it's gonna be may first because April Fifteenth I'm digging a vacation too and but it's not long where I want to pay attention to anything other than ah, a good book and maybe a joint. No no, but a joint wouldn't be bad. Um.

07:26.14

satvcpodcast

Lovely.

07:32.43

satvcpodcast

This icy mogarita.

07:40.13

penny

so ah yeah so I mean you just yeah I don't want it bugging I know it's got to be taken care of. It's something I work through I got through it but I don't want to have to do that again. So I'll make a note to go back and look at how what is it that I have to do. Is it a technology issue do I have to look at different technology or an app I do feel like 1 client where where you were using a cash flow app for them that they don't like and so they want us to look at a different one. Um or is it a communications thing. Um. I just got off the phone this morning with the client that ah and this isn't a cpa client or a bookkeeping client. This is a direct business and it was how she is capturing her source source documents an application that she was using isn't working very well and. She was getting kind of confused on some stuff and she she said I feel really bad because I've taken a lot of your time and I said no, don't worry about that I said I'm I'm capturing everything that you have in a frustration with and over the next two months I'll come up with another solution. How's that because okay, you know so I just put it in my. Tasking application while she was on the Zoom and set it to show pop up to me in may to find a solution for um.

09:02.43

satvcpodcast

Fantastic. So and and I remember a couple of episodes ago we did talk about that as well as look and back then it was January and it's now's not the time to try and fix x y and z but just put it put it put a note and put a reminder so that it'll pop up. Come may first when you're back online and and you can give it your full attention. But I do want to go back to um to Rachel's situation and and because what I think you did there penny was you actually just created a really nice agenda for listeners of of firms of all sizes and and I think that's important as well. Rachel's what 7 people 8 people her firm just.

09:40.70

penny

Oh she's in two states. Um, she's got 4 with me one 2 I'm trying to count all the admin staff to 4 5 six seven

09:53.91

satvcpodcast

Okay.

10:00.59

penny

8 plus my 4 yeah eight four

10:01.79

satvcpodcast

Okay, so so whether you're ah ah, a 1 or 2 3 person firm. Ah an 8 person firm a 25 person firm. A really nice agenda there for this after tax review where and I wrote them down. We we spent some time on the clients. Who do we like who's a problem child that we can either fix and and actually go back. Go back to that episode because she Rachel has a great way of fixing clients and I say that inadverted promise. Um, so fix or who do we have to make some tough decisions about.

10:23.20

penny

Okay, rid of.

10:38.38

satvcpodcast

Ah, then it's onto the the technology the apps, the good, the bad and ah and ugly with one tax season or with a couple of months of of bookkeeping under our belt now are the apps doing what they promised again. Is it a training issue or. Do we need to to review and get rid of some and identify some gaps so we had clients apps internal procedures 2 to 3 areas to focus on and then what events are we actually going to go to to learn about these particular areas. So. Um, I think that's a really great agenda for an after tax season review I think and and as you said Rachel does it over five days two hours each day. that's that's amazing but again I think over two and a half days you could take the team. You may not need to go to an exotic location. But you might be um I would recommend get out of the office. Get you know ah a local restaurant probably have a meeting room or ah or a local hotel have meeting rooms go somewhere somewhere different outside the office and talk through these exact things. Yeah.

11:48.48

penny

Yeah, you know it's it's it's funny good. Well would I go with her I've done this a few different destination locations with her and and the first time I did it I'm going. Yeah, we've been here.

11:51.34

satvcpodcast

You know it's kids.

12:06.35

penny

For a day and when are we going to have a meeting and Rachel looked at me and she goes penny sit down. Don't worry just listen and I realized that there are designated times where they go up and I wasn't in all of those designated times because some of that stuff was stuff I didn't need to be involved in. But they also just talked during the day and it's ah a it. They'll just be chip chatting being social each other and then all of a sudden something will come out somebody will pull out a ah pen and paper drop jot that down so when they get into that 2 hours

12:29.29

satvcpodcast

Yeah.

12:45.13

penny

Might be added to it. So there's a lot of relaxation and getting away and getting yourself out of a space and into a totally different space and relaxing sometimes really gets the the mind juices from so ah yeah, Dave works out very well and I've done this. I've watched her do it now 3 or 4 times and with her team and I and um I've been in you know day meetings and other people's offices and I could tell you that she does fairly well, she doesn't have any turnover on employees and um and her clients are very happy.

13:22.27

satvcpodcast

Yeah, that she's she's definitely doing a lot of things right? But I think also the other side of it is. She's she is working with intention and that's what we've been talking about ah on the podcast is being very intentional about the the team that you bring on.

13:23.16

penny

So all these some people.

13:40.50

satvcpodcast

Roles that they do the clients that you work with the services that you provide that didn't happen overnight. Um, and that's been a process and I think hopefully if if folks are sort of sitting listening to today's episode um you don't have to change.

13:44.80

penny

Now.

13:53.64

penny

So.

13:57.91

satvcpodcast

The entire business overnight and and if you try to change too many things in your business. You'll you'll probably end up um, frustrated and and ah and spinning your wheels and and just end up doing the same as last year so take some time. Um, enjoy your your vacation. Enjoy your holiday. Um, and then just think about what are the 2 or 3 things that I want to focus on this year because if you can identify those in in may it's going to help you identify what events you want to go to and and what areas. You want to learn about I think it's just going to give you a lot more focus as you go through spring and summer and be in a much better position in in September October when when the sort of the tax extension season happens and and then undoubtedly when when the next tax season. Um.

14:54.16

penny

So because it's gonna be here. Well it's out again with all the extensions. We know it's going to start in September um, yeah, and the other thing too is you've got a little bit of ahead of a time if you do have to change a technology or you do have to change a procedure for a client. You have the the time when.

14:54.60

satvcpodcast

Comes along. Yeah yeah.

15:13.92

penny

It's not the busy season which has been for the last few years to either spend time learning and implementing and then integrating that technology and I don't mean necessarily an api integration to another tech stack but just integrating it into your company.

15:14.53

satvcpodcast

Um, yeah.

15:34.50

penny

Workflow and then you also have the time when it's not critical to spend with the client to onboard them to this technology if it's a client facing 1 so you know it's it's better to do it. Is is is it tied as everybody gets you know I see a lot of things like well I know we'll slow down a little bit on the amount of workload we're going to get in June July and August the thing is the businesses don't slow down. They don't and it's a good time to.

16:05.23

satvcpodcast

No.

16:13.39

penny

Implement changes with those companies to make sure that when September or October or to that January starts again like you know? Ah why not start in August going through that ten ninety nine report why do you wait until everybody. Well once somebody once told me well the reason we wait is because the tax ten ninety nine whatever software. We're using. It's not ready to implement yet excuse me the people the spending the money now. The.

16:49.65

satvcpodcast

Um, yeah.

16:52.11

penny

The checks are going out and getting cash. You could be collecting the data you know with that you know the data you have to collect you just know it but invariably. It's like it's January tenth and we're going to get started like.

17:00.71

satvcpodcast

Yeah, we put the data that um yeah, ah.

17:09.56

penny

Because you've been so flipping. Okay, where's my quarter job. You've been so and busy for the last you know and why didn't you stop this in the summer when it's not so busy. Yeah.

17:21.40

satvcpodcast

Yeah, and and and again you don't have to change everything in the business but that there's a couple of things that you could just get some systems get some processes up and running as you said ten ninety nine start collecting that data. There's no yeah as you start collecting the data now.

17:38.58

penny

Um, yeah, yeah.

17:40.48

satvcpodcast

Um, so come January when the software is ready. Um, it's a it's ah a transfer process rather than a collection processing and population. It's it's just transferring it from. From 1 location into the into the final destination. Yeah.

17:56.79

penny

And and get you clients to stop doing it I in and I know it's hard and god I have enough 2 clients that I know it's a godam pain in the neck. But um, it's got to be done and I if I'm going to if I'm gonna have to. Start I might I'd rather started where I have maybe okay I got 15 minutes today it's on my to do list I just reoccur the task every day and I'm going to do 15 minutes of that today. So that when it comes January you know it's kind of like you know, launding to a lot of day.

18:22.68

satvcpodcast

Yeah.

18:32.77

satvcpodcast

I know yeah and that's the thing. Yeah you you make it you make it that regular recurring task so rather than this massive ah behemoth in January when you've got everything else going on. But I think also ah you know like.

18:34.93

penny

Um, next.

18:49.11

satvcpodcast

You've probably listeners are probably implemented apps in in October November December there may be a new workflow. Probably not getting as much out of it as you anticipated. So now's the time to say righto. What's what's the technology. What do we need to get more training on. Get that booked in with the suppliers because I I can almost guarantee you every single technology provider if you were to give them a call in may and say um Damien we'd like to book out book our team in for some training just to make sure we're getting the most out of out of this. They will First of all fall off their chair but they will bend over backwards to to help you get the most out of the technology using it your clients using it etc so identify what are the couple of apps that you really want to nail this year that you've already got.

19:25.67

penny

Yes.

19:44.73

satvcpodcast

Or alternatively any gaps that you've got um because you you might be able to run systems concurrently over um June and July just to see how you like them June July August and then you can make that decision in September rather than sort of rushing a decision in um, the the week after thanksgiving.

20:03.25

penny

Um, and and more you're going to get more buy-in from your staff when you're doing it and giving them the breathing space to learn something rather than you know implementing it I went to all these shows.

20:04.70

satvcpodcast

And then trying to implement an im piece of technology. Yeah.

20:22.13

penny

Shows are over in November. Okay now let's make a decision. We saw everything? Yeah, you know what? you're gonna see everything in 1 show. These things are kind of that shee us, you know the same speakers. That's so um, you go know you.

20:28.32

satvcpodcast

Gift.

20:38.31

penny

There's not you know anything? that's gonna be new. This year is gonna be coming out this spring and summer. So um and get get it started. Don't wait. Don't wait and and and.

20:41.71

satvcpodcast

Yet.

20:50.82

satvcpodcast

And actually and give it to your team. Ah so rather than this being on your shoulders give it to your team to say righto what Apps did we like didn't we like and then have them go through the assessment process and and get them involved in that.

20:53.87

penny

God Sakes Please don't use excel as your workflow.

21:10.76

satvcpodcast

In that take them to the conferences and um and and get them involved in the decision making ah the implementation and the training will will be infinitely better if they're involved from the get-go.

21:22.62

penny

Oh Absolutely because when you get buy in from them. They're gonna use it I see this a lot a lot of good good apps out there and then somebody go Well you know it didn't really work for us. I'm not sure and then could we could We could We just take a look at the way you're running it. Yeah, you didn't really use it. You wait a minute you've got you've got one user on it and ah literally did see this one person in the office using this really nice.

21:44.30

satvcpodcast

Yeah, yeah.

21:57.42

penny

Workflow system and everybody just telling her what to set up and then telling her when they did it and then asking her. What do I do next look of who's the bad. Be a but green idiot in the room. You know I've seen.

22:03.89

satvcpodcast

Um.

22:14.80

penny

And happen though and it's it's sad. It's sad because you know it's a good product and and then ah, what happens is you? you end up, there's that company true bill that tells you how many things you're buying online assesses. Everything now. So how many.

22:29.11

satvcpodcast

Oh yeah.

22:31.97

penny

Foring pain said look at yeah you paying for something that you're not using and then you get angry and you don't use it and you might not look at something else instead look at I can guarantee you that everything out there is usable otherwise they wouldn't be out there in the market. So.

22:44.65

satvcpodcast

Is it.

22:51.65

penny

What is it? That's not working is it the app or is it you and your team.

22:54.69

satvcpodcast

and and I think also um, just because an app doesn't have a very specific report or whatever it probably has 95% of everything that you need but because it doesn't have this one thing it's it's immediately discounted or sort of cast aside and.

23:10.80

penny

um oh yeah um yes the this morning guy goes I don't know if I like that I don't like the reports and I'm going. How would you know if you don't like the reports you haven't reconciled any of these books for the last two quarters

23:12.92

satvcpodcast

I think I I see that a lot been like well. Ah I don't really like I don't really like the reporting unit. Yeah.

23:28.44

penny

So don't tell me you're in there making reports you pulling this stuff out of yeah anyways, so what feature of it is it worth anything. That's that's bogus bullshit.

23:31.50

satvcpodcast

Um.

23:39.41

satvcpodcast

Yeah, but it's just so funny though because and I even remember this when we were thankfully we're having less and less conversations about desktop versus cloud but I remember talking with 1 firm and and he was ah Damien I can't go to Quickbooks online because you know. Construct doesn't work for my construction clients and I was like Stan how many construction clients. Do you have and he was like oh about 3 and I said how many arent small business clients have you got oh about 140 and was I stan you're making you're making a decision on the based on the minority. Of your clients rather than the opportunity in the one hundred and forty and thankfully it was a bit of a light bulb moment but I think penny we we make these decisions with the wrong paradigm with the wrong mindset.

24:26.44

penny

First yeah, we're making it from a standpoint of a negative aspect of our business. We're looking at a negative thing in our business. It's not working and I'm going to make a judgment call on that instead of looking at what things are working and what could we make work better right.

24:37.25

satvcpodcast

Yeah.

24:45.55

penny

Now I'm making the decision based on a positive aspect in my business and then maybe i' be a little bit more understanding of the fact that maybe those 3 construction clients are not even clients we should be working with because that's not our forte and they're not good clients and you're not making any money on them.

24:57.22

satvcpodcast

Yeah, yeah, I Really like the way you said that let let's make let's make let's our decision making has to come from a ah positive perspective. Not that negative perspective. Well it doesn't work for this client.

25:15.70

penny

Yeah.

25:15.90

satvcpodcast

I Might well hang on is that client actually holding us back or is this client a strategic um that and what we want to focus on then. Absolutely.

25:24.84

penny

But sure because I've gone out to shows looking for an answer for a specific client because that client is strategic and they specifically need this function taken care of that's different. But the reason I'm going out there is because it's a positive thing because they are a strategic client and it is important for me to do that. But when I just go up to an app and go oh wow, this is really good but you know what it doesn't do that. It's like no what need look and I won't do that you know, ah this song I'm sorry but. You know, then you then you're only looking at things from a negative standpoint and um, you need never going to find anything that works 100% so I can either get 80% of my work done and. Or I can get none of my work done because I'm so busy dissing everything out of it because of the 1 thing it doesn't do.

26:20.46

satvcpodcast

Yeah.

26:25.92

satvcpodcast

Well also I'm so damn busy. Most likely being distracted by distracted by shiny objects and fighting fires because I haven't gone about um the building the business with that intention that we've been talking about I don't have a plan. Like and even just sort of as we are talking about events and conferences I know a ton of people that go to an events and conference with with no plan and so basically they talk to everyone and they they basically they they don't achieve anything. Because they haven't actually gone into the event with a plan of the areas that we want to focus on the apps that we want the the technology that we need to solve for the the clients that we're thinking about there's no real There's no real planning around that and I think. Now is a well sorry, not now but sort of once we come back from our our vacation in may really good opportunity to think about what are the 2 or 3 things we want to focus on this year let's nail them and then we'll move on to the next thing.

27:30.78

penny

Yeah, because each of these ah each of these conferences tend to have tracks. Anyways, I mean you can't you can't go in there and and get everything. Um so focus on what you can do this year

27:37.90

satvcpodcast

And.

27:48.24

penny

Um, you know mean and think about it if you could if you could ah increase productivity um with a lot less strain I mean everybody can increase productivity because you're turning away clients at this point everybody wants bookkeepers now and accountants. But really I mean if you if you want to increase.

27:59.13

satvcpodcast

Yeah.

28:07.59

penny

You know quality of life if you want to make sure that the people that you have working for you stay working for you if you like them. Um, you know what give them the tools so that they can have that work life balance that they so. Desperately wanting. You know everybody's a little bit tired and everybody's a little bit edgy because none of us have had a decent work life balance because all of a sudden work became home and home became work so give them that opportunity and if you could give them 10% a day of that is that worth it is that employee worth it.

28:30.54

satvcpodcast

Um, yeah.

28:41.36

penny

Is keeping that employee worth it. I don't know if if keeping your sanity. Yeah sure why not but it takes it takes a ah mindset to to think about it ahead of time to not just go in there off the cuff and do it and then when you're going in off the cuff. Not. You end up thinking about the 1 thing that it didn't that didn't work and now we got a negative mindset and I ah hear me I can't believe I'm saying this stuff because it's kind of that's kind of stuff. One of my best friends she she's us spiritual heal and you know I live in ensonitta's Yogaville and sometimes I go. All roll my eyes at her and I can't imagine that people out rolling their eyes me because I can't believe I'm saying this stuff. But if you don't have a positive mindset when you go out there. It's just gonna be a really really It's gonna be another year like last year that's

29:31.39

satvcpodcast

Yeah, it's gonna be miserable and your teamme's gonna be miserable and as we've seen. Yeah yeah, they're gonna go away because because yeah because we we in the last 2 units. We've seen that we can work from anywhere and.

29:35.88

penny

And they get a click up somewhere else.

29:47.94

satvcpodcast

Virtual firms are growing incredibly rapidly and they're recruiting across the country. Um, and I think as an account and and a bookkeeper good quality accountants and bookkeepers. They're quite like unicorns and so they they will be lured away very easily. So. That negative mindset I think is I think is just destructive and and I think how do we get out of that. Um I think one way in which we can get out of it is is just having that focus to say I don't need to change the world but this year I want to change these 2 things and and be okay with that and work towards that. And then give yourself a pat on the back because you have implemented a really robust workflow that just helps organize all of your tasks team knows what they're working on I'm just using workflow as 1 as 1 example, but if if you can achieve 1 or 2 things improvements in your firm. As a result of this focus and intention. It's going to change that that dynamic in the firm quite dramatically.

30:51.32

penny

And I think it gives the people that work for you. Um, a reason to see a vision for the future I mean if you if you run everything off the cuff and you run everything off the negative then you, you're running a business that doesn't feel like it's going to be here for Emma so why should I be here.

30:57.35

satvcpodcast

Um, the.

31:08.89

satvcpodcast

Um, yeah.

31:11.16

penny

Um, but if you do things with purpose and you involve everybody in it then there's a vision that everybody shares on now and it's something that you can't just do once you do have to revisit that constantly. Um, you do it like ah a pulse check where are we.

31:23.33

satvcpodcast

Yeah, yeah.

31:30.19

penny

On that vision put it up on the wall where are we are we hitting it are You are you happy with where's going to this come out the way we expected it to and if it didn't what what do you think? the reason is that it didn't come out and was it. The technology wasn't the people wasn't the process.

31:46.17

satvcpodcast

And what was it The was it the vision does that need to be adjusted and iterated and and and that's ah, that's I see a lot of firms. Do do that and maybe this is a whole nother episode but they they put it up on the wall and never review. It never go back to it.

32:02.93

penny

Know you know and about halfway through the year it just starts sagging and 1 car just kind of curls over it then flood the vision. It's like oh my god yeah.

32:04.69

satvcpodcast

And and so maybe that's part of it as well. Um, good. Yeah well penny I think that's a really good place to to leave today's episode I really enjoyed that one actually in terms of after tax season review and and hopefully listeners are thinking. If if you are listening and and you're thinking I've got to do this do as penny does open up your task management set open up your calendar put some time aside now in may um, and set some time aside to like build agenda invite the team. So. Set those tasks now and then forget about it get on with tax season and then get on to vacation and rest and recovery and then come back and and do this do this session penny you're speaking at the accounting web summers in San Diego is that right.

32:59.89

penny

Yes, get Diego and may ninth through tos.

33:06.82

satvcpodcast

I'm speaking at the accounting business expo in Sydney at the end of April Twenty Eight Twenty Nine I think I feel like Bill Maher sort of come and see us live at at these particular rats. But um, but if you are going along make sure make sure you do come up and say hello hello and and let us know that you are listening to the podcast. Penny I know you've got to get on another call as do I but have a wonderful day and we'll see you next week thank you yeah

33:27.96

penny

So thank you, You have a good one.