With the holidays fast approaching, most accounting professionals are looking to much-needed time off as well as year-end reconciliations, employee vacations, and tax preparation. As such, every firm needs to prepare and keep in mind what will make operations stress-free and address bottlenecks.
The first thing every accounting firm should review is how it collects the information it needs from clients. Sending multiple reminders to clients during tax season can derail the entire workflow.
Therefore, firms must review the total time they spend collecting data. Depending on that, they must analyze their data-sharing platforms and tools. For instance, if you still use the conventional method of emailing, consider adopting an online storage solution for real-time sharing. You can also switch to document management or practice management tools that send automated client reminders.
Then there’s the IRS, which has decided to transition from the Filing Information Returns Electronically (FIRE) system to the Information Returns Intake System (IRIS) and has instructed everyone to make the transition before the 2027 tax season. Nov. 19 will be the last date to file any information through the FIRE system.
As a major update for all accounting firms, they must make the transition before the holidays to avoid last-minute panic during tax season. Accountants will need time to adapt to the new web-based filing system. Moreover, firms must check the integrations with current workflows and accounting solutions.
The IRS made several changes for 2026 filing and tax-centric firms must track these changes and ensure they incorporate them before the 2027 tax season. For example, there are changes made to boxes 9 and 14a on the 2026 forms W-2, W-2AS, W-2GU, W-2VI, and W-2c.
Before the holiday season, your firm should review applicable federal and state tax changes, confirm preparer credentials, complete continuing education requirements, and verify that tax software vendors are preparing the necessary updates.
Outside of what the IRS is doing, another thing you can always work to take control of is data security. With the rise of AI-based threats, the cyber threat landscape is evolving rapidly.
Therefore, before the holidays, firms must audit the security posture for vulnerabilities. Check whether in-house tools and protocols can counter real-time attacks.
In addition, now is the time to update your Written Information Security Plan (WISP) according to IRS guidelines and your accounting process. Review each employee’s access permissions and adjust them to match their roles in the organization. Accounting firms should also establish a clear incident response plan for phishing attempts, ransomware incidents, compromised credentials, and suspected data theft.
Another often overlooked piece of year-end planning is workflows. Identify which part of the process/es, such as data collection and tax preparation, consumes the most time. Identify the causes of delays and develop a strategy to reduce bottlenecks.
The disruption could come from the professional or the tool used. For instance, an accountant might send the engagement letter on time, but the client delays signing it because there is no proper follow-up.
Consider onboarding workflow management tools that offer enhanced visibility into the entire operation. These tools integrate with your main accounting software to automate workflow status updates, client follow-ups, and deadline reminders.
Now is also the best time to review your current tech stack. Once you have identified the needed upgrades, you can implement them easily with a smaller workforce. For instance, you should inventory all technological tools used in the office and check for tool sprawl.
Categorize tools by priority and function, then dispose of outdated or duplicate ones. Another critical thing to check is integrations. For automated, error-free workflows, each tool must integrate seamlessly.
You must also assess whether the current IT setup delivers optimal performance. Analyze the total downtime and IT issues your team has faced in the past year. If the number is significant, consider a better alternative. For instance, if you still install accounting applications, such as QuickBooks on local workstations, consider a cloud hosting service for 24/7 remote access to QuickBooks.
As years progress, clients want a firm that can support their strategic decisions and financial planning. Consequently, client advisory services has been growing steadily and currently accounts for 61% of a firm’s revenue.
Firms still offering traditional accounting services should consider shifting toward more advisory roles. However, launching niche services like CAS requires extensive research, planning, and preparation.
You must conduct in-house training programs to upskill accountants. Before investing in client acquisition, firms must pitch the services to long-term clients. If your current workload does not support launching a new service, you must create strategies for expansion.
Firms that plan for 2027 before the holiday season give themselves a valuable head start over competitors. Take a well-rounded approach and analyze every aspect, including workforce productivity, client management, data collection, and information security. Identify problems early and fix them before the holidays to ensure a successful, profitable 2027.
ABOUT THE AUTHOR:
Dr. Sangeeta Chhabra, co-founder and executive director of Ace Cloud Hosting, is a leader and innovative entrepreneur with more than 20 years of experience in the IT sector. She has positioned the company as a leading global provider of IT and managed cloud services, celebrated for its QuickBooks hosting tailored for the accounting sector, managed security services, Desktop as a Service, and public cloud offerings for SMBs and enterprises. Under her leadership, Ace Cloud Hosting was honored as the Best Outsourced Technology Provider at the CPA Practice Advisor Readers’ Choice Awards 2023, among other accolades. Beyond her professional successes, Dr. Chhabra is a passionate advocate for women’s empowerment and is committed to fostering an inclusive environment at Ace Cloud Hosting.
Photo credit: Elen-Nika/Freepik
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