What to Do When Asked for Tax Help as a Bookkeeper
As a bookkeeper who avoids handling taxes (like many of my peers), I’m often approached by current clients and prospects seeking recommendations for tax services. Unfortunately, I’m at a loss for answers. Simply telling them to “figure it out” (albeit phrased more politely) seems like I’m abandoning them to their fate.
Being relatively new in my role, I’m eager to hear from a tax accountant who can advise on making my statements more tax-friendly. However, I’m cautious about recommending someone since I haven’t personally vetted the quality of others’ work.
So, I’m reaching out to fellow bookkeepers who don’t deal with taxes: How do you respond when someone requests tax assistance? Do you have trusted referrals? Is this a relationship worth cultivating? Do you partner with a local accountant or firm? Or do you direct them to use services like TurboTax?
I’d love to hear your perspectives on this matter.
Thank you!
One response
When you’re a bookkeeper and someone asks for tax help, it’s important to have a strategy for providing guidance without stepping outside your professional boundaries. Here’s a detailed approach to managing such requests:
Step 1: Be Honest About Your Role
Start by clearly communicating your role and expertise:
– Acknowledge Your Boundaries: Explain to your clients that your expertise is in Bookkeeping, which primarily focuses on maintaining accurate and organized financial records. Clarify that you do not provide tax preparation or tax advisory services.
– Provide Reassurance: Let them know that while you don’t handle taxes, you can help ensure their financial records are well-prepared for tax season, which makes the process smoother for them and their tax professional.
Step 2: Establish a Referral Network
Build and maintain a network of professionals you trust:
– Research Local Tax Professionals: Spend some time researching local tax accountants or tax firms. Look for ones with good reputations, certifications, and positive client feedback.
– Meet and Vet Potential Partners: Arrange meetings with a few tax professionals to understand their services, fees, and processes. Evaluate their expertise and reliability before referring them to your clients.
– Build Relationships: Maintain a good working relationship with one or more tax professionals. This can involve regular communication and possibly setting up mutually beneficial referral agreements.
Step 3: Provide Recommendations
Give your clients guidance without endorsing someone directly unless you have verified their work:
– Offer a List of Options: Provide your clients with a list of a few tax professionals they’ve been vetted and appear to have a solid reputation. This empowers them to make their own choice.
– Guide Clients to Software Solutions: For simpler tax situations, suggest using reputable tax preparation software like TurboTax or H&R Block. These platforms offer guided processes that can be very helpful for individuals with straightforward tax needs.
Step 4: Improve Your Bookkeeping for Tax Efficiency
Work collaboratively with tax professionals to enhance your Bookkeeping:
– Seek Feedback: Once you have tax professionals in your network, ask them what additional information or formats would make your records more tax-friendly.
– Continuous Learning: Stay informed about general tax principles that affect bookkeeping, such as deductible expenses, classifications of income, and more. This knowledge can help you prepare records that are more useful at tax time.
By following these steps, you can support your clients effectively without overstepping your scope of work. While you don’t directly handle taxes, providing guidance and building