Are your firm’s profit margins overly reliant on seasonal 1040s? Here’s a glimpse at how advisory services can solve that imbalance—and how SurePrep can help. 

Why tax practices are looking beyond preparation 

Tax preparation has been the backbone of the accounting profession for years. However, the needs of clients are evolving, and the industry is starting to adapt with them. According to an Intuit Accountants study, 83% of taxpayers want year-round tax advice in addition to filing their annual return. 79% indicated that they would be willing to pay extra for these services. 

This trendline has set off a lightbulb in the heads of firm leaders. They envision a profitable business model that delivers a wider breadth of services delivered to a narrower clientele. 

In a 2022 survey from Spotlight Reporting, nearly 80% of respondents indicated that they planned on establishing or expanding their advisory offerings in the future. But according to the study, “Lack of time/headspace” was one of the many roadblocks preventing firms from taking action. 

So, how can practices make room for advisory growth with tax prep obligations standing in the way? You may not be able to hire your desired talent in today’s staffing market. But you can get the same results with the right automation in place. Hint: SurePrep streamlines tax preparation and creates room for more profitable ventures. 

How SurePrep expedites 1040 turnaround 

Although many software vendors offer their own 1040 automation solutions, not all tax technology is created equal. SurePrep technology drives workflow efficiency with: 

  • AI-powered automation 
  • Robust workpaper tools 
  • Better client service than any other solution on the market 

The extra bandwidth created by those efficiency gains enables SurePrep firms to concentrate on advisory services, generate a steadier influx of revenue throughout the year, and develop longer, more constructive client relationships. Let’s take a closer look at the SurePrep difference. 

Automation 

1040SCAN leads the tax preparation space in 1040 automation, recognizing 4–7 times as many documents as alternative scan-and populate solutions. This includes Grantor Letters, 1098s, and State K-1s. 

1040SCAN also extracts data from minor fields in source documents that other scan-and-populate solutions can’t read, such as margin interest, investment fees, and foreign income. This leaves preparers with less data entry, less data verification, and fewer workpapers to manually index. 

Did you know? SurePrep solutions reduced firms’ preparation time by an average of 62%, according to a 2021 internal SurePrep study.

Reduced review time 

Since partners and managers bill time at a higher rate than preparers, review tends to be the most expensive phase of the 1040 process. SPbinder makes review faster and easier with 1040-specific tools that help preparers create detailed, thoroughly annotated workpapers. 

Did you know? Firms that use SPbinder with 1040SCAN were able to reduce review time by an average of 29%, according to a 2021 internal SurePrep study. 

With SPbinder, preparers are equipped with tick marks, annotations, collaborative note threads, OCR calculator tape, and hyperlinked cross referencing that can be applied across all file types. On the reviewer end, SPbinder provides up to four role-based sign-off levels so partners and managers can easily track changes. SPbinder’s digital leadsheets also gather all final amounts into one place so users can perform a seamless top-down review. 

Paving your path as an advisory practice 

With new bandwidth, your firm can be more than just tax preparers. You have the opportunity to position yourself as a trusted financial partner, offering comprehensive guidance that addresses clients’ broader financial goals and challenges. 

This shift allows tax preparers to focus on higher-value activities relevant to their expertise, like complex tax strategy, financial planning, and client advisory services. By eliminating repetitive work, professionals can dedicate more time to analyzing data, identifying tax-saving opportunities, and providing hands-on guidance to clients. 

The personalized nature of advisory services increases client satisfaction by demonstrating the firm’s commitment to their success. Ultimately, this win-win scenario results in loyal clients who view their accountants as indispensable partners in their financial journey. 

Is SurePrep right for your firm?

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