Jen Badger, Operations Director at WhisperClaims
Personal tax returns make January arguably the most difficult month for accountants, but the run-up is no picnic either. Accountants juggle a number of deadlines between September and December, including Financial Year Ends and R&D Tax Relief claims. With masses of pressure to submit claims in a timely manner, it can be easy for accountants to omit important information to support claims, which may also put a strain on client relationships in the process. According to Jen Badger, Operations Director at WhisperClaims, a repeatable, consistent process, coupled with cloud-based technology, can make the accountant’s work easier and the client’s experience better.
The Pressure of Deadlines
Accountants are under a lot of stress from September to December. The bulk of tax bills fall due in September – which accountants should be offsetting with R&D Tax Claims if their clients have eligible work. Financial Year Ends are also looming; as well as hard deadlines for December 2020 R&D Tax Relief claims, which must be with HMRC by midnight on 31st December. Additionally, everyone forgets every year that the country shuts down around 20th December, leaving accountants with even less time and more pressure to get through the workload.
Failure to meet these deadlines will not just mean an even more challenging January; it could result in clients missing out on vital claims. A client will not be grateful to an accountant who has established himself or herself as a trusted business adviser, but then fails to submit an R&D Tax Relief Claim on time – or, indeed, submits an incomplete claim that could lead to an HMRC investigation – especially given the current cash flow pressures. Nor, of course, will clients enjoy being chased for information when at home during the pre-Christmas wind-down.
Repetition, Repetition, Repetition
It is therefore imperative that accountants implement solid processes for managing tax relief claims. The process does not need to be customised for every client. The consistency and quality of the client experience can be improved by accountants through a robust, repeatable process.
Underpinning this process with a solid technology platform can unlock additional efficiencies. The key to preventing mistakes is knowing at the beginning of each month what claims are due and when, as well as their current status. The system can also guide accountants through the required questions for an R&D Tax Relief claim – and create the supporting documents and HMRC report as quickly as possible. Plus, for those clients that have made a claim before, it is simple to update the new claim with relevant information from the last year, further reducing the time required.
Coherent Operations
It is also important to maximise relevant skill sets. It is possible to share the workload effectively between financial and technical experts when everyone within the office has full access to the information, including claim status. Cloud-based solutions can also help accountants overcome the endemic problem of getting clients to provide relevant information. If necessary, clients may self-serve, completing a subset of the full question list at their convenience and reviewing supporting documents such as R&D Tax Claims and HMRC demands. Thus, clients can confidently upload data in the evenings or on the weekend without having to directly contact an accountant, improving data timeliness and avoiding last-minute panics.
Speed of Execution
With intelligent software-based support and R&D tax expertise on hand from the software vendor, combining a robust process with smart support completely transforms the time it takes to create an R&D Tax Claim – freeing accountants time to focus on the countless other things that need to be addressed to meet all deadlines. Even if an accountant is working right up to the wire, as soon as the button is hit, the report is available within seconds. No last-minute number crunching; no need to get the basics to HMRC by midnight to hit the deadline and then hoping to have time to complete the report in the first week of January.
If the deadline season becomes just a little less stressful for both client and accountant with an effective, consistent and fast approach, accountants can focus on delivering the high level of service and experience that builds the reputation as trusted advisers.
