You already made the first big move in starting your tax preparer business. Now comes the next question: How can you grow your business and make more money all year?
U.S. taxpayers spend 7.6 billion hours thinking about their taxes and rely on your expertise to help navigate the complex tax code. Here are 11 steps you can take to capitalize on your knowledge and increase your tax preparer income this year.
1. Build Your Credentials
Your experience and financial know-how attract and maintain clientele. Participate in the IRS Annual Filing Season Program to gain more knowledge and earn a certification to stand out from the competition. Your business will then be in the public directory of tax return preparers, giving you access to a world of new clients and opportunities to make more money.
2. Offer Online Services
Give your business a substantial boost by setting up a website with easy-to-fill web forms. When you remove the hassle of paperwork, you will attract younger clients by allowing them to easily file online. More than 91% of taxpayers file online and offering web-based services will keep your business ahead of this increasing trend.
3. Keep in touch with clients by offering financial advice
Expand your network by offering off-season financial advice along with tax preparation services. Clients already trust you with very personal information on their returns and would be grateful to seek your advice throughout the year when faced with other financial dilemmas like bad credit. Offer midyear check-ins to keep people on a good fiscal path before April.
4. Use Social Networks
Create a Facebook, Twitter, and LinkedIn page for your business to gain visibility and tell your audience about your services. Your business serves the local community, so share relevant stories and content about local news that your network finds interesting. Post tax tips and tricks that lead readers back to your website for more information.
5. Tap Your Personal Network
Use relationships with existing clients to get new word-of-mouth referrals. Offer discounts to clients who refer friends and family to your business. One discounted tax preparation in exchange for a new client paying full price is a win-win.
6. Sell Insurance
As a tax preparer, you already offer a service that focuses on financial security and you have a trusted relationship with clients. Selling life, liability, travel, or other types of insurance to your clients would be a profitable additional revenue source that will increase how you make money as a tax preparer.
7. Share Client’s Success Stories
Use social media or an email list to share stories with your network about your clients’ success as it relates to tax savings. Did someone take a vacation with the extra money from a return? Keep your network informed about the benefits of working with you all year long.
8. Add Credit Repair services
Tax preparation is seasonal and establishing additional sources of consistent revenue is key to increasing your tax preparer income. Build up your brand loyalty by offering another in-demand financial service like credit repair. Make your business a one-stop-shop for financial well-being all year long. Most credit reports have unreported errors that if resolved can change your client’s life for the better.
9. Streamline Your Process
Use digital tools to stay organized. Ask clients to submit digital copies of documents and fill out as much information as possible through a secure email. Copy and pasting data will save you time and money. Every minute wasted is a dollar lost!
10. Offer Free Consultation
Getting new clients through the door can feel like a challenge after years of business. Advertise your business along with the promise of free consultation for new clients. A consultation gives people the chance to get to know you, your process, and your expertise so they will be more willing to entrust you with their tax preparations. Every new client is a boost to your tax preparer income.
11. Supplement in the slow season
The highest demand for tax preparation is from January through April and your business needs a plan for the slow season. Plan a scalable side-business that allows you to increase your tax preparer income. Financial businesses, like credit repair or bookkeeping, with low initial investment and flexible year-long services, are the best options.
Read more about how to leverage your financial know-how on the Tax Preparer Page!