Is it possible to grow your business and increase revenue in unforseen circumstances? It can be with the right marketing strategies and diverse revenue streams! Even in an unpredictable economy, tax preparation remains a steady industry. Here are six ways you can find more clients and diversify your income in both good and trying times.
1. 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 speciality, 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.
2. Network using Facebook groups, LinkedIn, and Redditt
Social media is one of the best ways to connect with potential clients in your niche(s). Join 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.
LinkedIn messages are excellent for reaching out to business clients as well as individual taxpayers who work in your niche.
For tips on getting started with these platforms, see our guide, How to Market Your Tax Business on Social Media.
3. 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 the rapid shift to remote work amid the 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.
4. 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 allowing 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.
5. Offer tax continuing education
No matter how uncertain times are, tax professionals always need continuing education credits (CECs). Many experienced tax professionals have diversified their income by becoming an IRS-approved continuing education provider. Designing your own courses and helping other tax professionals get their CECs is a great way to leverage your expertise to increase revenue.
6. 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.
For tips on increasing revenue even in the off-season, be sure to read How Tax Preparers Can Make Money Year-Round.
This article was last edited on July 21, 2022.