Many tax preparers find themselves looking for ways to maximize their revenue during the busy season. With the right strategies, tax professionals can not only enhance their earnings but also provide valuable services to their clients. Here are some ideas to boost your revenue and diversify your income during tax season.
Market to a niche
Specializing in a niche of tax preparation may seem like it would narrow your potential client base, but often the opposite is true. When you promote a specialty, you’ll be more likely to land clients in that niche. Instead of marketing yourself as a generalist, you’ll be able to present yourself as an expert with the knowledge clients need for their specific tax situation.
When choosing your niche(s), focus on types of taxpayers who have specific needs and could benefit from expert help. For example, filing taxes can be complex for sole proprietors, military families, gig economy workers, social media influencers, divorced parents, those who are insured through the health insurance marketplace, and those who are paying back student loans. In the business arena, focus on marketing to industries that have specific tax laws such as non-profits.
Remember, “niching down” doesn’t mean you can’t see clients outside of that niche. It simply means that you hone your marketing strategy to reach specific groups of people, and you make sure you’re well-versed in their tax needs.
Improve your efficiency
Find ways to work smarter, not harder during the busy season. Utilize technology to streamline processes and reduce errors. For example, automation tools for scheduling appointments and sending reminders can improve client communication and boost retention. Hiring administrative staff can lighten your workload throughout the year, allowing you to focus on attracting new business and providing better service to existing clients. Establishing a systematic workflow for handling documents and data not only saves time but also enhances overall efficiency.
Network using Facebook groups, LinkedIn, and Reddit
Social media is one of the best ways to connect with potential clients in your niche(s). LinkedIn messages, for instance, are excellent for reaching out to business clients as well as individual taxpayers who work in your niche.
Consider joining Facebook groups and sub-Reddits for people in specific industries or life situations that are relevant to your niche (i.e. groups for freelance graphic designers, Etsy business owners, single parents in your area, etc.). While you shouldn’t “spam” the group with ads for your services, these groups often have specific threads where business owners can post relevant services and products. A quick post about how your expertise matches their tax needs can connect you with potential clients.
Work with remote clients
Want to instantly expand your client base? Don’t limit yourself to local clients, especially if you are marketing to a niche or niches. Thanks to improvements in tax preparation technology and a wide shift to remote work during the Covid-19 pandemic, more clients than ever are open to working with a remote tax professional.
Make it clear on your website and social media accounts that you can easily work with clients from across the country. If potential clients are hesitant to send personal documents via email, the TaxesToGo® mobile app offers a secure, fast way for clients to share documents, eliminating the need for emails and in-person meetings.
Attract clients with flexible payment options and refund advances
In addition to being equipped with card readers, consider accepting payment through tax bank products. Bank products simplify how tax preparers get paid, allowing clients to pay you from their tax refund at no upfront cost to them. It’s an attractive option for clients who don’t want to or can’t pay your fee upfront. Additionally, many bank products also allow your clients to get their refund faster through refund advance loans.
Our Bank Products for Tax Preparers guide can help you learn more about choosing the right bank products to grow your business.
Offer tax continuing education
No matter how experienced, tax professionals always need continuing education credits (CECs). Many tax professionals have diversified their income by becoming an IRS-approved continuing education provider. Designing your own courses that can be sold online or hosting webinars or workshops that help other tax professionals get their CECs is a great way to leverage your expertise to increase revenue.
Resell tax software
Reselling TaxSlayer Pro software as a tax service bureau increases awareness of your tax practice and adds a new stream of income to your business. Because you add your business’s branding to the software, you increase the reputation and authority of your brand each time you sell a software package, all while getting paid year-round.
