Tax professionals know the need to file extensions is a common occurrence, especially among small businesses. While extensions can provide a temporary reprieve, they’re often symptomatic of deeper issues, particularly poor bookkeeping practices on the part of the client. Filing an extension can offer relief, but it also delays the inevitable and can strain client relationships and compliance efforts. Not to mention it can really cost them the big bucks in interest and penalties.
Accountants are often in a unique position to help businesses avoid these pitfalls. Let’s explore how poor bookkeeping practices can lead to extensions, and offer strategies for accountants to help clients better prepare and avoid last-minute panic. We’ll also highlight how automating your firm’s bookkeeping can help keep clients on track and avert the need to extend.
Educate clients on the importance of good bookkeeping practices and the potential risks of disorganized records. Explain how small, regular updates can save time and money. If they make regular errors or omissions, encourage them to let your firm handle their books for them. True, that definitely means more business for your firm, but it can also mean overall savings for the client. Especially if their books are frequently a raging dumpster fire you end up having to put out.
Introduce automation tools such as Botkeeper, as mentioned earlier. It gets your firm out of the day-to-day effort involved in keeping the books current, and provides a forum for communicating with your client specifically about their finances — that opens opportunities in advisory. And way more sanity for you.
Offer customized services that cater to the specific needs of different businesses. Tailoring solutions to each client helps ensure they’re receiving the level of support they need.
Tax filing extensions are often a sign that businesses need more consistent and thorough bookkeeping practices. More to the point, it’s often a sign that they really need YOU to do it for them. By providing guidance, offering small business accounting services, and leveraging automation, accountants can help clients avoid the need for extensions while fostering healthier financial practices year-round. Ultimately, these proactive measures lead to smoother tax seasons and stronger client relationships.
Once you have control of your client's bookkeeping, automating it brings you a step closer to accounting perfection. Botkeeper Infinite, at just $69/month per client is the perfect solution. Get started with it today!