Five Ways to Evaluate Your Tax Business after Filing Season - TaxAct ProAdvance

For many accountants and professional tax preparers, the end of filing season can bring a sigh of relief and a welcome slowdown in client work. Although the tax deadline can bring back some sense of work-life balance, successful tax preparers use the month of May and beyond to evaluate the filing season, their business and to start preparing for next year.

1. Calculate Your Cost per Customer

It’s a cold hard truth that some clients take more time than others and that can mean that at a certain point, some clients just aren’t worth the cost. Make sure you have an idea of how much time is spent on each client during filing season, and identify outliers. Are there certain types of clients who you can offer additional services to and increase your overall revenues? Are there other clients that seem to take more time than they are worth? Where you can find efficiencies?

2. Identify Potential Growth Clients

Small client interactions during filing season can uncover other unmet needs of your client base. Take time in the summer and fall months to follow up with those clients who expressed concerns or needs for your other services, and start the process to provide year-long solutions – not just a glut of hours at tax time.

3. Identify Year-Long Revenue Streams

Gone are the days where tax preparers needed to rely on the boom and bust of filing season. Consider what other steady revenue streams you can add to provide more consistent cash flow throughout the year. Consider payroll and other HR services that you can provide.

4. Follow Up on Your Consultative Promise

All too often, we get frustrated when the advice we provide at tax time isn’t followed up on by our clients. Now that the dust has settled, take some time to reiterate your recommendations and help your clients with an action plan. This will give you a sense for what services you could potentially provide this year and beyond.

5. Embrace Technology

More and more cloud technology platforms are enabling tax preparers to either a hub for or advisor on small business solutions. Take some time to vet which cloud, mobile, and integrated technologies you can provide to clients not only next tax season, but all year long. The better service your clients receive, the more likely you are to have a booming and growing business all year long.

For more tax tips and small business resources, visit the Payroll Blog at blog.surepayroll.com

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