Share of returns paid before or at delivery
The simplest indicator that payment points are working.
Tax preparation offices · Invoicing and collections follow-up
Collect your fees before e-file, not in a June phone campaign
Individual clients usually pay at pickup or before e-file. The money that slips is elsewhere: business returns billed after delivery, extension work finished in October, bookkeeping and payroll clients on monthly fees, and amended returns nobody priced. By the time the owner reviews receivables, some balances are six months old and awkward to raise.
How it often works today
- Business and extension returns are invoiced after delivery, and some are paid months later or not at all.
- Payment is not tied to e-file or delivery, so clients receive their return before the fee is settled.
- Reminders depend on the owner finding time after April 15, when energy and goodwill are both low.
- Fees for extra work, such as notices or amended returns, are often not billed because nobody recorded the time.
We would review how and when you bill each type of work, whether in your portal, tax software or QuickBooks Online. Then we would set clear payment points, such as payment before e-file or a card on file for business clients, and a consistent reminder schedule for balances that remain. The owner decides any discounts, payment plans or write-offs.
The improved workflow
Set payment points by work type
Agree when each type of work is paid, such as before e-file for individual returns, on engagement for a deposit on business returns, and monthly for recurring services.
Tie payment to delivery
Use your portal or e-signature tool to request payment along with the Form 8879 or return review, so signing and paying happen together.
Run a reminder schedule
Send polite reminders for unpaid invoices at set intervals, then a call task for the owner or office manager once a balance passes an agreed age.
Capture extra work
Create a simple way for preparers to log notice responses, amended returns and other extra work so it is billed under the engagement terms.
How we deliver this: AI automation for small business or fractional CTO leadership, scoped in writing and run over 90 days. See pricing or the sample scope.
What we would measure
Receivables over 60 days
Older balances are harder to collect and strain client relationships.
Unbilled extra work
Shows whether notices and amendments are being captured and billed.
Where people stay in control
- Discounts, payment plans and write-offs are decided by the owner, never by an automated reminder.
- Payment details are handled only inside a PCI-compliant processor, not in emails or notes.
- Holding a return for payment follows your engagement letter and professional obligations, and the office checks applicable rules before adopting that practice.
Example
Illustrative: extension season balances
For example, an office files about 200 extensions and completes most of them between August and October. In past years, invoices went out with the return and many were still open at year end. With payment requested alongside the Form 8879 in the portal, and two reminders for anything left unpaid, the office manager tracks open extension balances weekly through the fall. These figures are illustrative.
Tools typically involved
What the first 30 days look like
In the first 30 days we would review last season's aged receivables, list how each type of work is billed, read your engagement letter terms and agree payment points, reminder wording and a receivables target with the owner.
Common questions
Can we require payment before e-filing?
Many offices do, and it is usually set out in the engagement letter. Rules on withholding client records or returns can be nuanced, so check your professional obligations and any applicable guidance. We can help you put the process in place, but this is not legal or ethics advice.
Do our tools support this already?
Often yes. TaxDome, Canopy and SafeSend include ways to request payment alongside delivery or signing, and QuickBooks Online can send invoice reminders. The work is usually in setting payment points and templates consistently, rather than adding new software.
How do we raise fees for extra work without upsetting clients?
Clear engagement letters help most. If the letter says notice responses or amendments are billed separately, a short invoice with a description of the work is expected. We would review your letter wording with you and set up a simple way to log extra work as it happens.
The business case
Does it pay for itself?
Illustrative defaults for a tax preparation office. Replace them with your numbers.
What this workflow costs today
a month in staff time, before any lost sales
Monthly fee + assumed tools +
Break-even: new clients a month (at first-year value)
Or: staff hours recovered and redeployed
Break-even additional revenue
Value of +1 point of win rate
First 90 days, service fee
Worth a closer lookTest the assumptions
Illustration only, not a forecast or guarantee. Recovered staff time becomes a cash saving only if spending actually declines or the time goes into paid work. Tool costs are an assumption; we replace every number here with yours before recommending a scope.
Invoicing and collections follow-up in other industries
Accounting and CPA firmsArchitecture firmsAuto repair shopsCommercial cleaning companiesConsulting and professional services firmsDental practicesElectrical contractorsEvent and catering companies
Invoicing and collections follow-up: full guide
Related guides
How to automate invoicing in QuickBooks OnlineDocument processing automation for service businessesHow to measure the ROI of AI and automationAI automation for small business: costs, limits and what pays back
Terms used here
Next step
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