For many tax and accounting firms, it can feel like each year’s tax season is never ending. With all of the tax law changes, government stimulus programs, and the changing needs of your clients, it’s easy to feel overwhelmed. 

However, you can take control now and plan ahead to ensure the next tax season is different. Here are three things you can do to start off tax season right.

#1: Communicate prior to engagement

Taking a proactive approach to communicating with your clients prior to tax season can be the difference between a proactive tax season and one that feels as if it’s constantly reacting. This communication can take a number of forms, but the most important thing to remember is that your clients want to hear from you. One way to successfully communicate with your clients is to have a consistent email drip campaign to let them know how this next tax season will look, and help prepare them to do what is expected of them.

This drip campaign can be a four-email sequence with the first email welcoming them to the next tax season:

• The first one should cover two main items: thanking them for their business from last year and letting them know what to expect as we get into the next tax season. 
• The second email should go over any new technology you are using for tax season and provide updates on any new tax guidance that may be applicable to them.
• The third email should cover your tax process from end to end. Using an embedded video in that email can be helpful to paint the picture of how your tax process works.
• The last email should prep them on what to expect next, including signing an engagement letter to kick start the tax process. Communicating with your clients provides you the opportunity to get ahead of tax season and prepare for what to expect going forward.

#2: Get your clients engaged early on

Early client engagement is key to your success. Don’t wait for them to email you stating they are ready to start their return; instead, send out your proposal and engagement letter for the tax services you are going to perform. This not only shows that you are proactive with your clients, but helps you manage your tax season and workload much more effectively. You will also be able to manage your capacity better if you know who you are working with during tax season, which can allow you to either take on new tax clients or know when to not let any more clients in the door. It also helps get your clients going, so they are not waiting until the last minute to start the process with your firm.

Getting your clients engaged early on this year is even easier with Practice Ignition’s latest release that allows you to get multiple signatures on your engagement letter. When you want both spouses to sign the engagement letter for their 1040 or need multiple partners to sign the 1065 tax return engagement letter, you now have the ability to streamline this process. 

#3: Use automation to provide a good customer experience

Automation is a great way to make your tax season more streamlined. For example, once the engagement letter is signed, automate sending your client request list for tax documents, and have your internal workflow process set up automatically. Getting that client request list out to your clients shows your clients that you are ready to work with them right away. Having a workflow item set up in your workflow software ensures that nothing falls through the cracks and puts your team on the same page when it’s time to start work on that tax return. These simple automation steps that you can set up through Practice Ignition will help you provide a better customer experience.

Having a good tax season for your firm will only happen if you do the right things prior to tax season to set your firm up for success. Having a proactive communication process, engaging with your clients early on through Practice Ignition, and putting automation in place can be the difference between suffering through tax season and thriving through tax season. These steps will also go a long way in delighting your clients, so they come back year after year.

Most people may think accounting is purely about dollars and cents. Admittedly, much of a tax professional’s day-to-day tasks probably revolve around all-things financial, but there’s more to the job than crunching numbers.

One aspect many may not think about—but is just as crucial to an accountant’s success as anything—is client service.

The importance of client service

No matter what kinds of clients you have, they all have one thing in common: They are people. Any client-facing role inherently has some service-related tasks, although they may not always be framed that way.

Just as it is with any other profession, client service plays a role in whether someone decides to do business with you, which can affect the longevity of your relationship. In fact, research by HubSpot found 93% of customers are likely to make repeat purchases from businesses with excellent client service. Not only that, but researchers at Yale found higher rates of satisfaction can also lead to more word-of-mouth recommendations and referrals, the most valuable kind of marketing you can get to help attract new clients.

In order to reap the rewards of a positive client experience, you need to make an investment in your client service. Here are seven ways any tax professional can implement to provide standout service.

1. Know your audience 

While many professionals work with a wide range of clients, each one probably has specific areas they’re most interested in, different levels of knowledge, or items that are more relevant to them based on their specific circumstances.

As Jenny Rush, CPA and controller at Help Scout, notes, “We deliver financial information in the form of numbers, but we also have to build a story around those numbers to interpret them. Learning the technical aspects of the craft can be challenging, but being able to take those concepts and lay them out in a way that is consumable for anyone is harder.”

Consider creating a short questionnaire you have any new or current client fill out to better understand what their primary areas of interest are, preferred contact method, level of knowledge, and even frequency of contact. After getting those answers, add them as a note to their client file so you can reference it later.

Since a client’s needs may shift, you could make it a practice to have them review previous answers and update anything that may have changed on a yearly basis. That way, you’re always up-to-date and reminding your clients that they’re important.

2. Set expectations (and meet them)

Mismatched expectations can prove problematic in almost any line of work. Add in the additional sensitivity that exists when you’re handling someone’s finances, and the stakes get even higher.

As part of the questionnaire, you could include a few specific questions to get an idea of what your client expects of you. Some example questions could be:

• What was something your previous accountant did that you liked?
• What was something they could have done better? 
• Is it more important to you to get a quick response or a thorough one? 
• How quickly do you expect a response when reaching out?

Once you have that information, you could draft an informal agreement between you and the client, and save it to their client file to have for reference. If you really want to dive deep, you could send out the agreement at the end of the year and ask your clients to provide feedback on how you performed based on the parameters of the agreement.

3. Communicate proactively

When you work in a certain field long enough, it’s easy to fall into the trap of thinking clients know more than they do. Although something may be common knowledge within the profession, expecting everyone to have that same level of expertise is a recipe for disaster, and part of the reason proactive communication is so important.

As Rush points out, “Sometimes people don’t know what deadline might be coming up or what compliance item they may need to address so people appreciate it if you bring those to their attention proactively.”

For example, if you hear about a new law or regulation going into effect that could impact a certain client, you could send a note their way about the change and give them some pointers on how to prepare. Having information like that as early as possible could save a lot of headaches and shows you’re actively engaged with their account.

Romeo Razi, CPA and founder of TaxedRight.com, has a monthly email newsletter he sends out to his blog subscribers with reminders, updates, and key dates to keep in mind. Romeo uses a number of email subject line writing techniques to improve open rates and readership of his newsletter. This helps keep his current clients stay informed and works as a great marketing tactic for prospective clients.

4. Empower clients to help themselves 

Sometimes, great service means making it so your clients don’t have to reach out to you at all. Self-service tools mean clients are able to get answers when they need them, without waiting.

You could create a knowledge base, and include articles about common tax filing deadlines, what types of expenses qualify as a business expenditure, and other common questions clients may have. I recently heard of an accountant who created a VIP Slack channel just for their clients.

Offering online payment options or Intuit® eSignature can be very convenient for clients. If you want to go a step further, products such as Intuit Lacerte® Tax and ProSeries® Tax let you create custom portals through SmartVault where clients can simply and securely upload documents hassle free.

5. Embrace technology 

You could, in theory, track a client’s expenses in an Excel spreadsheet, but instead choose to use QuickBooks® Online for one reason: It’s better. Using technology, especially real-time processes, saves you time, reduces errors, and makes for an overall better experience for you and your clients.

The same is true with client service. Trying to manage client requests with issue tracking tools not built for that purpose expressly is possible, but certainly not preferable. There are a few different types of client service software that could help make things better:

• Shared inbox: A shared inbox is a tool where multiple people are able to access incoming messages. Most shared inboxes include different organization and collaboration tools teams can use to improve customer service.
• Live chat software: If you want to communicate with clients in real-time, live chat software can be a good option. Even if it is not as resource intensive as phone support, it still has the immediacy aspect. According to a recent customer service software review, live chat leads to higher satisfaction ratings when compared to phone support (82% satisfied vs 44% for phone).
• Knowledge base software: Knowledge base software lets you create, organize, host, and manage self-service content.
• Help desk: Help desk software is usually a catchall term for service platforms comprising a number of the tools mentioned above. There are three major categories of help desk software: cloud based hosted on a vendor’s website, self-hosted installed on your own servers, and open source that lets your developers customize it any way they like. If you’re interested in using a number of different tools, a help desk is probably your best option.

Figuring out exactly what software works best for you may take some time, but there are a few things you should look for in any option you’re considering:

• Multi-channel coverage: Find a tool that covers the different channels you communicate with clients through. For example, if you email clients and want to create a knowledge base with answers for FAQs to reference in your emails, find a solution with both those capabilities.
• Intuitive interface: If something is difficult to use, chances are you won’t use it. Do trials of any tool you’re seriously considering. No amount of demos, or walkthrough videos can match actually getting hands-on with a product.
• Reporting and metrics: One of the biggest advantages of having a dedicated tool is understanding your performance. If a tool doesn’t include those insights, you may not be getting as much out of it as you could be.

6. Audit your efforts 

Just as you audit a client’s accounts to make sure everything is in order, you need to do the same with your service. There are several ways you can go about doing this:

• Ask for feedback: One of the best things you can do is ask the people you’re serving how you’re doing. You could send out a year-end or quarterly satisfaction survey to get an idea of how you’re performing. Or, you could set up times with a few clients and ask for feedback in those sessions.
• Automate the review process: Many firms are asking their clients to rate their service through online reviews that can be published on Google My Business and other forums. You can automate the review process with several marketplace vendors.
• Look at metrics (if you have them): If you’re using a help desk or something similar, chances are there’s some sort of reporting function. Most track things like how long it took you to respond to a request on average, how long it took to resolve the issue, and how many messages were sent on average.

Any method will work, but it’s best if you can do a mix. The combination of sources paints a more complete picture for you and your clients.

7. Make changes when necessary

The simple truth is this: You can’t conquer client service. No matter how good you are, there will always be room for improvement. Being willing to make those improvements is what will set you apart.

Take any feedback offered to heart and see if there are practical ways to address any client concerns that come up. You might not be able to do it all … and that’s okay. Find the areas that have the highest potential impact and focus on those first.

If you can’t fix something right away, make sure you acknowledge the feedback you received. It shows you’re engaged and interested, even if you’re not able to address it immediately.

Moving forward  

Client service may not be the hottest topic around the water cooler at your firm, but that doesn’t mean it should get any less attention than anything else. Clients are the lifeblood of your business, and if you don’t take care of them, they’ll find someone who will.

Take time and invest in the effort you’re putting forth. Look for tools that can help make things better for everyone involved, and don’t hesitate to ask for feedback. As it is with anything, what you put in is what you’re bound to get out. Be earnest in your efforts and it will pay off in the long run.

Expressing value can be uncomfortable for most accountants, mainly because we tie value to the amount of money we charge our customers and clients, and it relies on us bragging about our skills and expertise. I would like to share with you a personal example of this.

One thing that I value more than anything is time. I use automation to a do a bunch of things in my business, and I’m striving to do the same in my home life.

I’m the person responsible for laundry in my home, and we usually have about four loads every other week, which takes me about five hours to do. I decided recently to try the wash and fold service at the laundromat less than five minutes from my home.

I took my usual four loads of laundry; they charge $1.00 a pound, so to get my clothes washed, dried, and folded, it cost me $43. This was the best money I had spent in a long time. I regained five hours to work on a project that would net me $500 and I was able to go out to dinner with my husband. For me, this was the best money I have spent in a long time because I got my time back.

This is the feeling we have to guide our clients to before and after they hire us. In order to do this, we must first get an understanding of what the client actually values. As I presented in my last article, you must listen to the things that your client says, and sometimes, what they don’t say in order to give you insight into what they value. Once we are clear about what’s important to them, it’s time to show them how we are actually helping them reach those milestones.

This is where you get to pull out your fancy bar charts and graphs. Take those values the client has, turn them into key performance indicators, and report on them at least annually. If the client valued time, you could present how many hours you saved them in the past year from having to do research or with compliance services.

If they value money, show them how much increase in revenue they have had over the past year because you freed them up from having to do the back-office tasks they dreaded so much. Explain to the customer that because they can focus on doing the things that they choose to do as a business, and not just “tasks” that can take them away, they can have the capacity to grow.

You can even showcase how your tax planning strategies help them save on taxes. Moreover, for those clients who are chronically late filing returns, you can show them how much they have saved in interest and penalties just by working with you and your firm.

It’s great to present these wins right before you send out that new engagement letter with your increased pricing. The client will really understand how you have helped them and will be more willing to do so in the future.

Tell your story

But how do you showcase your value to potential clients? I love using case studies and testimonials to do this. One way is to write a blog post about one of your clients (with their permission, of course) that focuses on the wins you helped them achieve. Then, publish it on your website.

Really tell the story of where that client was before they hired you and what they achieved or accomplished after they started working with you. This serves as a permanent record of the things your firm can do.

You can also ask for client testimonials, highlighting the pain point/s you solved for them. Clients usually don’t mind sharing how you helped them, you don’t be afraid to ask!

Perhaps you don’t yet have any existing clients and want to present your value to potential clients. Use honesty. Again, listen to your potential client’s pain points and share the skills you currently have to assist them.

You are the expert

Tell potential clients about your experience or education level, and ask them to trust that you will work diligently to get the job complete. Tell them that in order to ensure their satisfaction, you will track the steps you take to achieve their targeted outcome and that you will communicate with them frequently to ensure they are getting their desired results. Remember, the client came to you because YOU are the expert—so be the expert.

Get social

I also love using social media to showcase expertise. Doing a series of post or vlogs that really hone in on your potential clients’ pain points can lead to a steady stream of leads coming in.

Good content also gets ranked high on Google, so don’t just slap up some post and wonder why no one is engaging. Actually solving a problem and/or educating your target market will lead to shares and new referrals.

Final thoughts

To me, value is the feeling clients have when working with me. I do my best Bob Ross impression and paint a picture of what the before, during, and afterwards is going to look like. I explain to every potential client our core values and what our processes are to ensure these things are in alignment with what’s important to them.

My goal after our initial call is to help them see we are the perfect partner in their success, and they cannot achieve the goals they are reaching for without us. The best part of painting this picture is coming back to marvel at its beauty after we have accomplished their initial goals—and so much more.

Editor’s note: This article was originally published by AccountingWEB.

It’s no secret that the internet has changed the way we do business. Not only are there more ways to shop and more things to choose from than ever before, but the opportunities (and pitfalls) for business owners are also numerous.

Chances are that you have clients who own a brick-and-mortar business, but don’t yet have an online component to their business—or even much of an online presence at all. There are some great reasons to embrace the next step in the evolution of business, and help them sort out the pros and cons along the way.

A brick-and-mortar business is any business with a physical storefront, where people go in person to do their shopping. It might be a used car lot, clothing store, or even a private consulting or therapy office. Some businesses have gone entirely online, many maintain a hybrid of virtual and physical stores, and others are still resisting the idea of going entirely online.

Moving online: How hard is it?

As far as the details are concerned, moving online depends on the business, but there are definitely pros and cons. Let’s start with the pros.

1. Online is accessible

One limitation of brick-and-mortar businesses is that they have brick-and-mortar hours. If your customers can’t get to the store or place of business when your clients are open, they’re simply going to have to wait until they’re open again—or, worse, go to a competitor. With an online business, customers can shop at their discretion, ordering goods or services at any time of day, week, or year.

The increased accessibility of an online business can also apply to people who are older, disabled, have transportation issues, or otherwise might not be able to get to a physical location as easily as they’d like.

2. Clients will have a larger clientele

When a client owns a brick-and-mortar store, the customer base might be limited to the people in that state, city, or neighborhood. When they take their business online, they have the potential for a much wider audience. With enough success, ambition, and good marketing, a business might even go global. When shopfront is on the internet, people aren’t limited by their location or proximity.

3. Enable customer data and customization to build relationships

While it’s entirely possible—and even common practice—to get to know customers personally in order to cater to their preferences and keep them coming back for more, this relationship generally isn’t an option in online sales … or is it?

One of the major advantages to taking a business online is the amount of data your clients can collect on their customers. If someone comes into a brick-and-mortar shop and buys something, that only tells you a little bit about them. Loyalty programs and mailing lists will only take them so far in terms of customer data, but with the right e-commerce software and technological support, they can collect all kinds of information on their customers without going to a lot of extra trouble.

4. Personalize the experience

When customers buy online, the owner might get access to:

• Personal demographics, such as age, ethnicity, income, education, marital status, and where they live.
• Preferential data with regard to what they like to buy, brands they’re loyal to, how sensitive they are to sales or high prices, and other information.
• Behavioral data, including their purchase history, and when and where they shop at the business. Do they buy full price? How much time do they spend at an online shop?

Information like this can be studied with analytics software. You can not only personalize content to customers without having a one-on-one conversation, but also get hard data on what’s working and what isn’t.

5. Flexibility is key

Just because a store is online 24/7 doesn’t mean the owner also has to be online. If your clients own a brick-and-mortar store, they might have to be there from opening to closing, or even longer. With an online business, owners can set their own hours when it comes to fulfilling orders and being available for customer service requests. The hours may not necessarily be shorter, but they will be the owner’s hours to choose.

6. There may be lower overhead

There are many expenses typically incurred by brick-and-mortar stores that online sites simply don’t have to contend with, such as office rent and utilities. If clients are moving their business online, they may also be able to do their work with fewer employees and staff—meaning they might be able to either bring down the expenses significantly or move everyone to a much nicer working space for the same cost. Depending on the nature of the product or service, the types of things they would pay for could drop dramatically.

7. More convenience for customers

We’ve already talked about customers being able to shop whenever they want at an always-open online business, but there’s also the advantage of being able to shop wherever they want, browsing with a mobile app or browser, and buying things with just a click or two. They also have the option of different payment providers, giving them more choice and flexibility as customers. No crowds, no lines, no driving or trying to find a parking spot. With an online shop, customers enjoy a lot more convenience, which holds a lot of appeal.

8. There is more space

It may seem like a minor thing, but it’s definitely a perk. When you have clients who go digital, it means a lot of your paperwork goes digital, too. That could mean no more piles and documentation cluttering their offices. However, If they move the product to a fulfillment center or other third-party facility, they could free up space that’s normally taken by inventory, and either move to smaller offices or make their existing offices a much more spacious and pleasurable place to be.

9. Technology support is readily available

Website development no longer has to be a painful, expensive process. Services such as Squarespace can get you set up with a beautiful, functional website in a matter of days or hours.

• Instead of hiring a graphic designer for online promotional materials or creating a graph in Excel, the client can become versed in free tools, such as Canva, to create appealing graphics from existing templates.
• The business’ social media presence doesn’t have to all be done manually, and can be scheduled with online tools. These include Hootsuite and Buffer.
• The business can migrate its phone services to resources like Nextiva’s multichannel contact center to use voice over IP.
• A roadmap and timeline for a business is typically done on paper, but can be migrated to an online service, including Preceden or other timeline tools. This software is not only more flexible and visually appealing, but also much easier to share and collaborate.
• The quality of your client’s customer service doesn’t have to take a major hit just because they’re no longer face-to-face with customers. They can still provide top-flight services with a variety of online customer service tools, and even entrust some of their customer service to chatbot software, which can handle common customer service needs without having to involve additional staff. Top 11 FreshDesk Alternatives is a great guide that goes over all the top help desk software, and the pros and cons for each one.

10. Scalability is important

We’ve already touched on the possibility of your client’s business reaching a global customer base, but another advantage of taking your business online is that going global doesn’t necessarily have to mean a logistical nightmare. With brick-and-mortar stores, going nationwide or international can be a huge undertaking, and expanding too fast has killed more than one business. An online store doesn’t necessarily require building brick-and-mortar shop fronts worldwide, hiring staff in other states or countries, or a number of other scaling problems.

Cons to moving online

While there are a lot of perks to taking a business online, it’s not all sunshine and roses. Here are a few of the potential downsides and challenges.

1. There’s a learning curve

Going online may mean a whole new way of doing business, which means your clients have plenty of things to learn all over again. All that handy software has to be installed, implemented, learned, and mastered. If there are employees, they’ll have to be brought up to speed as well. The way order fulfillment is done may change drastically, and you will still have to deal with some scaling issues if your client hits it big.

2. It’s a building process

It may take some time to attract new customers to the online business, and existing customers might be resistant to shop online, at least at first. There will need to be some solid marketing to get the name out there and establish a reputation, which means fulfillment and customer service will have to be top-notch. If your client fears some of their customers might jump ship and go to a competitor once they move online, they’ll have to implement some strategies to retain those customers.

3. There will be more time demands 

Although a business can choose its hours by moving to the internet, it’s also very possible to let the business and personal life blur a little. When a business is online 24/7, it might start to feel like the owner should be, too, and that’s a recipe for disaster. Advise your clients to take measures to make sure they don’t spend so much time tending to the fine details that burn them out.

4. What about refunds and returns?

When customers buy online, one thing they often can’t do is try out a product before they purchase it. As a result, more customers might end up dissatisfied if they find out the product or service isn’t what they wanted or expected. With that in mind, it’s critical to have solid refund and return policies in place to have a better chance of keeping those customers happy.

5. Don’t forget about security

Cybersecurity is an ever-present and growing problem, and not enough business owners take enough precautions when it comes to keeping their business. More importantly, they want to keep their customer data safe. Keeping track of when and if an identity was stolen has become a full-time job for many employers. A major part of setup time should be dedicated to making sure everything from the website, to social media, to apps is as secure as possible.

6. It’s crowded online

With a brick-and-mortar business, your client may be the oldest, most well-known, or even the only such business in the neighborhood or town. But when going online, they’re stepping onto a much bigger stage, and chances are that competitors are already there. To be successful, the owner will have to find ways to get noticed and set the business apart from the others, and that means having a great marketing plan in place by the time the business is ready to open up online.

Hybrid solutions are possible

While you can help your clients sort out the pros and cons of moving online, there is, of course, the possibility of a hybrid solution. The client maintains a brick-and-mortar presence, but also has an online marketplace.

The key to a hybrid solution is to stay organized, especially when it comes to tax and accounting. You can guide your clients with a lot of the points in this article, but you can also take the lead when it comes to sales tax, e-commerce reporting, and many other matters. QuickBooks® and the tax software you use is a large part of your solution. 

If you have clients who have a hybrid sales model, leave a comment below to start a dialogue of best practice solutions.

Tracking your clients’ numbers and sending monthly reports isn’t enough. Yes, the numbers are an important tool for their business. But without any financial literacy, that data remains unopened.

As business owners, your clients want to make a profit. Unfortunately, a percentage of your clients possess financial shame. How the numbers work remains a mystery to them.

Some symptoms of financial shame include the following:

• Fear and anxiety about their cash flow.
• Fail to grasp the meaning behind basic reports.
• Decisions influenced by emotions rather than data.

That’s why a growing number of accounting and bookkeeping professionals regularly meet with their clients. These consultative meetings are a dedicated time to translate the reports. Then, discuss how the data applies to their business.

Be the hero

With advisory services, you get to be the hero. That’s because you’re uniquely qualified to interpret the story behind the numbers.

This creates an opportunity to use your natural affinity for numbers to:

• Determine which metrics to track and reports to run.
• Interpret the meaning behind the data.
• Consult with your clients about the information you gathered.
• Emphasize strategic growth, not random growth.

Julie Barnfather, CPA, co-owner of Manfredini and Barnfather, pairs her accounting services with customized strategic plans. Tracking Key Performance Indicators (KPIs) helps her clients measure their company’s success.

For example, because she was tracking numbers for a print shop, this client learned which types of printing yielded the greatest profits, and over time, the company diversified its services to even out cash flow. During a consultative meeting with Julie, the owners realized they could comfortably make a large investment in equipment.

Julie says, “If you can find a way to measure it, you can make it happen.”

Communicate the value

I frequently speak with accounting professionals about adding consultative services and tracking their clients’ KPIs. Several claim their clients don’t have any interest or they’re too busy. It’s likely the numbers overwhelm certain clients, especially if they experience financial shame.

Be a champion for your clients. Teach them about KPIs, explain what they are, and why they matter. Share an example of how tracking data – even non-financial data – makes decision making easier.

Michele Schina, CPA, co-owner of Beyond Strategy Partners, Inc., and TMS II, LLC, prefers to keep things simple and revenue focused. Her advisory clients seek strategic growth rather than random growth. During quarterly advisory sessions, she reviews the KPIs with her clients and makes recommendations to hit their targets.

Finances, as you know, drives your clients’ business forward. How do you educate your already busy clients about that? Consider sharing a client example that illustrates how KPIs paired with advisory meetings works.

5 benefits of advisory meetings

1. Pinpoint. Clarify the goals for the next 12 months or calendar year. This timeframe is ideal because it’s future based, but not too far off in the distant future.
2. Essentials. Determine the metrics that matter for the business, then track those numbers. Focus on the essential few, rather than the many.
3. Interpret. Meet with clients to give them company insights and how to apply the data. How is your client doing each quarter? Are they moving closer or further away from their target numbers?
4. Presentation. Graphs let clients visualize real-time data. It’s easier for clients to quickly grasp the big picture.
5. Strategic growth. The financials offer insights into a company’s strengths, weaknesses, and bottlenecks. The facts guide decision-making.

Knowing what matters to your clients adds value. Applying KPIs to their business strategy is an advanced move. Now it’s possible to measure her company’s success.

Questions to ask your clients

There’s no need to lecture clients, create pages of data to prove your point, or go too deep into the details they don’t fully understand. These tactics will backfire—pushing them away.

So, what draws them in to know more?

Ask better questions. Get curious about your clients’ future aspirations, current concerns, and why these things matter. Check out this article to see how to lead with great questions.

Start by asking your clients these 5 questions:

1. Where do you want your business to be in 12 months?
2. If you could solve one problem, what would that be?
3. Where are you right now?
4. What do you tolerate, where do you feel stuck, and what causes overwhelm and frustration?
5. How would you know if our work together was successful? What would be different?

The answers tell you what’s top of mind for your clients. Combining advisory sessions with KPIs positions you as a partner in your client’s success. As they say, what you pay attention to expands.

Fine tune your tracking

If you can define it, then you can measure it. Anything’s possible. The range goes from basic essentials to industry specific.

Robert Chandler, founder of Path by Simplex Financials, views KPIs as a measuring stick. “It gives insights into what’s most important and what’s changed.”

Rob suggests you monitor two types of KPIs:

1. Short-term metrics that are specific to the current month.
2. Insights related to long-term goals.

Some metrics apply to all businesses. The general KPIs include:

• Cost of goods sold. This monitors the percentage between cost and profit.
• Insights about productivity, payroll, and performance.
• Advertising, sales and marketing. Inform clients about cost per lead, return on investment, and sales revenue.
• Operating expenses. Discover the efficiencies and the bottlenecks.
• EBITDA. Earnings before interest, taxes, depreciation, and amortization. A company wants to aim for 20%.

Different industries, as you know, care about different metrics. A builder needs job costing and worker productivity, while billable hours and collections are top of mind for law firms. While all businesses benefit from tracking KPIs, determine which industry-specific metrics deeply matter to your clients.

Because your role shifts from technician to CFO or controller, it’s possible to charge more. Chandler says, “Accounting professionals who track KPIs for their clients earn 20-25% more.”

Recommended KPI tracking tools

It’s time to dive into the various tracking tools. Fortunately, several integrate seamlessly with QuickBooks®.

Ask yourself these three questions:

1. How do you plan to use the data?
2. What is your client’s company revenues?
3. Simple or complex? Which approach will get the job done correctly?

Now let’s review the available options:

• Tracking worksheet. It’s a simple way to track specific metrics on your own. The primary cost is time. You’ll need to grab the required data from your client’s QuickBooks. Then, transfer into your spreadsheet since the data isn’t automated or real time.
• Fathom. Customization for more complex tracking. This tool allows you to do industry benchmarking and scenario planning. Starter plan is $44 per month.
• Made for small businesses. Predict is their tool for forecasting and scenario modeling, and is easy to read for clients who like visual information. Futrli Predict for accountants starts at $15 per data connection.
• Path by Simplex Financials. This tool features industry specific metrics and milestone tracking for small businesses. The Health Check unlocks future business opportunities with your client’s business snapshot and industry comparison. The Pro plan starts at $29 per month. Their KPI scorecard offers comparative insights, forecasting and predictive analysis. Complex reports, such as multiple entity consolidation reports, are possible with this tool. Prices start at $21.95 per file.
• Spotlight Reporting. A user-friendly tool which offers the ability to add non-financial KPIs and removes the guesswork from variances. Business plan starts at $25 per month.
• Syft Analytics. This product is ideal for small to medium-sized businesses, offering branded, customized reports. Management reports and valuations are recommended features. Get started with a free basic plan.

Got questions? All of these products will happily schedule a demo meeting to walk you through and answer your questions.

Next steps

Adding KPI tracking and advisory services benefits your clients. The data offers insights about profit margins, productivity, and costs. Your clients go from financial shame to financial savvy.

First, identify three benefits of tracking specific metrics. Then, during your client meeting, ask great questions to discover the priorities. Next, advise on which metrics to track. Afterward, plug it into your tool for real-time insights. Finally, set up the next meeting to review the previous quarter KPIs and any necessary adjustments.

With this process, you shift from technician to consultant. It’s a win-win for you and your clients.

Editor’s note: For more free educational resources for accounting professionals from this author, visit BusinessSuccessSolution.com.

Editor’s note: This article was originally published on the Firm of the Future.

Do you find yourself daydreaming about retirement? How about your clients? Do they discuss their retirement plans with you? Many of us think about retiring, but we fail to adequately plan for it. Instead, we focus on the here and now. Decades pass, especially for business owners. We get to the other side and realize our nest egg and/or our business isn’t worth what we thought or hoped. This is where you, the tax advisor, can shine.

To properly plan for your retirement, you have to determine where you are with your finances—and where you need to be to live the lifestyle you want during retirement. As your client’s tax professional, you already know—or should know—their current financial position, investment strategies, and areas for other planning opportunities.

Helping clients make retirement decisions should come naturally: After assisting them with their annual returns and helping them understand the complexities of their taxes, they should consider you one of their most trusted advisors.

There are several planning topics you can discuss with your clients to facilitate food for thought as they consider their own personal retirement plans—and maybe even your future.

Existing plans and available plans

• Discuss their existing retirement plans. If they are contributing to an employer-sponsored plan such as a 401(k) or 403(b), are they maximizing their contributions? Are they taking full advantage of an employer match?
• If your clients do not have an employer-sponsored plan, discuss with them the options for traditional or Roth IRAs, SEP IRAs, and SIMPLE plans.
• For those who can no longer contribute to a deductible IRA, there is back door Roth option that involves making a non-deductible IRA contribution and immediately converting the contribution to a Roth contribution. 
• Each plan type varies considerably. Advise your clients on maximum contributions and deadlines for funding plans. Maintenance and compliance are areas where you can add value and educate your clients, in order for them to have the tools and knowledge to evaluate their options and plan accordingly.

Life-changing events and beneficiaries

In most instances, the beneficiaries named on retirement plans trump a client’s will. Clients go through life-changing events, and sometimes forget about who they named as their beneficiaries for their retirement plans. Failure to keep a current list may result in retirement savings not necessarily going where they intended it to go.

Pro tip: During your annual tax planning meeting or tax season kickoff meeting, consider confirming with your clients if their will, trusts, and beneficiaries reflect their current wishes.

Account consolidation  

We all have clients who bring us stacks of 1099s from a variety of brokerage firms. Unless your client has an advisor actively managing their portfolio, it’s likely the client isn’t benefiting from having numerous unmanaged retirement accounts. Also, remember that investment advisory fees are no longer deductible for federal income tax purposes, so consolidation of accounts could reduce account management.

Consider encouraging clients to consolidate their brokerage accounts to one brokerage firm. Be sure to educate them on the correct way to rollover funds to avoid accidentally taking an early withdrawal, and avoid triggering an early withdrawal penalty and taxable distribution.

Financial hardships

Let’s face it: The past two years have been challenging for many. If you have clients facing financial hardships, it’s sometimes challenging to convince them that their retirement accounts shouldn’t be viewed as emergency cash.

Help them weigh the pros and cons of taking early withdrawals from their retirement accounts. One option to pursue is the option of taking a loan from a 401(k) or 403(b) plan instead of a withdrawal.

You’re the trusted advisor

It’s easy to find financial advice online, in person, or by word of mouth. However, it’s not always easy to find a trusted advisor who has your clients’ best interest at heart and isn’t earning a commission on the products they sell.

Finding a trusted tax advisor who understands someone’s tax and financial situation—and who doesn’t sell financial products—is a great place to start as a sounding board, as clients begin their retirement planning journey. It’s also a key point to discuss with clients to help them understand your role as an advisor and deliverer of tax advisory services.

Remember the old saying, “A bird in the hand is worth two in the bush?” It’s sometimes better to hold on to what we have instead of risking its loss to get something else.

This holds true for our clients as well. It’s tempting to be so focused on lead generation that we neglect to realize the enormous value in caring for our current clients. Many times, keeping a client costs less than getting a client, and usually provides a higher return on investment through upselling, referrals, and increasing lifetime value.

Chances are you’ve heard about client retention before, so I won’t dive too deep into why keeping a client is better than acquiring one. My goal is to provide you with some tools you can use to start building and nurturing great relationships with your clients.

Use video messaging to nurture prospects, leads, and clients

Check-ins are a great opportunity to build trust and deliver value in a client relationship. But it can be challenging to sound personal in a plain-text email, which is why video messaging tools are becoming popular. These apps let you record videos and send them to clients, either directly or based on automation rules. Here are some popular options you can start using in your firm:

• Bonjoro: Record and send video messages directly to clients, or use Rollups to send video templates to a list of contacts. Bonjoro’s free plan lets you create up to 50 videos with Bonjoro branding, but you can brand your videos by upgrading to their starter plan for $24 per month.
• Dubb: This video messaging platform integrates with LinkedIn features, including comments, messaging, connection requests, Sales Navigator, and Recruiter. As far as pricing plans, Dubb offers a Free, Pro ($32 monthly), and Pro Plus ($80 monthly) option.
• BombBomb: This company has invested heavily in their Use Case Library, showing examples of their product being used for everything from staff intros to appointment no-show follow up. BombBomb pricing starts at $39 per month.

Engage leads and clients with questionnaires and surveys

Are you listening to your clients? According to Gartner, Voice of the Customer tools can help companies get feedback directly from customers that helps them identify service delivery issues, discover new revenue opportunities, and improve brand messaging. From running a poll to determining your best clients, forms are a vital tool for gathering information. Here are a few form builder options to consider:

• Typeform: Who says forms have to be boring? Typeform lets you build beautiful, responsive forms for quizzes, polls, surveys, and more. Typeform pricing plans include Basic ($29 monthly), Plus ($59 monthly), or Business ($99 monthly).
• Jotform: This tool is focused on letting you incorporate its forms into automation workflows by integrating with a variety of tools, including Zapier. Jotform offers a range of plans, including Starter (free), Bronze ($24 monthly), Silver ($29 monthly), Gold ($79 monthly), and Enterprise (custom pricing).
• SurveyMonkey: I’d be remiss if I didn’t mention this tried-and-true form builder that lets you build forms, quizzes, and surveys for free. You can also choose one of their paid plans.

Loom: Explain complicated topics clearly with video

They say an image is worth a thousand words—and that’s certainly true in client communication. Walking through a complicated tax situation within an email would require an essay-sized explanation that your client would likely delete. This is why Logan Graf (worth a follow on Twitter) started using Loom to review tax returns with clients; this is one way to begin turning tax returns into engagements. If you want to send shorter emails, but still get the message across clearly, try these:

• Loom: At MBS Accountancy, we use Loom videos to collaborate on tough projects and walk clients through financial reports or tax returns. Loom’s pricing plans are Free, Business ($10 monthly), and Enterprise (custom pricing).
• Jumpshare: Share files, screenshots, and screen recordings with a link that clients can view anywhere. Jumpstart’s pricing options include Basic (free), Plus ($9.99 per member monthly), Business ($15 per member monthly), and Enterprise (custom pricing).
• VidYard: Engage clients by sharing your videos in email as GIFs in an internal or public video hub, or on social media. Vidyard’s pricing plans include Free, Pro ($19 monthly), Teams ($300 monthly, billed annually), and Business ($1,250 monthly, billed annually).

Automate the delivery of notes and gifts to leads and clients

Because so many marketing activities are digitized, sending personalized notes and gifts can be a great way to become memorable in the minds of leads or stay top of mind for clients. Fortunately, there are many tools available to automate most, if not all, of these activities so you can establish goodwill without sacrificing your time.

• Handwrytten: Customize the font and stationary for your note, include a gift card, and bulk-import hundreds of contacts so you don’t miss anyone. Pricing options are based on the number of cards you send per month, and include Silver ($35 monthly, 10 cards per month), Gold ($83 monthly, 25 cards per month), Platinum ($158 monthly, 50 cards per month), and Diamond ($299 monthly, 100 cards per month).
• Snappy: Reward clients with a gift on each anniversary with your firm, or celebrate a milestone you achieved together. Snappy’s website makes giving easy by featuring gift collections for popular occasions. Pricing is available after booking a demo.
• Sugarwish: There are many corporate gift services, but I thought Sugarwish’s approach was worth mentioning here. You can either select a particular type of gift—cookies, tea, popcorn, candy, coffee, assorted snacks, or dog treats—or let recipients choose their treats. Sugarwish then delivers the gifts to your clients in a custom box, with a gift card or note from you. Pricing ranges between $23 and $78, depending on the size of your box.

Use scheduling tools to remain accessible, but keep your sanity

Part of adopting an advisory-first focus in your firm is emphasizing communication and responsiveness with your clients. Scheduling tools, such as Calendly, allow you and your team to remain accessible to clients without compromising your work schedule or being on calls 24/7. Using Calendly, sync your Google or Outlook calendar, and specify which times and days you’re available.

When clients want to meet with you, they click your Calendly link and choose a time from your available time slots. Despite some people seeing Calendly as insulting, scheduling tools allow clients to schedule appointments without requiring you to engage in the notorious “Does this day work?” dance. Calendly offers a range of pricing options, including Basic (free), Essentials ($10/seat/month), Professional ($15/seat/month), Teams ($20/seat/month), and Enterprise (custom pricing).

Pro tip: Include your Calendly link in your email signature so clients and prospects will be able to find it quickly and easily.

Use an email newsletter to keep clients informed and aware of you

Email is one of the most personal channels of communication. You can use regular email newsletters to maintain trust with clients and deliver valuable information. Using Intuit® Mailchimp, for example, you can design and automate email campaigns visually, and build a website so you can educate clients with valuable content. Because Intuit now owns Mailchimp, it integrates with QuickBooks® Online.

If you’re looking to start a personal brand newsletter, you can use TinyLetter, another Mailchimp property. This free, minimalist email platform is a great way to build a more personal connection with clients or leads.

Every moment is critical when building client relationships

From the first email or call, to ongoing check-ins, each step in a client’s journey with you is an opportunity for you to build value and establish trust. Using any of these tools, you can begin building or improving client relationships by communicating with them in a way that’s authentic and motivated by a desire for mutual success.

Editor’s note: This article was originally published on Firm of the Future.

Filing taxes is a prospect that can make any taxpayer uncomfortable. Even with an accountant to help them, the possibility of hearing from the IRS audit can set anyone on edge.

That’s why David K. Boatswain invested in Intuit® ProConnect’s Protection Plus three years ago. 

“A small upfront price can potentially save a lot of money in the future,” said David. “The cost of peace of mind is invaluable.”

“Protection Plus saves us a significant amount of time by not spending hours organizing clients’ documents and responding to taxing authorities. That translates to saving money.”

Boatswain CPA, PLLC, is a small accounting, audit, and tax firm nestled into the second floor of the Pioneer Building in Brooklyn, NY. With five employees, the firm found Protection Plus to be a smart way to outsource a time-consuming service, while giving the firm an advantage over competitors.

“I use it to provide IRS and state notices review, and response services, as well as audit protection,” said David. “Protection Plus has helped my practice by saving us time responding to client notices and providing an edge to make us more marketable. Clients gain invaluable peace of mind when they know that their 1040 is defended by Protection Plus.”

How Protection Plus works

How much is your time worth? Wouldn’t you rather spend it working with your clients than on endless calls to federal and state agencies?

David would. He and his team work directly with their clients on a variety of business and individual tax matters, as well as offering advisory services. Outsourcing something as time consuming as contacting the IRS or any similar agency enables him to spend more energy and time with his clients.

Protection Plus is simple. The CPAs and enrolled agents (EAs) who represent Protection Plus will stick with an open case for as long as it takes. It does not matter how many calls you for your clients are put on hold for, or how long it takes to resolve an issue. The service is easily available as an add-on service for Intuit ProConnect Tax, Lacerte® Tax, and ProSeries® Tax for just $10 per 1040 filing for your whole firm.

If a 1040 tax filing is flagged by the IRS or a state tax agency, a firm can tap in the Protection Plus team of CPAs and EAs to handle correspondence, give guidance, and resolve issues with tax forms.

The timesaving benefits of Protection Plus are really attractive to David and his firm.

“Protection Plus saves us a significant amount of time by not spending hours organizing clients’ documents and responding to taxing authorities,” he said. “That translates to saving money.”

How Protection Plus worked with a client

With Protection Plus, a firm can choose to facilitate the issue on behalf of a client and/or give the client the information on how to contact the Protection Plus team directly. David emphasizes how simple the process is and one phone call is all it takes. No waiting on hold or endless games of telephone tag.

Most of the time, David provides the information to his clients and has them work directly with the team. However, in one case involving a client, David called in the Protection Plus team for backup when the IRS sent a notice requesting additional documentation. He was truly grateful for Protection Plus’ services.

“A client in the film production industry was requested to produce supporting documentation for the IRS,” he said. “We used Protection Plus to respond to the IRS, and they provided a thorough and organized response that included all the related invoices. The presentation was very professional and even had exhibits. It was an outstanding client experience.”

Protection Plus also provides identity theft services to the firm’s clients, including 24/7 access to identity theft restoration advocates, credit monitoring, and fraud alerts. Protection Plus is a service David and his colleagues see as a necessity, not a luxury.

Provide your clients an outstanding tax experience

If you’d like to learn more about adding Protection Plus to give your clients peace of mind with their returns and save your firm valuable time, schedule a 15-minute consultation with the Intuit team.

The post Protection Plus: Peace of mind for notice resolutions appeared first on Tax Pro Center | Intuit.

As a CPA, EA, or tax preparer, busy season seems to get longer, more stressful, and more complicated every year. Many of you quietly bemoan your clients for procrastinating or being disorganized with their financial documents, but have you ever thought about tax season from the client’s side?

I’ll bet you have many clients who are secretly ashamed about their financial situation, particularly if they owe a large tax bill. So it’s no wonder they don’t want to rush out to you and have the financial equivalent of a root canal.

As your clients’ most trusted tax professional, you are in a unique position to provide guidance and support. After all, clients who feel understood and supported by their advisors can learn to become proactive and well-organized about their money situation. Let’s examine how acting like a financial therapist can transform your practice and your clients’ lives.

Dr. Kristy Archuleta, Ph.D., LMFT, CFT-I, a renowned researcher, speaker, and pioneer in the field of financial therapy, recently mentioned on my podcast that many people consider money a taboo subject. She also said embarrassment about one’s finances cuts across all income levels. Like it or not, as a tax professional, you may be the only person a client feels comfortable opening up to about their financial situation.

“It’s essential to create a safe and non-judgmental environment for them to express their concerns openly,” asserted Archuleta. “Like a therapist, you must listen actively and empathetically to your client’s situation. They may have a lot of anxiety about their tax bill; it’s your job to alleviate some of that stress.”

I agree with Archuleta that you should take the time to understand your client’s financial situation, goals, and concerns before you let your inner “advice monster” come out. Ask open-ended questions to gather more information. Allow clients to share their thoughts and financial anxieties with you before you start making recommendations and offering solutions. Ultimately, clients just want to be heard.

Always start client conversation in a positive way. Just as therapists use the “stroke and kick,” technique to highlight a patient’s progress before addressing problems, Archuleta said we can use a similar approach. “Focus on the good things that your client accomplished during the past year, which led to a higher income (and thus, the higher tax liability.”

For example, if your client is an entrepreneur who had a successful year, remind them that their hard work paid off and that they should feel proud of their accomplishments. By emphasizing the positive aspects of their financial situation, you can “soften the blow of the tax bill,” she said.

I have found it’s always helpful to communicate the tax bill in a way clients can understand. We often forget how complicated the tax code is, and that their eyes easily glaze over when you dip into jargon. Instead, break down the numbers and explain patiently how their tax bill was calculated—and how they can reduce their tax liability in the future by making estimated tax payments, contributing to a retirement account, or by making more charitable contributions. Educating your clients empowers them to make better informed decisions about their finances.

When working with couples, it’s crucial to recognize that both partners may have different reactions to a tax bill. According to Archuleta, each spouse may have different ideas about how to spend the money they have saved. They may disagree about whose financial decisions or under-withholding contributed more to the tax bill. By acknowledging both spouse’s point of view, you can help them come to a mutual understanding about their financial situation.

CPAs can also borrow a page from therapists to address underlying emotional issues that may be contributing to a client’s financial stress. Research shows many people’s relationship with money stems from the money messages they received growing up. For example, your client may have a fear of scarcity or believe they are not worthy of financial success. By identifying and addressing these underlying beliefs, you can help your clients feel more empowered and confident about their financial situation.

You have a unique perspective on your clients’ financial lives. Create a safe and non-judgmental space for them to share their concerns without being judged. By integrating empathy and emotional intelligence into your practice, you can build stronger relationships with your clients and provide them with the support they need to achieve their financial goals.

Key takeaways

• Clients just want to be heard. They want a safe space where they can air their concerns about money without being judged or lectured to.
• Take the time to listen closely to your client’s financial concerns before unleashing your inner “advice monster.”
• We can learn to use the same “stroke and kick,” approach that therapists use.
• When working with couples, remember that each partner may have a very different relationship with money.

The post How to communicate large tax bills to your clients appeared first on Tax Pro Center | Intuit.

You know some of your clients just.need.to.go, but you don’t know how to let go of them. Some are difficult to deal with, but you don’t have the words to disengage them graciously. Some clients are not profitable, but you allow them to hang on because you don’t have anywhere else for them to go, while others were among your first, helped you launch your tax and accounting practice, and you feel loyal to them. There are some you simply don’t enjoy having, but you need the revenue … and then there are the “little old ladies”—you just don’t have the heart to let them go.

Does this sound familiar? If so, your practice may be cracking under the weight of beyond-capacity work. Your staff is overworked, and you worry about how much longer they’ll hang on. You’re overworked, but as the owner, you don’t get to complain.

You want desperately to get off the hamster wheel, but just can’t see the path to working less, especially when clients = revenue—and you need the revenue to pay your staff to do the work.

It feels like a trap.

It seems counterintuitive, but the pathway is through disengaging clients. Disengaging is the only way out.

Won’t I just be trading clients to maintain revenue, which will keep workload the same?

As your tax and accounting practice grows and changes, so do your clients’ businesses. Some may outgrow you, just as you may outgrow them. The goal is to shed the ones you’ve outgrown, and replace them with Ideal Clients who have a higher margin and will be less needy; in turn, this will reduce your workload.

Your practice benefits when you disengage non-fit and beyond-capacity clients. You have more time to create and deliver value for your best clients. You have time to optimize systems, train staff, and get more of your time back.

The Five Bucket Challenge

Disengaging clients is a simple, step-wise process. Beginning with your client roster, create five columns, and in less than five minutes, put each client’s name into one column:

1. Definitely Keep.
2. Likely Keep.
3. Not Sure Yet.
4. Likely Let Go.
5. Definitely Let Go.

Avoid having perfect answers. Rather, you want to generate a clear list of your very best and worst clients.

Begin with a segment of the worst clients. Most of the accountants I work with do a preliminary round and disengage 10%. We want to get a feel for the response, and deal with the small handful of clients who have remaining needs that need closing out. We use the response to improve the template Disengagement Letter (see editor’s note below) and other internal systems.

Three weeks later, we do a second round of disengagements, which typically results in disengaging another 10-15%.

But you’re crazy to cut all that revenue!

While we are disengaging clients, we are also talking to the best clients about their needs. We are designing higher-value, higher-priced, higher-margin services to offer them. The response to this a nearly universal: “How soon can we start?!” When offered a tiered option of higher-value services, most clients will choose the middle option; higher-margin revenue is coming when you have time and space to create it.

Repeat the process from both sides

Reshaping a client roster so you are working with clients you enjoy and have a high margin can be a 4- to 8-month process depending on how far beyond capacity you’ve already gotten. It may require four rounds of disengaging to allow time to convert your existing best clients into higher-level options. Be sure to always manage to cash flow to stay out of money scarcity.

You mean I’m going to cut 40% of my client roster?!

Maybe. Remember that if you are working a 70-hour week, disengaging 20% of your workload still has you working a 56-hour week.

There is no single right way to do it.

I worked with a tax-heavy CPA who had 1,000 clients. Over eight months, she disengaged more than 300 clients. She now has 240 hours less work on her plate, and her take-home pay doubled because she had capacity to take on high-margin advisory work.

Another client was frustrated doing in-the-weeds tax; she wanted to be doing higher-level fractional CFO work for a hand-selected set of business owners. Over six months, she disengaged more than 600 annual tax clients and kept a few dozen of her best who wanted a fractional CFO. Her revenue and take-home pay are the same, but she now leaves the office at 5 pm and no longer works on weekends.

But that sounds risky!

Some accountants think of themselves as risk averse, but consider risk from alternate points of view:

• The too-busy accountant risks not providing the result the client has paid for.
• The overworked accountant risks burning out and throwing in the towel on one of life’s biggest assets.
• The overburdened accountant risks losing time to repeat inefficiencies and spinning.
• The stressed accountant risks their health.
• The inaccessible accountant risks losing their best clients.
• The accountant who won’t get rid of bad clients risks losing their best clients.
• The heads-down accountant risks being unavailable for better opportunities.
• The people-pleasing accountant risks being unhappy in their accounting firm.
• The accountant who refuses to fire rude clients risks staff quitting.

The result? Beyond-capacity accountants are running a risky business!

What could go wrong?

It can be tempting to use “driving up the price” as a way to push clients out. Be cautious of using price increases as a disengagement strategy.

If you don’t know how price sensitive your clients are, you risk increasing your prices with most of your clients staying. This may improve revenue, but it will not solve the overworking problem.

Where do I start?

1. Determine your firm’s existing capacity.
2. Determine the actual amount of work/time currently required to serve existing clients.
3. Fill out your Five Bucket Challenge.
4. Use the Template Disengagement Letter to disengage clients who exceed capacity.
5. Meanwhile, begin offering higher-value services to a segment of B clients.
6. Observe results of both and adjust as needed.
7. Repeat until you have reshaped your client roster to your liking.

You can run a calm, high-margin accounting firm. It only takes committing to the process of reshaping your client roster.

Editor’s note: Geraldine Carter has kindly provided sample template engagement letters as a downloadable PDF or at a Google Doc link.

The post How to disengage clients right after tax season appeared first on Tax Pro Center | Intuit.

Whether it is just after busy season or any other time of the year, tax and accounting professionals like working with clients who take an active interest in their tax and financial matters. And clients like it when their tax advisor is proactive. According to the 2022 Taxpayer Insights & Intelligence Brief, 79% of clients are willing to pay pros more if it results in better outcomes, while 69% of clients want more advice from their tax pro.

I asked members of the Intuit® Tax Council this question: “I like it when my clients …” Here is what they had to say.

Renee Daggett, EA—AdminBooks: I like it when my clients proactively communicate with us, follow our recommendations, and upload all necessary documents on time. Effective communication and timely submission of required documents help us provide top-notch service, and ensure that we can exceed our clients’ expectations. Working collaboratively with our clients helps us build strong relationships and achieve successful outcomes, while staying true to our mission statement of education and providing peace of mind.

Al-Nesha Jones, CPA, MBA—ASE Group: I like it when my clients allow me to play my position. When a client comes to us and says, in their own words, “I’m an entrepreneur and want to spend more time in my genius zone; I want to partner with you so that you can operate in your genius zone as my accounting and advisory partner,” I immediately know something great is about to happen.

We are most helpful to our clients when they are ready to embrace a partnership and release the hold that social media advice has on so many business owners. They’re open to suggestions and willing to make improvements, and that means we’ll be able to make a true impact on their businesses and their lives. When they’ve reached this point, we’re positioned to help them create more capacity for what brings them joy. This person is about to improve the strength and sustainability of their business. Great things are in both of our futures!

Tatiana Tsior, CPA, MBA: I like it when my clients value their time more than anything else and trust me to take care of them, while paying me a fair fee.

Timothy Wingate Jr., EA—G+F Business &. Financial Consulting LLC: I like it when my clients get me the information I requested within three days. This makes my life and my team’s life easier. It also allows us to serve them well with more up-to-date information. Part of this means uploading the information into the portal, and not sending me text messages with pictures.

How would you complete the sentence, “I like it when my clients …” Leave a comment below and share your thoughts with your colleagues.

The post I like it when my clients … appeared first on Tax Pro Center | Intuit.