6 Costly Staffing Mistakes Accounting Firms Must Avoid During Tax Season

As the busy Self Assessment season nears, accountants are bracing themselves for the annual rush of late submissions, complex returns, and long days at the office. Instead of relaxing with friends and family during the festive season, many find themselves glued to their desks, trying to keep up with the mountain of work.

Sound familiar? It’s a challenge every accounting firm faces, but the good news is, many of the biggest tax season headaches can be avoided.

Often, it comes down to how you manage your team. Making the wrong staffing decisions can cost you time, money, and even clients. But with the right approach, you can avoid these common mistakes, ease the pressure, and sail through the season stress-free.

Here are the six costly staffing mistakes during tax season that accounting firms like yours must avoid to make it through the busy period without breaking a sweat. Let’s dive in!

1. Underestimating the Volume of Work

One of the most common mistakes accounting firms make is underestimating just how much work will pour in during tax season. It’s easy to overlook those late-comers who rush to file at the last minute, but when dozens—or even hundreds—of clients pile up, it can quickly overwhelm your team.

The cost: Missed deadlines, errors, and burnt-out staff.

Avoid it: Start planning well ahead of time. Assess your workload based on past years and factor in any new clients. Consider hiring temporary staff or outsourcing tax preparation services to manage the surge in demand.

2. Not Having a Flexible Staffing Plan

A rigid staffing plan can cause major headaches during tax season. Many firms stick to their usual staffing levels and schedules, but when clients need a spike, so must your resources. Tax season is unpredictable, and failing to adjust staffing levels accordingly can lead to bottlenecks.

The cost: Delays, reduced productivity, and increased stress for your team.

Avoid it: Build a flexible plan to support efficient staffing for tax season – one that allows you to scale your team up or down as needed. Having part-time or contract workers on standby or outsourcing tax returns to handle excess work can give you the flexibility to adapt quickly.

3. Overworking Your Core Team

It’s tempting to load up your core team with as much work as possible to avoid the hassle of bringing in temporary help. However, overloading your permanent staff can result in errors, fatigue, and even burnout. When staff are stretched too thin, the quality of work suffers, and your team’s morale can take a hit.

The cost: High error rates, diminished client satisfaction, and potential staff turnover.

Avoid it: Spread the workload more evenly by bringing in seasonal staffing for tax firms or outsourcing certain tasks. Free up your core team for high-value tasks that require their expertise, and let others handle routine work like data entry and basic tax return preparation.

4. Failing to Train Temporary Staff Properly

Temporary or seasonal staff can be a lifesaver during tax season, but only if they are properly trained. Firms often bring in temporary staff without giving them adequate training on their systems, processes, and expectations. The result? More time spent correcting mistakes than actually getting work done.

The cost: Increased errors, inefficiency, and lost time.

Avoid it: Take the time to train temporary staff thoroughly. Make sure they understand your software, processes, and the level of quality you expect. Alternatively, a reliable tax outsourcing provider can offer well-trained teams who can hit the ground running without requiring intensive training.

5. Ignoring Staff Well-being

During tax season, it’s easy to focus on deadlines and output, but ignoring your team’s well-being can backfire. Long hours and intense workloads can take a toll on staff morale and mental health, leading to decreased productivity, increased sick days, and, ultimately, staff attrition.

The cost: Reduced productivity, increased absenteeism, and high staff turnover.

Avoid it: Encourage work-life balance even during busy periods. Ensure that staff have the support they need and consider rotating shifts to give your team time to recharge. Make outsourcing a crucial part of your tax season employee management strategy, as it can help relieve some of the pressure on your in-house team, giving them breathing room to perform at their best.

6. Not Outsourcing When You Need to

Many accounting firms hesitate to outsource, fearing it may compromise control or quality. But trying to do everything in-house can leave your team overwhelmed, especially during tax season. Failing to outsource when you’re short on staff or struggling with workload management is a major mistake that could cost you in the long run.

The cost: Missed deadlines, errors, and dissatisfied clients.

Avoid it: Outsourcing personal tax returns allows you to delegate routine or time-consuming tasks to a team of experts, freeing up your in-house staff. Many firms find that outsourcing tax preparation or back-office work during tax season significantly reduces stress and boosts productivity.

The Role of Outsourcing in a Stress-Free Tax Season

Outsourcing isn’t just about shifting work elsewhere—it’s about strategic delegation. By outsourcing routine tasks like Self Assessment tax returns, payroll, or bookkeeping, your in-house team can focus on higher-value services, like advising clients and resolving complex tax issues.

Moreover, outsourcing providers are often well-versed in managing high workloads and tight deadlines, ensuring that your clients’ tax returns are handled with accuracy and efficiency. This can help your firm meet client demands while avoiding staff burnout, errors, and late filings.

Conclusion: Plan Smart, Work Smart

Tax season doesn’t have to be a nightmare for accounting firms. By avoiding these seven staffing mistakes and incorporating outsourcing into your strategy, you can manage your workload more effectively, improve team morale, and meet deadlines without stress. With the right planning, the upcoming tax season can be smoother—and more successful—than ever.

Want to know how QX can support your firm with tax preparation? Call us at +44 208 146 0808 or drop an email at [email protected] to connect with an expert.