Alright everyone, let's be real - it's still a crazy world out there in tax and accounting, right? It feels like we've just barely caught our breath from one change before another one hits. And honestly? Things aren't getting any simpler. As much as we all wish we could just go back to the way things were, that ship has sailed. We’re in a different landscape now, and what worked just a few years ago isn’t going to cut it moving into 2025.
That’s why we put together this playbook. No, it’s not some magic wand to wave away all the challenges, but it is a practical guide. A way for us to, as we’ve been saying, "evolve" and "pivot" so we’re not just surviving but actually thriving in a market that feels like it’s constantly shifting beneath our feet. We're not here to tell you that everything's perfect, but we are here to show you how we can control the narrative and really take the next step forward. It's time for a new game plan.
Let’s talk about some of the elephants in the room, the things we all know are happening right now in all of our firms. And we're gonna start with the big one, the staffing "bugaboo." If you’re anything like us, you’re still pulling your hair out trying to find (and keep!) good people. The turnover is insane; larger firms are constantly poaching from smaller firms, and the next generation is looking at the market and saying, "I don't know about that work-life balance." The compensation for tax and accounting professionals has risen, for sure, but honestly? It’s like we can't keep up with it all, and it's still a struggle to find the right fit.
Let's just admit it - so many people in this industry still have some lingering "PTSD" from all the changes we’ve been through these past few years. 2020? 2021? Whew. It's still affecting the team and really does take a toll on the motivation and commitment to the firms. It's the constant scramble to keep up that makes it all seem unmanageable.
And it’s not just about finding and keeping good staff. It’s also about what happens when someone leaves, right? How do we keep the quality and consistency of our work from suffering? How quickly can we train a new person to really own their work product and not just be a "fill-in-the-blank" player? It's not always as easy as it seems.
Then, we look at our clients and the nature of the client relationship. They're not the same as they used to be. These days, it seems like clients are almost completely detached from the technical parts of tax prep. They just want the end result without really understanding all that goes into it. So, then we end up having to be that "bedside manner" person, or a "de-escalator," as we've been saying, because they really just want to know that someone has their back, and it’s almost less about the tax prep process and more of the advisory, consultative approach.
Speaking of change, we all know AI is out there, staring us in the face, and it feels like it’s this great tool, this shiny new thing, but it's also a little bit intimidating. How do we use it without losing the human element? How do we navigate what feels like a sea change in the industry where new things pop up each day? It’s a different skill set than what we all went to school for.
It's all about how the industry has now evolved into more of a consulting role, which means now we're responsible for what was once compliance tasks and the expectation on us has grown in scope and depth.
Then there's the data; we all have it, but the real value is in using it. We know that other industries like financial planning firms are using client tax data to do the planning, and if they’re doing that, and we’re not? That’s a problem. It is imperative to know our clients and be proactive with our advice and guidance.
And let’s not forget some clients are just… well, not a good fit, right? They might have been great clients once, but maybe they don't align with where we’re trying to go or what we’re trying to do. Or, they’re stuck in that “old way” and make it harder to implement new processes. And honestly, how much longer can we keep catering to them if they are a drain on our time, energy, and resources?
This is a heavy list, we know. But we have to name it to change it. And this isn't about doom and gloom. It’s about seeing the reality so we can start mapping a path forward.
Alright, so we've laid it all out there. The challenges are real, no doubt about it. But honestly? With challenges come some serious opportunities. This isn't about just surviving the next few years; it's about taking control, reshaping the way we do things, and creating firms that are truly built for the future.
One of the biggest shifts is seeing our client relationships in a new light. We've talked about how they're becoming more detached from the process of tax compliance, but you know what? That's actually an opening. It's an opportunity for us to step into that trusted advisor role and provide true, value-added services. It's about moving from just being the "tax preparer" to becoming the go-to consultant, the person who has their clients' back.
Now is the time to start having those conversations with clients where you can tell them, “Look, things have changed. What we’re doing now is different, more complex, and it deserves a different level of investment.” It’s about stepping up and taking control instead of allowing clients to dictate the pace and service they receive.
Let’s be real, with this comes the need to re-evaluate our engagements and pricing. If we’re doing all these extra things, why are we still getting paid the same old rate? We’ve all been there, where we’re providing a ton of value but not getting compensated fairly for it. This is a chance to correct that and clearly define the services that deserve a higher price tag, making sure that your firm’s revenue keeps pace with the increased demand and complexity.
This is also where using data becomes our superpower. We have all this client data at our fingertips, and it's not just for compliance, this data is a gold mine for seeing trends and opportunities. When we start leveraging that, we can identify the best-fit clients and start to pinpoint the clients that we can assist with some proactive tax strategies, not just reacting to the things that came to be, but creating a future with them. This is when we begin to step out of our reactive state to the proactive planning role we deserve.
Don't even think about sleeping on the AI piece. We all know it seems a bit intimidating right now, but we need to shift our thinking and see AI as a tool, not some replacement for our jobs. It's a way to help us be more efficient, stay on top of things, and even come up with new ideas and methods for our clients. If we embrace these tech tools, they really can make all our lives a bit easier and allow us to elevate the level of services we provide.
But here’s what we need to remember: the skills we went to school for are shifting. It's not just about being a tax expert anymore. It's also about the "power skills." Things like communication, de-escalation, and consulting. If we all are moving towards that advisory model, we need to ensure the team is equipped with those capabilities as well.
And I want to say this to everyone out there: the next generation of talent? They could be the winners in all this. They don’t have that "old way" of doing things that we’re carrying around. They are more willing to step into this new model and embrace the technology. And when we support and champion these new ideas, these newer folks might just be the ones who are leading our firms in the next few years.
The shift is clear: it's less about just processing numbers and more about being a true guide for our clients. It's an opportunity to build a firm that is resilient, forward-thinking, and honestly, more fulfilling for everyone involved.
Okay, so now that we've talked through the challenges and the opportunities, it's time to get down to the nuts and bolts. What can we actually do to build our firms into the kind of places we want them to be? It's time to put a plan into action, and let's think of this not as a one-time checklist but as a continuous cycle. We’ve broken this down into three main phases to help guide you through 2025.
This first phase is all about taking stock, getting real with your numbers, and setting the stage for a more focused year.
Data-Driven Client Review & Segmentation: It's time to stop flying blind.
Actionable Steps:
Gather Data: Pull client data, including profitability (revenue/cost), service usage, relationship length, and client persona alignment. Use your existing software to pull these, or create a simple spreadsheet.
Segment: Categorize your clients: Ideal Clients (high value, great fit), Legacy Clients (long-term, possible misalignment), Potential Clients (high value, needs development), and Not-a-Fit clients.
Identify Trends: Look for patterns, like which clients are most profitable, which services are under-utilized, and the most common client pain points.
Action: Create a simple spreadsheet using a scale system to measure, and then set aside a few hours to sort and analyze the results.
Detailed Ideal Client Persona: Getting clear on who you want to serve is key to saving your time and energy.
Actionable Steps:
Define Demographics: Specify industries, business size, and annual revenue range. Do you prefer individuals or businesses? Small businesses or larger enterprises? What tech do they use?
Establish Minimum Requirements: List non-negotiables for client relationships, such as data provision methods, communication styles, or tech capabilities. For example, they have to be a QuickBooks user.
Analyze Desired Engagement Level: Do they want proactive planning? Simple compliance? Are they engaged in the process or completely hands-off? And do they align with your firm’s capabilities and expertise?
Action: Create a one-page cheat sheet of your ideal client - and use it consistently. This is your new standard.
Service Model Audit and Pricing Adjustment: Are you getting paid what you’re worth? This is where we really take a hard look.
Actionable Steps:
Service Analysis: List out all your services. Rate profitability, required staff time, and if it fits into the future. Use a scale to rank each of these items.
Efficiency Review: Which services take the most time but aren’t necessarily profitable? Why? Look for bottlenecks, redundant steps, and outdated methods.
Pricing Evaluation: Do your prices reflect the value provided? Are some services priced too low? How has your cost changed? Are you accounting for your staff time, your overhead, and your expertise?
Action: Set up a task to review each of these, and then make a plan of what you’re keeping and what is not. This may take a full day for some, but it is needed.
Staffing Needs and Training Framework: It’s not just about filling seats; it's about building a well-rounded team and addressing the talent shortages in our market.
Actionable Steps:
Gap Analysis: Assess current skill sets and identify any gaps in your team’s capabilities.
Define New Roles: What skills are most needed for the future of your firm? Look for opportunities to leverage expertise in the market.
Develop Training Plans: Create opportunities for staff to develop consultative skills, client management strategies, and tech skills.
Outsourcing Options: Identify which tasks could be effectively delegated to virtual assistants, overseas partners, or outside specialists.
Action: Assign a team lead or project manager to create a plan and a timeline to complete it.
Now, let's put those changes into action, keeping the client experience and our own efficiency at the forefront:
Client Communication and Messaging Strategies (Tech-Driven): Ditch the old methods.
Actionable Steps:
Personalized Outreach: Leverage your CRM system to personalize messaging to specific segments based on your analysis.
Quick & Engaging Content: Use short videos, checklists, and templates over long emails and newsletters.
Offer Options: Provide clear call-to-action buttons to allow clients to opt into specific areas of interest or to schedule a meeting.
Action: Set aside a few hours a week to create a few of these short, engaging videos and use them and share them.
Implementation of New Service Model: Time to roll out the red carpet to change.
Actionable Steps:
Transparency: Clearly communicate the "why" behind pricing or process changes. No surprises. Explain that you had to make changes to the way things were being done and how the market has changed.
Transitional Support: Offer support to legacy clients, such as a phase-out plan or an introduction to other firms in the market, you can't keep everyone.
New Client Onboarding: Streamline the onboarding process for new clients, setting clear expectations on communication, data delivery, and service scope.
Action: Develop a plan for client communications and create a clear service contract and onboarding process.
AI Integration (Practical Application): Small, strategic, and scalable is the way to go here.
Actionable Steps:
Choose Initial Tasks: Begin with AI for simpler tasks, like writing client communication templates or generating outlines for client meetings, rather than doing it all at once.
Training: Train your team on prompting and refining AI results and ensure they understand the importance of human oversight.
Document Savings: Record your time and see what task you’ve used AI for to see if it’s making a difference.
Action: Set aside a few hours every two weeks to try one new task with AI. It’s a small step, but it’s the only way to get good at using them.
This last phase is about seeing how all these actions have made a difference and preparing for future improvements.
Mid-Year Tax and Planning Discussions (Targeted): Don’t wait until the last minute.
Actionable Steps:
Targeted Outreach: Reach out to clients identified through your data analysis (high-value clients) for mid-year tax and planning sessions.
Proactive Advice: Offer tailored advice based on your client's specific circumstances.
Gather Feedback: Ask what they need and what they want to make your firm more helpful.
Action: Create a list of who you’re targeting for this, and begin building out the schedule now.
Tracking Key Metrics and Feedback: It’s not just about doing the work; it’s about tracking how it’s going.
Actionable Steps:
Define KPIs: Develop Key Performance Indicators (KPIs) for client retention, revenue growth, profitability per client, staff utilization, and overall satisfaction scores.
Monthly Reviews: Review your KPIs monthly. This should include reviewing your financial performance, staff activity, client communication activity, and any feedback received.
Feedback Loop: Use this review process to identify areas that may need adjustment.
Action: Set up recurring reminders for these monthly reviews. You've got to be intentional with them and track them on paper and digital records.
Year-End Tax Preparation and Forward Planning: The year has passed, so how do we prepare for the future?
Actionable Steps:
Process Evaluation: Identify bottlenecks and areas that may still need improvement. What is working well? And what needs to be better.
Feedback Collection: Collect feedback on the onboarding process, communication, and all services from clients. This will provide context to the data you collect.
Planning: Begin your planning for the next year and continue to adapt to the rapidly changing industry.
Action: Begin collecting all of this in November so you can act in December, and you’ll be ready for the new year.
Alright, everyone, we’ve covered a lot today, and we know it can feel a bit overwhelming, but it’s time to see the bigger picture. It's all about recognizing that change is the name of the game in the tax and accounting world, and those who aren't willing to "evolve" and "pivot" will really find themselves struggling.
The old ways of doing business? They simply won’t cut it in 2025. And instead of being intimidated by all that's changing, we need to see this all as a real opportunity, a chance to really step up, do things differently, and build firms that we can all be proud of. It is an opportunity to make it better.
And it’s not just about keeping up. It’s about taking the lead. Remember that, as we’ve said, our clients need us now, maybe more than ever, as a guide through this increasingly complicated world. And we have the opportunity to leverage tools that can help us get there faster, and smarter than we used to be.
We have to use data to really understand our clients and use that information to provide more value, more guidance, and be more efficient in the way we do things. We have to leverage technology to help lighten the load, and there are some incredible tools out there ready to support you. We need to provide the space for our team to really grow, and to have that balance and the freedom that they need.
And that brings me to some of the tools that I'm sure you've been hearing about. If you’re still doing all the bookkeeping manually, now’s the time to look at automated bookkeeping solutions. And for our service-based clients, it's time to let go of all those manual spreadsheets for transactions and revenue tracking. You should check out tools like Saasant Transactions and PayTraQer. These are just a few examples of how technology can make these kinds of tasks much faster, easier, and more accurate so we have all the correct info. And this isn’t just about saving time; it's about freeing us up to work on the things that matter, the tax strategies and the advisory work that truly makes us valuable to our clients.
And remember, we can’t be afraid to adjust our pricing, communicate with our clients in new ways, and let go of the “old ways” and what doesn't work. When we do this right, we're not just surviving; we're setting ourselves up to thrive in the long run. And a better, more enjoyable way of doing things, and that’s what it's all about anyway.
So, what’s next? It’s time to act. It's time to take the first step and start implementing some of the strategies we have discussed today. Grab your client list, find your software and data, and begin to sort and see what you really have. It is also time to check out some of those SaaS tools, like Saasant and PayTraQer, and see how they can add to your current processes to allow you to do more with less work. This is our opportunity to decide who we are, what we’re doing, and what kind of firm we want to be. It’s time to build your own 2025 playbook and then begin to use it.
And remember, this is not a sprint – it’s a marathon. If it feels like you’re taking small steps? That’s ok. You have to be intentional and deliberate about what you’re doing. Every step you take towards being more proactive, more efficient, and more focused on your client relationships is a step in the right direction.
So with that, let’s stop thinking about all the what-ifs and start doing all the what’s next. Let's take all the knowledge we gained today and make 2025 your best year yet. We are all in this together, and you got this!