Navigating the Accounting Busy Season: Lessons from the Kentucky Derby
In 2022, at R Accounting, our team set the groundwork for what we anticipated would be a transformative year. Yet, 2023 greeted us with unexpected challenges that tested our team's resilience. It was a year-end that pushed us to the brink, challenging us to rethink our approach and adapt quickly.
Our team entered the new year with laid-out and discussed plans for navigating January, our busiest month in the busiest quarter of the year. And it all went awry quickly… not 1, but 2 crashed computer systems and the sudden departure of a team member due to health issues by January 10th threw our well-outlined plans into turmoil.
Embracing Change and Challenges
Our experience in 2023 was a testament to our team's ability to adapt and overcome. Despite technological setbacks and personnel changes, we leaned-in together, and survived the craziest busy season we have ever undergone ~ and came through with a mindset and a promise that never again could it be that crazy.
Throughout this period, we evaluated our processes, pinpointing what succeeded and what faltered. We devised a comprehensive plan for the upcoming year, focusing on improving our approach for the next busy season.
This experience led us to draw parallels between the Kentucky Derby's “Run for the Roses” and our busy season. The Derby's intense action reflects our profession's fast pace and pressing deadlines. As we maneuver through these challenging times, we're inspired by the Derby's dynamics, seeking effective strategies to enhance our practice.
1. Rigorous Preparation – More Than Just a Seasonal Task
Just as Derby contenders undergo year-round training and planning, our firm actively prepares for the busy season throughout the year. This includes client collaboration, team training, and enhancing our workflows and systems. Keeping up-to-date with accounting regulations and tax laws, efficiently managing client files, and proficiency in our internal software are fundamental to our approach. However, we also prioritize enhancing our workflow management and integrating new software and apps.
As a QBO-centric firm, this year we focused on adopting automations and applications to work more efficiently with QuickBooks Online, exploring the vendor floor at industry conferences for new tools for our tech stack. After thorough evaluation, we've incorporated tools like Dext, Expensify, Reach Reporting, and Ignition into our technology suite to streamline our operations.
2. The January Rush – A Sprint With Lasting Impact
Dubbed "The Fastest Two Minutes in Sports," the Kentucky Derby's brief, intense nature mirrors the January to April accounting busy season. This period demands long hours from accountants, akin to the race's energy burst. During this time, prioritizing self-care is essential to prevent overworking.
Recognizing that client needs persist, it's important to manage workload influx and time effectively. In 2023, I embraced 'BALANCE' as my word for the year, but learned it is unattainable without setting clear boundaries with clients and our community. This approach has been key to handling the season's intensity, benefiting both my well-being and our team's performance and client satisfaction.
3. Expertise in the Field – Our Competitive Edge
In accounting, as in horse racing, a well-trained team is essential. Ongoing training and a supportive culture enable us to efficiently tackle busy periods. Our accountants' deep knowledge of clients' businesses and regulatory complexities gives us an edge, akin to a Derby jockey's expertise.
All our team members are QBO ProAdvisors, with most holding QBO Advanced certifications, ensuring thorough knowledge of the platform. We also encourage training in other key software like Gusto, ADP, Shopify, Click-Up, and Expensify, supporting our commitment to comprehensive client service. This approach ensures we maximize the potential of each tool in our repertoire. Recognizing the value of our skills and experience, we continuously evaluate and adjust our client accounting service strategies.
4. Strategic Planning – Pacing for Victory
In accounting, strategic planning is as vital as it is in the Derby, where positioning and pacing are key. Accountants need to manage workloads efficiently, prioritize tasks, and strategically handle multiple clients and deadlines.
Maintaining year-round client relationships is crucial. Consistent engagement and understanding clients' needs streamline processes and improve service quality, especially during busy seasons. Capacity planning is essential, allowing for a clear assessment of workload and team capabilities, ensuring tasks are completed without overworking staff.
Selecting the right clients is another critical factor. It's important to work with clients who are both profitable and cooperative. Realizing that we cannot be more invested in a client's success than they are themselves has been a pivotal understanding for us. This mindset ensures that relationships are balanced and productive, focusing on partnering with clients in their success journey while maintaining our professional integrity and equilibrium.
5. High Stakes, High Pressure – Thriving Amidst Challenges
Both the Kentucky Derby and the accounting busy season have high stakes: prestige and prize money in the Derby, and clients' financial health, legal compliance, and the firm's reputation in accounting.
Challenges vary from internal issues like staffing shortages to external ones such as client communication. Addressing staffing challenges, especially sudden losses, is crucial. Learning from our upset last January, we've built a network of contractors and freelance bookkeepers, establishing relationships and resources while striving to create a resilient system to handle unexpected workloads efficiently.
6. Reflective Review – A Tool for Continuous Improvement
Post-Derby analysis is crucial for future improvement. After the Derby, there is analysis of the race, review of performances, and planning for the next year. Similarly, after the busy season, accounting firms often review their performance, identify areas for improvement, and start planning for the next year.
Consider this after-action review as a report card of your prior years’ preparations. It is an excellent time to identify clients for disengagement, identify areas that require too much manual intervention for new automations, and to explore the strengths and weaknesses of your team for future training and growth. Year-end and busy seasons come every year, and it is our goal to be better every time.
Closing Thoughts: Lessons from the Track
It is only when the busy season commences—and eventually concludes—that the true effectiveness of our preparations is tested. The pressures and stress of this season are our racetrack, challenging us to apply our year-long preparations in real-time scenarios.
Our experiences, much like the Derby, have taught us that success in the accounting busy season is about more than just crossing the finish line. It's about strategic execution, expert navigation, and maintaining balance. Each year presents a new race, with its unique challenges and opportunities, but with our continuous preparation and adaptation, we are always ready to run it well.
*This blog was created as part of our paid partnership with Intuit*
Thurby 2023
