Preparing For Year-End, Part 2: Take Steps Now To Minimize Year-End Headaches

By Thomas G. Stephens, Jr., CPA, CITP

INTRODUCTION

In Part I of this two-part series, we examined steps that accountants in private industry, governmental, and not-for-profit environments should take before year-end to minimize the headaches and hassles associated with year-end processes.   In Part II, we will focus on steps that accountants in public practice can take to increase year-end efficiencies and improve overall client satisfaction.

Year-end steps for accountants in public practice

Following is a checklist of steps that accountants working in public accounting firms should consider taking before December 31 in order to minimize year-end headaches and hassles.

Confirm your relationships with your clients. If engagement letters are required, send them now.  If oral agreements are sufficient, obtain them now and document them in your working papers.  Whether agreements are written or verbal, be sure that details such as services to be performed, deliverables, due dates, fees, and staff assignments are adequately and sufficiently addressed so as to avoid any potential misunderstandings with your clients.

Prepare work plans for clients. Prepare sufficiently detailed work plans for clients to ensure that all of their needs are addressed. Detail tasks to be performed, staff assignments, due dates, management responsibilities, and other pertinent information in the work plan.  Of course, throughout the next few months periodically compare the plan to work completed to ensure that no critical task or procedure is overlooked. 

Review and organize files, including purging documents no longer necessary. Now is the time to clean up and clean out your office. Organize and file any documents – electronic or paper – that are in your office.  Rid you desk and office of unnecessary files, papers, books, magazines, and clutter that can impair your productivity for the upcoming “busy” season.  Ensure that documents that have exceeded their life cycles according to your retention policy are purged in accordance with your retention policy.

 

Ensure you have an adequate supply of year-end forms and office supplies. Be sure that you will have enough year-end forms such as Forms W-2 and 1099 to handle your anticipated filing volume.  Also ensure that you have an adequate supply of columnar pads, toner cartridges, and paper for the season, or at least have vendors lined up to provide such supplies on short notice.

 

Rid your office of any technology headaches.  Ensure that all hardware and software is properly functioning.  Fix any problems that stand in the way of optimal work processes.  Perhaps that means downloading updated drivers for peripherals; perhaps that means removing and re-installing software; perhaps that means adding memory to existing computers.  Notice that each of these are minor “tweaks,” not major overhauls. Remember, all you sell to your clients is your time and expertise and anything that bottlenecks your ability to deliver these impacts your bottom line.  Take steps now to correct any technology issues in your office.   

Verify your ability to restore backup files in the event of data loss. While most people think “it could never happen to me,” the fact is many businesses – including accounting firms – do suffer data losses every year.  Reasons for these losses are varied – drive failures, viruses, accidental deletion of data or overwriting of files, and malicious employee conduct are among the most common.  Regardless of the reason, not being able to restore data from a backup spells d-i-s-a-s-t-e-r for the public accounting firm.  Ensure now that your backup procedures are proper for your firm and that you can restore data from your backup files in the event of an emergency.  Remember, until you have tested your restore capabilities, you really haven’t performed a backup!

Update your software. Ensure that you have the latest updates to all of your key software applications.  Verify that Microsoft Windows and Office have the latest service packs and patches.  Ensure that your tax, write-up, engagement, document management, working paper, and other critical applications are updated for 2008 and that appropriate procedures are in place to ensure their update throughout the upcoming busy season.

Make sure your staff members are suitably trained. The only constant we have is change. Tax laws, accounting and auditing standards, and technology changes mean that continual training efforts are required to ensure both compliance and productivity. Verify now that staff members understand the issues and requirements in front of them with respect to tax, accounting, and auditing standards and regulations.  Further, ensure that staff members have adequate training in the area of technology so that they are able to efficiently and productively leverage the investment in information technology. 

SUMMARY

Investing a little time now can pay off big over the next few months for those involved in public accounting practices.  Ensure that your firm is ready for the upcoming busy season by addressing a few details now so that you optimize workflow, efficiency, client satisfaction, and, ultimately, firm profitability. Remember, now is not the time for major changes or upheavals; rather, now is the time to fine-tune your existing tools and procedures for best performance.   

Best wishes to you and yours for a happy holiday season and a most prosperous 2008!

Mr. Stephens is a shareholder in K2 Enterprises, where he develops and presents technology-related continuing professional education programs to accounting and finance professionals across the United States.  You may reach him at tommy@k2e.com.

 

The views and opinions expressed in this column are those of the author and do not necessarily reflect the opinions of Microsoft.