Project Management for CPAs
by Peter Harris CPA, CMA
Tax season is almost here! How many tax returns will you and other members of your team take on during your busy season? How many hours are you planning to spend on each project and at what billing rate? Who will be assigned to prepare the tax returns? Who will review them? When are they due? Which ones need to be extended? How do you keep all this information available on a daily basis?
These are just a few of the very familiar questions most CPAs are faced with every year. I am writing this article to share with you how project management software can assist you with answering these questions. Many tax software companies now offer a suite of products that integrate customer databases, billing, tax preparation, fixed assets and, last but not least, project management. The project management module oftentimes is not even considered. However, when you start to take a look at it, it may be the most important module of them all.
Imagine each member of your team knowing exactly what project he or she has open at any given time and when this project must be completed. All this information can be summarized on each workstation. No more relying on walking around the office and barging in on people, reminding everybody of what has to go out today. You can accomplish the same result by setting up projects that integrate with your tax preparation and billing software. Who the partner in charge is, which staff, reviewer, etc. can be communicated effectively without holding meetings all the time to discuss who is going to do what and by when.
You can always know what stage a project is in by glancing at your project management screen. For example, is the tax return in preparation, in review, ready for assembly, waiting to be e-filed, or is it complete? At extension time, you can produce a list of returns for extension with no extra effort. When your client calls, you can tell him or her exactly what is going on! Your client will appreciate the quick feedback.
Budgeting is always a challenge in tax preparation. Many times members of your team may be unaware how much time is estimated to get a project done. You can communicate this time budget on each project so no one is shocked when the work in progress is higher than expected. You can have this prior year information form the basis of your budget in the current year, and do this automatically. This can form a starting point for developing projections on revenues and aid in adjusting billing rates firm-wide.
Using software to manage projects can save time and money, among other things. Other benefits are:
• Improved workflow
• Monitor due dates
• Efficient communication
• Consistency
• Faster response time
• Visual summary of all open work
• Budgeting
Consider checking out project management software to assist you in your quest to better serve your clients.
Peter Harris, CPA, CMA, is partner in the firm of Johnson, Harris & Goff, PLLC. He is a member of the ASCPA Information Technology Steering Committee.
AZ CPA – November 2008
