Busy season for accountants: when it takes place and tips for success

During a few months each year, the accounting world kicks into a collective frenzy. Firms are inundated with requests, the work piles up, and deadlines loom large. In the industry, this period is known as busy season — and as the name suggests, things can get pretty manic. Thankfully, it doesn’t have to be that way. 

In this article, we’ll explain everything you need to know about accounting busy season: what it entails, when it occurs, and — most importantly — how to survive it. We wrote this piece with the help of Andrea MacDonald, a CPA and firm owner with more than 20 years of experience. Read on her for her expert insights! 

What is busy season?

Accounting busy season is a period when accountants handle a huge spike in volume due to various financial reporting requirements. It usually occurs during the lead-up to key financial deadlines, such as the tax-filing season or the year-end financial reporting period. Generally, busy season accounting covers the following key areas:

• Tax preparation
• Audit
• Year-end reporting

When busy season for accountants starts and ends

Busy season is a broad term that encompasses different timeframes associated with different accounting processes. We’ll explore these in detail below.

1. Tax season

In the US, tax season kicks off in January and culminates on April 15, which is the IRS deadline for filing individual tax returns. If the deadline falls on the weekend or a legal holiday, it’s delayed until the next business day.

But that’s not all. In the US, there’s a second tax season, as Andrea MacDonald points out. “For accountants who offer tax services, there are two busy seasons — January through April, and then again, September through October.” The second busy season covers the October 15 tax-filing extension deadline.  

2. Audit season

Audit season often coincides with tax season, with preparations beginning in the new year and continuing throughout the first quarter. Because auditing involves detailed examination of financial statements and records, starting early in the year gives auditors time to review the previous year’s financial performance and provide accurate assessments.

3. Year-end reporting season

In the US, the fiscal year can vary from company to company, but many choose to align their fiscal year with the calendar year. Once a publicly traded company’s fiscal year ends, they typically have between 60 and 90 days to file their annual earnings reports with the SEC. 

So when does the year-end reporting season typically kick in? According to Andrea MacDonald, “The end of the year is busy with wrapping up the accounting and bookkeeping. January is busy with preparing and filing W2s and 1099s.”

4. Industries and specializations

Busy seasons can also vary within specific industries and specializations. For example, in the retail sector, the holiday season triggers a surge in financial activity, resulting in a spike in accounting work. Similarly, industries with specific regulatory requirements, such as healthcare or real estate, may have unique busy season timelines.

How many hours do accountants work during busy season?

Accounting busy season is well known for its grueling hours, with the average accountant working anywhere between 50 to 80 hours per week. In extreme cases, partners and senior CPAs have reported working up to 100 hours per week. 

In recent years, firms have started to focus more on the well-being of their staff and providing a better work-life balance. Nevertheless, busy season remains busy for one simple reason: client demand. With this in mind, the best way to reduce working hours during busy season is to manage your capacity as effectively as possible. 

“If you are building a firm that prioritizes work-life balance and mental health, you don’t want your staff working 12-15 hour days,” explains Andrea MacDonald. “So figuring out a way to keep the workflow steady and consistent is a high priority.” 

Tips to help accountants during busy season

With the right strategies and tools, it’s possible to not only survive but also thrive during busy season. Here are some tips to help you along the way:

1. Prioritize tasks effectively

With so many tasks to juggle, you need to know what needs doing first. This makes effective prioritization crucial during busy season. Here’s some advice from CPA Andrea MacDonald on how to cut through the noise and get stuff done: 

“Each morning, choose three things that you will focus on that day. That way, if you get distracted and pulled in different directions, you can ground yourself by focusing back on those three things.”

There are tons of tools out there that can help you prioritize, assign, and track tasks. You can use dedicated task management tools like Asana or Trello. Alternatively, you can go for a practice management platform that includes task management capabilities, like TaxDome.

2. Leverage workflow automation tools

Whether it’s emailing new clients or sending out invoices, accounting involves a lot of repetitive tasks. Thanks to automation tools, you no longer have to waste time performing these tasks manually. 

Accountants have plenty of automation tools to choose from. Platforms like QuickBooks and Xero allow you to automate the actual accounting process, covering routine data entry and reconciliation tasks. Then there are practice management platforms like TaxDome that automate entire accounting workflows, including all:

• Client communications
• Task management
• Data and document gathering
• Document management
• Invoicing and payments

Here’s what an automated tax preparation workflow looks like in TaxDome. You can see the stages of the process and where each client is in that pipeline. 

Automating your tax return process allows you to take on more clients during busy season. Moreover, it enables you to keep your clients in the loop with automated messages every step of the way — as Andrea MacDonald points out:

“We are using tools like TaxDome to allow us to automate touchpoints that make sense to automate (like periodic client status updates), freeing us up to spend more time on the touchpoints that require more personal attention.”

3. Be realistic about how much work you can take on

If you’re a freelance accountant or a firm owner, it can be tempting to say yes to anyone who needs your services. But remember — there are only so many hours in the day to serve them all. No wonder so many accountants end up working weekends during busy season, as you can see from the chart below.

If you take on too much work, it could easily backfire. For example, you might:

• Find yourself overworked, stressed, and burnt out
• Fail to meet deadlines — and disappoint clients as a result
• Complete the work but to a poor standard

None of these outcomes are good for your business or well-being. So instead of saying yes to everyone, be pragmatic about how much work you can take on.

4. Dip into the freelance market for temporary support

Alternatively, you can turn to the freelance accounting market to bolster your ranks during busy season. This will allow you to scale up your accounting capacity without having to commit to long-term hiring decisions. 

Check out platforms like Upwork, Fiverr and Freelancer to access a global talent pool of freelance accountants and tax professionals.

5. Collaborate, communicate, and delegate

To come through busy season unscathed, you and your colleagues will need to work as a team. That means fostering a collaborative environment where open communication is prioritized. Let’s look at some practical ways you can do this:

• Delegate tasks appropriately to leverage the strengths of team members
• Use a task-management tool that lets everyone see who’s working on what
• Use an instant messaging platform like Slack to help your team communicate effectively

In the chaos of busy season, knowing which tasks to delegate can be a challenge. To provide clarity, Andrea MacDonald recommends getting everything down on paper. 

“When I start feeling overwhelmed with all of the to-dos and gotta-dos rolling around in my head, I write them down,” she explains. “Once they are written down, I can more easily prioritize. It also allows me to spot the tasks that I can delegate.”

6. Stay informed about tax law changes

To ensure that you are always on the right side of regulations, you’ll need to stay up to date with the latest changes. Here are some great places to stay informed:

• IRS Newswire: subscribe to get tax law news right from the source
• AICPA CPA Insider: a weekly news bulletin from the American Institute of Professional Accountants
• Accounting Today: subscribe for the latest tax news, insights and tools
• Deloitte Tax Alerts: subscribe to get tax alerts straight to your inbox
• EY Tax Alerts: choose which tax topics you want to hear about and how often
• KPMG TaxNewsFlash: get tax reports and updates in the US
• PWC Insights: a daily summary of all tax, finance and regulatory news

7. Experiment with time management techniques

For most people, the default approach to handling a high volume of work is to plough through long hours with few breaks. But this strategy can be counterproductive. Most people simply can’t focus for hours on end, leading to mistakes and burnout.

Instead of marathon work sessions, you could experiment with alternative time management strategies, like the Pomodoro Technique. It involves focusing on a single task for 25 minutes, then taking a five-minute break to regain focus. You repeat this cycle four times before taking a longer break. 

8. Prioritize your mental and physical well-being

The long hours and stress that come with accounting busy season can take a toll on your mental and physical health. The screenshot below taken from the r/Accounting subreddit portrays just how brutal busy season can be:

Ultimately, everyone deserves to maintain an acceptable work-life balance. That can mean different things to different people, so the key thing is to know yourself and your limits — and to not push yourself beyond them. It’s also a good idea to set boundaries between your work life and personal life, as this busy-season veteran points out on Reddit:

Andrea MacDonald believes that some level of stress is inevitable during busy season, but that stress can be mitigated by streamlining operational processes. 

“There will be stress – there is no way around that. Dealing with other people’s money is inherently stressful,” she explains. “The key for firm owners is to build workflows and processes that smooth out the work, to eliminate those peaks and valleys that traditional firms encounter.”

9. Continuous learning

In a constantly evolving industry, continuous learning is the key to staying ahead of the curve. If you’re a CPA, a minimum of 40 hours of continuous professional education (CPE) each year is essential to keep your license. Here are some suggestions for continuous learning:

• Invest in your professional development by taking online courses or certifications
• Explore new accounting software and tools to enhance efficiency
• Join industry associations for networking and access to resources

10. Client communication

Clear communication with clients is always necessary, but it’s especially important during busy season. Keeping clients in the loop not only helps provide a better service but also heads off any potential questions they may have, which can be time-consuming to respond to. 

Here are some tips for getting client communication right: 

• Be upfront with clients about progress and potential delays
• Try to preempt what clients might need to know — and tell them before they ask
• Set clear expectations regarding response times and deliverables
• Develop templates for different types of communication (welcome emails, updates, etc.)
• Use a tool that automates client communication

11. Maintain a support system

Support is important during challenging times, especially if you are a junior accountant. Make sure you reach out to more experienced colleagues for advice and guidance during busy season. Here are some practical suggestions: 

• Get a professional mentor who’s been there and done it
• Connect with peers to share insights and strategies
• If you’re a firm owner, check in with your staff regularly to see how you can support them

12. Review and reflect

It might feel like busy season will last forever, but things will eventually calm down. In addition to enjoying the relative peace, it’s important to review how it went and identify areas where you and your team can improve. Here are some questions you can ask to help with that process:

• What strategies worked well, and what didn’t?
• What were the major pain points and bottlenecks in our process, and how could we remove them?
• What role did technology play in simplifying our processes, and where could it be improved?

The key here is to approach next year’s busy season in a better position, allowing you to reduce stress and serve clients faster.

The bottom line

Busy season is traditionally a challenging time for accountants. But with the right strategies, mindset, and technology, there’s no reason to dread it. By embracing the tips we’ve outlined in this guide, you can provide your clients with the best possible service without sacrificing your mental and physical well-being. 

Ultimately, the key to making busy season easier is the right tech. With TaxDome, you can automate repetitive tasks, improve team collaboration, and provide an incredible client experience. To see how TaxDome can make your tax season a breeze, request a demo today.