Tax season is behind us, and with the busiest time of the year out of the way, now is the opportunity to revamp your CPA practice. Your firm is in place, your clients are happy, but you’re still plagued with wondering over what you could have done better. If you want to gain revenue, consider refining in-house processes to boost your productivity and maximize your profits. By following a few simple steps, you can position 2018 to be your best year yet and come out with a lot more cash in your pocket.
Build Your Brand
When building your brand, you need to establish a profit-driven mindset. This means constantly seeking new revenue, brainstorming cost-effective solutions, and reconsidering better pricing structures. For some professional tax preparers, the pay-by-hour model can result in inefficiencies and undervalued efforts. Refer to your cost structure in terms of paid labor, and in the interest of profit, contemplate outsourcing your administrative and processing tasks while keeping a lean, client-facing team. Identify your ideal client or the niche you’d like to best support. As Gordon Ramsay says, you can’t have 100 dishes on the menu and be great at all of them. Instead, hone in your focus and clarify your position within the environment. Find the type of clients who appreciate your work and who you can make a profit on. Establish your firm’s competitive advantages and why you’re best suited to serve that market segment. When offering your services, prioritize those with high margins and rethink services that are not profitable. Refinement doesn’t necessarily mean scaling back, but instead allows you to better direct your time and money through effective advertising.
Your story needs to be clear and cohesive. Research shows that consumers engage more readily with messages that are perceived to be authentic and relative to life experiences. When educating your audience, aim to help them understand not only what you do, but why you do it—what passions motivate and drive your line of work. A compelling mission statement will help build your pipeline of ideal clients. Clarify how you market your CPA firm and watch the profits rise correspondingly. Social media is an effective marketing tool you should learn how to use. It’s easy, and doesn’t require paying a professional. Another method to advertise better is through affiliate networking, or by placing a link to your services on third-party sites. Drive your click-through rate by researching the best network to suit your company. With respect to print-based ads, local news agencies should be at the top of your list. Small firms will stand out in community newsletters while larger firms should put their efforts towards larger forums, such as city-wide newspapers. Advertise in a timely manner, and don’t wait until next tax season to get your name out there.
Sometimes you have to spend money to make money. That said, get rid of your old computers and processors; new office equipment will boost productivity. You also need to invest in online tax preparer software to support your firm. Recent advancements in technology allow modern firms to maximize efficiency; data extraction capabilities, automated auditing procedures, and paperless statements are just a few of the ways software can improve your output and profitability. Connecting to modern tools boosts your efficiency as well as your profits. Before you can grow in size, you need to grow in strength, or risk the business collapsing under its own weight. Proper software and technology will allow you to expand your practice and its revenue at a scalable rate. Taxpayers with the best-in-class products are primed to make the most profit with the least effort. Moreover, clients will expect to see refined systems and the security which these cutting-edge software programs offer.
Use the off-season to invigorate your professional tax preparation. Profitability will come more easily by building around effective processes and smart technologies. You may be okay with your current number, but comfort can lead to apathy, and growth is everything in today’s market. Take the time now to refine your in-house CPA processes and drive your success.