Table of Contents
In the real world, it’s impossible to grow your business without any marketing. Tax preparer marketing strategies could be the beginning of a successful tax planning company.
A good tax preparer marketing strategy can get you more clients. Remember these tax-prep marketing strategies, so you don’t follow all the other preparers who are losing clients because they’re not using them.
Your challenge? You don’t know where to start or what methods to execute. Sound familiar? Maybe your biggest challenges are getting clients and retaining them.
Whatever the challenges, this article will teach you a few marketing strategies that are tax preparer-friendly.
Why Tax Preparer is a Unique Business
Lots of opportunities for growth and expansion
If you want to grow your business, there are lots of opportunities waiting for you as a tax preparer. You can start by handling personal income taxes and then move on to corporate taxes.
You might save on taxes
If your business collects sales tax from a customer but does not remit it to the state or local government, then you are required by law to pay back that amount in taxes. This will affect both your income tax and your corporate income tax.
You’ll be in demand
The U.S. economy is growing steadily every year, and that means more people need help preparing their taxes. The Bureau of Labor Statistics (BLS) expects employment for accountants and auditors to grow by 13% through 2026. This amounts to an additional 53,000 jobs, which is a great opportunity for someone looking to start a tax preparer business.
You can decide how to charge your clients
You can either charge your client per hour or return. Whatever method you decide to use, make sure that it is fair for both parties involved. If you want to offer your services to a lot of people and make a lot of money, then you can consider charging them per hour for their services. However, if you want to serve your clients with honesty and integrity, then consider charging them per return instead.
No need to buy expensive equipment
You don’t need a lot of furniture or computers to be successful in this industry. Instead, invest in buying accounting software so you can keep accurate records of all of your customers’ information.
Keeps you updated with the latest developments in taxation laws
As a tax preparer, it’s your job to study the current tax laws and keep yourself updated on the latest changes so that you can apply them in your client’s case if needed. You should also get yourself familiar with these changes before passing them on to your clients so that they won’t be surprised when they find out about these changes from their accountant or their CPA.
Main Tax Preparer Business Challenges
Government regulations
Whether you’re an employee or self-employed, you must follow government tax rules and regulations. Some of these rules are complicated, so it’s important to keep updated on any changes that affect your taxes. For example, if you’re self-employed, be sure to monitor changes in the health care law that might affect your taxes.
Time crunch
Tax season is really busy for many service providers, especially if they’re just starting. It’s not uncommon for seasonal businesses to be overloaded with work during tax season and slow during other times of the year. It’s important to understand that this scenario will most likely be the case every year if you choose this type of business as your main source of income.
Managing employees
You need to manage your employees effectively, which means that you will have to stick to policies and procedures for each one of them. Strategies for dealing with employee retention should also be considered, as this would directly impact the productivity of your company and its overall success.
Pros and Cons of Tax Preparer Business
Pros
- You don’t have to go through an employer or be subject to the whims of the economy.
- You can work from home, which is less expensive than renting an office.
- There are tax seasons, but you can set your hours in between them as well.
- Your business won’t be affected by layoffs, thus allowing you to keep your job for as long as you want it.
- You may receive more future orders from current clients.
Cons
- Keeping up with clients’ questions and concerns.
- Working long hours during tax season.
- Managing cash flow during tax season.
- Navigating confusing IRS rules and regulations.
- Get paid on time for your services.
- Keeping up with technological advances in the industry.
- Keeping track of new tax laws and changes in the industry.
- It’s a seasonal business.
- You have to be available when clients need you.
Best Tax Preparer Marketing Strategies
Offer free consultations
Offering free consultations is a great way to entice new customers and also keep current tax clients coming back.
If you’re in the tax preparation business, offering free consultations can be a powerful marketing tool to help you grow your client base and increase profits.
Tons of tax preparers offer this service and it’s an easy way to get people through the door and into your office.
When you’re in business for yourself as a tax preparer, free consultations are an especially important tool because they help you stand out from the competition.
The following are some steps to consider when offering free consultations as a tax preparer marketing strategy:
1. Offer to provide a free consultation service before providing any type of service or product. This can create interest in your company and build trust with your clients.
2. Call new clients and ask them if they need any help with their taxes. If they say yes, ask them if they would like you to provide them with a free consultation. Then make an appointment with them for the consultation.
3. Set up an appointment time that works best for the client’s schedule.
4. Keep track of all appointments in your calendar so that you know when it is time to follow up with the client and schedule their appointment.
5. Be sure you have the right skills and experience to handle the task at hand. A customer may not know that they need help with their taxes until they start talking with you.
6. Get the word out that you offer free consultations. Post fliers in local stores or post them on social media groups like Facebook or even Craigslist. You can also put up flyers at community events like fairs or food festivals.
7. Set aside time for your consultation appointments and keep your schedule full so that you don’t fall behind with the workload for your paid customers.
8. Gather all the information about your customer’s situation before beginning their consultation session so that you have a plan in place when you meet with them.
9. Use every opportunity to network with other tax professionals in your area so that you can refer your customers to them if they need additional help after their free consultation appointment with you has been completed.
Targeted ads
Using targeted Facebook ads can be a great way to reach out to customers you already know and convert leads into clients.
As tax season approaches, it’s a great time to start thinking about how you can use Facebook advertising to promote your business, especially if you’re a tax preparer.
The following tips can help you create a successful targeted advertising campaign:
Target your market
It’s important to target the appropriate audience when advertising your tax prep business. You don’t want to target people who are unlikely to need your services. Instead, focus on those who will be most interested in what you have to offer. Use demographic information, interests, and connections to narrow down the number of potential customers you’re reaching and make sure the people you’re targeting are likely interested in using your services.
Set a budget
Before beginning any advertising campaign, you should set a budget for yourself. This will help you determine how much time and money you can spend on your ad campaign. Also, research has shown that it costs almost twice as much money to bring in one new customer through advertising as it does to retain an existing one. When building out a budget, try focusing on retention first and then work toward bringing in new customers secondarily.
Create ads
Before your ad campaign begins, you will want to create some ads that are ready to go when the time comes.
Focus on branding
As a tax preparer, you want to make sure that your practice stands apart from the crowd. You want clients to come to you and remember you and your services.
Here are some tips on how to focus on branding as a tax preparer marketing strategy:
- Get a business license and trade name registration for your business name.
- Decide on the type of practice you want to be – CPA, EA, Enrolled Agent, or Attorney.
- Choose a name and complete your state registration with the Secretary of State’s office, using your trade name along with your registration number.
- Register your business’ DBA (Doing Business As) in your city or county if needed.
- Complete any other requirements for business entities such as partnerships, LLCs, or corporations.
- Create an online presence by creating a website and adding social media links where appropriate. Make sure that everything you put out there is professional and has some connection back to yourself or other professionals for credibility.
- Create an email address for your business that is professional and easy to remember, like JaneSmith@SmithandCompanyTaxPreparers.com rather than Hotmail or Gmail addresses that can easily be confused with personal accounts.
Feature testimonials
When it comes to small business marketing, testimonials often rank near the top of the list for successful strategies.
And for good reason. Nothing beats a positive recommendation from a happy client. Tackling the task of soliciting and collecting testimonials for your tax preparation business can seem time-consuming and difficult.
This is especially true if you are just getting started with your own business.
Here are some tips for how to feature testimonials as a tax preparer marketing strategy. Use these tips to improve your reach and make the most money possible from your business.
1) Make sure they’re authentic. The first thing that people will notice is whether or not the person exists. If you have a photo of someone who doesn’t exist or a fake name, then the whole testimonial loses credibility.
2) Make sure they’re relevant. You don’t have to have every customer leave a testimonial, but you should have a good number of them. If it looks like you only have five total reviews, then someone isn’t going to take them seriously. Make sure that all of your testimonials are relevant and fit within your niche market.
3) Be clear about what you offer. Testimonials are best when they talk about the particular service that you provide.
Offer online services
If you are an accountant or tax preparer, one of the ways to market your business is to be able to offer online services in addition to the traditional ones that you already do.
By offering online services, you can reach a wider audience and therefore increase your sales. Tailoring your service for online customers is simple but not always easy.
Here are some tips on how to effectively offer online services as a tax preparer marketing strategy for your tax services.
1. You will need to have or create a website or blog where you can give information about your services and your credentials.
2. You can also add some of your articles to social media pages, but keep in mind that it is not advisable to post too much. Add only relevant and informative content.
3. Keep your newsletters updated with fresh information.
4. Make use of your e-mail list by sending out newsletters now and then, but don’t overdo it as it will lose its appeal eventually.
5. It is best to research the different payment methods people use so you can match them up with the most convenient payment option for your clients like credit cards, checks, cash, etc.
6. Always make sure to respond to emails and messages from potential customers as soon as possible; a good impression can help you get more business from them in the future.
7. Use social media like Facebook and Twitter as they help make new connections which will result in new business opportunities.
8. Offer free e-books or reports that are related to tax preparation and finance tips to encourage them to visit your site and inquire about your services at the same time.
9. Make sure all of your employees can answer any questions that people might have through an email response.
Do something newsworthy
As a tax preparer, one of the simplest ways you can grow your business is by doing something newsworthy. While it may seem counterintuitive to push yourself into the spotlight when you’re trying to build a business, it can be an effective strategy for grabbing new customers’ attention and getting more business.
Trying to come up with ideas for something newsworthy? Think about these three things:
1. Are there any tax-related trends and issues that are especially relevant now?
2. Is there anything in the news related to taxes that you could tie into your business?
3. What is unique about your business or what do you do better than most other tax preparers?
For example, if you specialize in preparing returns for people who have filed for bankruptcy, you could publicize the fact through advertising, or even on your website. Or, if you have a unique way of preparing your clients’ taxes — say, by offering free consultations beforehand — that’s also something you could publicize to grab some attention.
Facebook Live videos
When it comes to tax season, one of the most important things for a tax professional to do is educate their audience about tax law changes. Running quick videos on Facebook Live or YouTube informing customers about tax law changes in their area can help your business gather leads and grow your customer base at an affordable cost.
Facebook live video is a great way to get the word out about your tax preparation business. With live video, you can share your expertise with clients by answering their questions and providing tips on how to make their returns as easy and painless as possible.
A Facebook live video can also be a great way to promote your business, especially during tax season when people are looking for someone to prepare their taxes. Here’s how to give it a try:
Host live videos during tax season. During tax season, many people are looking for tax preparers. Hosting a Facebook live video about the benefits of filing taxes online is a great way to get new clients.
Create content to promote what you do. Producing some useful how-to videos is a great way to promote your business during the non-tax season too.
Develop content on topics like creating simple budgets and setting up retirement accounts so that when people are ready to start thinking about these things, you’ll come to mind.
Use tools like Facebook Live, Periscope, or YouTube to stream these videos so that viewers will see them in their feeds when they’re relevant.
Host Q&A sessions. People often want more personalized attention, but aren’t sure who to ask or if it’s something they can ask at all! Hosting a Facebook live video session where people can have their tax questions answered allows you to show off your expertise while building trust and credibility with your potential clients.
Final Thoughts
Though many of the strategies mentioned above are imperative to any tax prep strategy, there is an overarching theme that you should be aware of: personalized marketing.
Your advertising campaign—whether that’s through social media or a more traditional medium like television—should always make a concerted effort to connect with your customers.
