Five Soft Skills Every Tax Preparer Should Develop

As a tax pro, you know how important it is to stay updated on the latest tax laws and strategies. But equally important for your business are “soft skills,” like effective communication, empathy, and problem-solving.

The skills that got you where you are today, are not the same skills that will get you where you want to be tomorrow"
- Carlos Lopez 

Carlos Lopez, EA, CEO of Latino Tax Pro and Lopez Tax Service, is a leader in tax preparation and tax education. With his proven ability, and deep understanding of the community he serves, he has built a highly successful practice and a leading tax school.

He credits his success in part to a balance of hard and soft skills. Soft skills are essential for building strong client relationships, providing exceptional service, and growing your business.

 

Here are some ways you can leverage five key skills that Carlos has developed and refined to enhance your success as a tax preparer:

 

1. Accountability is the cornerstone of a successful tax preparation business. It’s important to foster a culture of accountability in your firm. Tax preparers are entrusted with sensitive financial information, and clients expect their data to be handled with the utmost care and confidentiality. By being accountable, tax preparers demonstrate their commitment to professional standards and build trust with their clients. It involves taking responsibility for one's actions, meeting deadlines, and maintaining accurate records in compliance with IRS regulations. Without being accountable for adherence to IRS Circular 230, the tax code, and ethical practice, it’s not possible to succeed as a tax preparer. Additionally, accountability fosters a culture of transparency and integrity within the business.

 

2. Goal setting is another essential skill for tax preparation professionals. Probably more than in any other profession, tax preparation is driven by strict deadlines and penalties for not meeting them. The tax professional must balance their obligation to meet client deadlines with business goals that may include increasing your client base, expanding your service offerings, or improving operational efficiency. By establishing clear and measurable goals, tax preparers can prioritize staff workload, allocate resources effectively, and track progress toward business objectives. Setting achievable targets provides a sense of direction and motivation. Furthermore, goal setting allows for regular evaluation and adjustment, ensuring that the business remains adaptable to changing market conditions.

 

3. Hiring the right team is a critical aspect of running a successful tax preparation business. A key to growth in tax preparation is being able to scale the business. A tax preparation business cannot grow without a skilled team to provide service to a growing client base. Effective hiring strategies involve identifying the skills and qualities needed in employees, conducting thorough interviews, and providing adequate training. A well-rounded team will help with a variety of tasks, from day-to-day client interactions to solving complex tax issues. By hiring selectively and investing in employee development, tax preparers can create a positive work environment and foster a culture of excellence.

 

4. Social media marketing has become an integral part of modern business practices. Along with AI, no other marketing tool has exploded so quickly and continued to change as fast as social media. Tax professionals need to keep up. For tax preparation businesses, social media platforms offer a great opportunity to showcase the company and its leadership, reach potential clients, and build brand awareness. By sharing compelling, useful content, such as tax tips or industry news, tax preparers can position themselves as experts in their field. Engaging with clients and prospects on social media can also help generate referrals. However, it is essential to maintain a professional and informative tone on social media to avoid damaging the business's reputation or being seen as giving specific tax advice.

 

5. Negotiation skills are indispensable for tax preparation professionals. Whether negotiating with clients regarding fees or discussing terms with vendors, the ability to reach mutually beneficial agreements is crucial. Effective negotiation involves active listening, understanding the other party's perspective, and finding common ground. By developing strong negotiation skills, tax preparers can protect their business interests, build stronger relationships with clients and vendors, and resolve disputes efficiently. And when representing clients in tax matters, you may be called upon to negotiate with the IRS and other tax authorities.

 

Ready to Take the Next Step?

If you're passionate about the tax profession and committed to developing these essential skills, take the next step by enrolling in one or more of our Business Growth courses. These targeted courses, designed by the expert instructors at Latino Tax Pro, will help you develop these skills to grow your business and advance your career. Plus, sign up for our free Time Management course to enhance your efficiency and productivity. 

Check out the courses and enroll today!