Still waiting on OP to tell us his or her process and how long it's taking him or her per engagement letter...
OK, got a sec? Some of you might find my business model interesting.
My current agreement terminates like yours every year when the taxes are filed or delivered for mail However this creates a huge time cost to us that reflects significantly in the bottom line.
We have a "backwards" appointment/preparation flow with our clients, and this allows us to speed through significant volume while not compromising accuracy or CS.
The client first drops off, uploads, or a combination of those.We don't give
initial appointments....
...or any appointments, until the tax return is nearly completed. If a client situation is so complicated to where one is needed, we'll file an extension and provide an
initial appointment in the off season.
We have 2 part-time data assistants. They download the docs to our drives, sort the data, and enter most of it into the preparation software.
Then it goes to my wife, who is not just your "token pretty face" but is a sharp and dedicated business partner, tax preparer, and has taken tax preparation, payroll, sales tax, and accounting classes for her Bachelors degree (completed), and has been helping me for several years. She's a tiger. She double checks the data entry, enters the more complex items like D, C, and E, and shakes the client down for needed data.
Than it goes to me where I triple check the entry, review the return, and put the client on the "ready for review list".
The client then gets the option of a live review with me (30 minute appointment) or an electronic review and signature with an optional phone call. Clients LOVE the live review prior to their taxes being finalized and it's a 4th check on the return for accuracy that includes the client. This is where we talk about all of the clients tax concerns (WH, ES Taxes, selling that rental, etc) and, as we all know, it's "me" that they are paying for.
I have a third and giant monitor (facing mostly toward them) for me to briefly present and explain their taxes (and check the account number for their refund). My office is particularly clean and not cluttered. I have big and cushy office chairs for them to sit in.
So I'm (at most!) 40 minutes invested on $300-$600 tax returns. They are accurate and the client is happy. It's a tight operation. We're not playing around. Our goal is to do about 800+ of them a year like that, among the other services that we offer.
The pre-signed, one year engagement agreement throws a big wrench into the entire process!Oh the problems.
It's more work than the the tax prep.
Getting the spouse to coordinate a signing is like pulling teeth in some cases. What's her email? He doesn't answer the email, she cant figure out the RightSignature, he forgets to sign the agreement with the organizer, or to get her signature. Now he has to come in twice? Wait - this spreadsheet says one or both of them didn't sign and the deadline is approaching. Wait again, who forgot to update this on the spreadsheet and we asked them twice and held up the preparation of the return? I could go on and on.
Tracking who has signed and who hasn't takes more effort than the tax return itself. My data people cant seem to get it right, and I have my wife so task-saturated, I don't want to charge her with this too.
If I could go with a running agreement, my system would be so much more simple and streamlined and the practice would be more profitable.