As tax season approaches, CPA firms face unique, but not new challenges. Proper preparation is key to maximizing efficiency, staying compliant and delivering exceptional client service. In this post, we’ll cover four crucial focus areas to help your firm succeed: compliance reviews, security assessments, scaling for temporary staffing and evaluating offshoring practices.
1. Review Compliance Requirements
Tax season isn’t just about processing returns—it’s also about ensuring compliance with regulations. For mid-sized firms, staying aligned with requirements from the IRS, FTC Safeguards Rule and state-specific data protection laws is crucial to avoid potential risks.
Key Requirements to Focus On:
- IRS Publication 4557: Follow best practices for safeguarding taxpayer data, including implementing physical, technical and administrative security measures.
- FTC Safeguards Rule: Ensure your firm is in compliance with the GLBA FTC Safeguards Rule, which focuses on how customer data is protected. This includes data encryption, employee training and regular risk assessments.
- State-specific Data Protection Laws: Review data protection requirements for the states in which you operate, especially concerning breach notifications and data retention policies.
- Data Retention Policies: Make sure you comply with federal and state regulations on data retention, including secure disposal of data when no longer needed.
- Privacy Practices: Keep your privacy policies current to align with both regulatory requirements and client expectations.
- Written Information Security Plans (WISPs): Update your WISP to reflect changes in technology, staffing, or regulatory needs. Align with industry frameworks like CISv8 to stay prepared for increased scrutiny during tax season.
2. Conduct a Security Review
Data security is key during tax season, given the increased exchange of sensitive client information. Conduct a thorough security review to identify and address vulnerabilities, focusing on:
- Endpoint Protection: Ensure that all devices are secure against threats.
- Software Patching: Keep all software updated to avoid vulnerabilities.
- Email Security: Implement measures to prevent phishing and other email-based attacks.
- Network Safeguards: Optimize cloud infrastructure settings (e.g., Azure Virtual Desktop) to handle increased traffic securely.
- Staff Training: Ensure that all staff members understand security best practices to avoid breaches, which could be both financially and reputationally damaging.
3. Plan for Temporary Staffing Needs
During busy season, many firms need to scale their workforce temporarily. Efficiently onboarding seasonal hires is crucial to managing the increased workload, whether they are working on-site or remotely.
- Technology Infrastructure: Assess whether your current infrastructure can support temporary staff.
- Virtual Desktops: Use solutions like Azure Virtual Desktop for secure, flexible access, making it easier to onboard temporary staff.
- Licensing Needs: Review licensing to ensure it can accommodate the additional users without delays.
4. Review Offshoring Security & Growth
If your firm already uses offshoring, it’s essential to evaluate the security and scalability of these arrangements.
- Security Measures: Review data security protocols to ensure they meet current standards, including encryption, access controls and staff training.
- Scalability: Evaluate whether your offshoring team has the capacity and training to handle increased workloads during peak tax season. A proactive approach can help ensure smooth workflows and allow your in-house team to focus on higher-value client services.
Get Ready Before the Rush Begins
Preparing for tax season is about more than keeping up with returns. It means ensuring that your compliance, security, staffing and offshoring strategies are all ready for success. By addressing these areas now, your firm can avoid common pitfalls and operate efficiently, even during peak workload periods.
How Netgain Can Help
Netgain specializes in helping mid-sized CPA firms navigate these complexities. From infrastructure optimization to compliance and security reviews, we’re here to help you be ready for the busy season ahead.
Ready to Prepare for Tax Season?
Netgain offers tailored solutions for CPA firms of up to 500 employees facing the upcoming busy tax season. If your firm needs assistance with compliance, security reviews or scaling your technology, contact us today to ensure you’re prepared for the rush.