Question: My problem with the internet marketing is that it's hard to tell how many clients it brings you. Is internet advertising really worth it for a tax professional?

I believe that Adwords is probably the most effective advertising that a tax preparer can use-- and it's cheap and easy. Anyone can set up their own Adwords account-- it's simple--you don't need to pay someone to do it for you (although I will admit that I have set up Adwords accounts for some tax pro friends of mine who were computer illiterate).

The big issue with using Adwords is usually the tax professional's website-- NOT the ad. If you pay for internet advertising, your website better be on-point. What I mean is that the website should be clean and have your phone number and other contact information clearly on the website. And a picture and company bio really help, too.

Now, when internet shoppers click on an Adowrds link, they usually peruse your website for only a a minute or two. And then they will call. If you don't have a live human being answering the phone, then that internet customer usually goes on to the next internet ad.

This fact pattern isn't the same for referrals-- a referral will often leave a message on an answering machine, or wait a few days-- because they were referred by a family member or a friend.

But an internet ad referral usually won't try very hard to get ahold of the preparer. In order to get the most out of internet advertising, you need to have a live person answering the phone (even if it's just a virtual secretary) and your website has to be clean and have your contact information clearly stated. Also, if you ad states that you have some sort of specialty, like estate taxes, the website should have a dedicated page that explains your specialized expertise.

Add Comment
 
 
Question: How easy is it to use AdWords to promote my practice?

Answer: Easy! You can start with a minimum budget of 50.00 per month, which you will only actually use is people "click" on your ads.

The trick is getting people to find you. And it's easy, as long as you target your market correctly. I'm going to give you an example.

Let's say you set up your AdWords account and you want to target same-sex couples, which are a lucrative tax client segment. You practice in California, and you only want to do California residents.

Fine. You set up your adwords account to ONLY run ads in California, and you make sure that your keywords are highly effective, which means that you DON'T use basic keywords like "tax prep" or "CPA". These will just drain your ad dollars because they are not targeted to your niche.

So, you think about it, and you use keyword phrases like, "taxes for Gay couples" "taxes for same-sex couples" "tax returns for gays"-- stuff like that. Thinking of the keywords is the hardest part. It took me a few months to get all of them, and I just log into my adwords account when I think of a good one and add it.

There are a lot of good books and articles out there on effective Adwords marketing, and you can find them online and even through Google's Adwords dashboard (they have training videos, etc). You can do it all yourself-- don't pay anyone to do it for you. It's easy. 

Good luck! (By the way, I am not affiliated with Google in ANY way-- I just really like their marketing tools and I use them myself).
1 Comment
 
 
I hang out a lot at the TaxAlmanac message boards, which are a great online resource for tax pros. A recent discussion was about tax marketing newsletters-- the ones that are targeted at CLIENTS.

Tax marketing newsletters that are designed for clients should be short, to the point, and they should be in plain English. You can create your own marketing newsletter simply by signing up with Constant Contact or iContact (or any of the other email services). I wouldn't never send them out using postage/paper-- it's expensive and they would get thrown away as junk mail.  I would do an e-mail newsletter only. In fact, I signed up for a newsletter service last month to launch this tax marketing newsletter (aimed at tax pros, not clients) and it was easy.

The only thing I didn't like was that the "sign up" HTML that goes on my websites cannot be personalized to a target audience as much as I'd like. It costs about $15 per month for the service, which is way less than I would pay if I was paying for postage on a paper newsletter.

The real value of the newsletter is the mailing list-- the conventional wisdom behind this marketing tactic is that you can presumably contact hundreds of clients QUICKLY with a single e-mail about important tax law changes, and perhaps 5% will contact yo with a question that could lead to billable hours or a tax consulting appointment of some type. And there's always the added plus that your e-mail newsletter will be forwarded (by the client) to a family member or a friend, and then you have an instant referral.

For example, in the last newsletter, we included a little blurb about our enrolled agent exam study guides, which generated lots of web traffic to the PassKey Publications website. It was an easy way to get the "message" out there without being intrusive or using aggresive sales tactics. You can do this, too-- in your own newsletter, by including links to your website and list of service offerings.
Add Comment
 
 
I have written extensively on tax practice marketing and I will tell you this:

When trying to build a client base, THERE ARE NO SHORTCUTS.

You have to do the work yourself, which takes time. From my interviews and my own experience, the best (and most cost effective) marketing is:

1. Google Adwords (targeted to your region or area of expertise-- you have to have a website, of course)

2. Blogging, Facebook, Linked-In and other social media-- these are a huge time drain, but they are also free, and a great way to get your name out there if your budget is very limited

3. I've heard very good things about www.BookkeepingHelp.com as a referral source from more than one practicioner. Someone let me know if you've had a bad experience with them, because I've heard nothing but good things.

4. If you offer bookkeeping, the Intuit "ProAdvisor" website is an excellent referral source. Sure, you have to update your ProAdvisor certification every year, but they give you a free website and it gets millions of hits every year.

5. Don't be lazy about online marketing. Get a nice photograph, and try to keep your online profiles updated. The last thing you want is a potential client to find you on the web and they try and call and e-mail you and none of the contact info is valid.

We started a free tax marketing newsletter last month-- it's free to sign up and you can unsubscribe at any time. We will pay for short articles, so please feel free to forward your marketing tips to me, because I really want input on what others are doing.
1 Comment
 
 
In other news, my company is launching a tax newsletter called The Tax Marketer. . We purchased the domain and joined Constant Contact, which is an email marketing service.
 
We have a nice group of tax industry e-mail contacts and the newsletter was a natural progression. It took us about two days to get the website up and running, and we've spent quite a few days getting the first newsletter ready. 

We've been thinking about doing a newsletter for over a year, and it was time. Anyone that that owns a small business, including a tax practice, should really consider doing it-- newsletters are a great way to keep in contact with your customers, and it allows you to share information with them that is timely and useful.

The newsletter is free, and you can sign up at: http://www.taxmarketer.com/
Add Comment
 
 
Many new tax preparers try to build their client base by purchasing an existing practice. There are many questions that you must ask if you are thinking about buying an existing tax practice.

Are the clients older? Is the practice growing? Is it a good mix of business and individual tax returns?

Think about the TYPE of client you are trying to attract. Do you want and older, stable client, retired, perhaps, so you can offer financial planning and securities? Or do you prefer a younger client, with children, so you can encourage referrals and small business growth? Do you prefer a client base of mostly small business entities?

Schedule C businesses, or S Corps? How about some C Corps thrown in?

You must also find out about the average return fee, and how aggresive the preparer was. The clients may not be happy when they find out that you aren't as comfortable with their aggressive deductions.

Ask the seller about the history of his practice, the reason for the sale, and the hours that he or she normally worked. Don't be shy. And if you feel that the seller is evasive, it might be a sign that it's time to walk away.
1 Comment
 
 
You can generate referrals from your existing clients. Are your clients aware of the different services or products you provide? If they aren’t, how will they know when they need your services or products that they haven’t used yet?

How will they tell someone else about your services and send you referrals? Good communication means increased revenues. No exceptions. It’s a very simple principle, yet it’s rarely put into action consistently and effectively.

Every time you communicate with your clients, you have an opportunity to strengthen your relationship with them, foster loyalty, and encourage them to think of you often. That translates into more business from your clients and more referrals too.

There are several effective ways to keep in touch with your clients, and a combination method is usually the most effective: Send out personalized greeting cards on special occasions.

4. Schedule a consistent client contact program with your favorite clients, and make at least one call per day just to check in with them to see how they’re doing and say hello. No matter which methods you choose, be sure to tell your clients how much you enjoy working with them. Mention that you would love more clients just like them. (Do this only to your best clients, of course.)
 
Let them know that you’d welcome any referrals they send your way.

Christy Pinheiro is the co-author of the Passkey Publications Enrolled Agent Exam Review Series, as well as the EA Tax Consulting Handbook, a book all about marketing just for enrolled agents.
Add Comment
 
 
The bookkeeping and taxation field offers so many rewards. Job security, the ability to work directly with clients, and the benefits of continuing education are all positive aspects of this growing field. Even students and stay at home mothers can generate a great income with part-time bokkeeping or tax preparation.


Bookkeeping is an easy business to start at home. Working just 20 hours a week can generate a nice income, and many professional bookkeepers establish a few good clients and live exclusively off their part-time income. Some bookkeepers even provide tax services to their clients in addition to regular monthly bookkeeping, because tax preparation is so much easier when you have a client’s books in order.

The choice to become an enrolled agent, CPA or tax attorney is a personal one, but tax professionals that choose one of these professional designations have so much more flexibility in the direction of their practice. Audit Defense and IRS Debt Negotiation are two very lucrative practice niches that can offer real revenue during the off season. There are even some tax practices that cater exclusively to this market. There are numerous resources on the internet, and a few good books out there for bookkeepers just starting out in the business.

For someone who has little experience, a good place to start would be a local college course. Community colleges offer introductory bookkeeping courses that are informative and cheap. Most of the time, you can take the courses online, and many community colleges offer certificate programs that you can finish in a year.

You can consider becoming a Certified Bookkeeper through the American Institute of Professional Bookkeepers (The AIPB). There is no degree requirement, but you must pass a four-part exam. Certification ensures that the bookkeeper has proven skills and knowledge in the field of bookkeeping. The exam even includes a section on fraud prevention. For certification, exam candidates must have at least two years of bookkeeping experience, pass the exam, and agree to adhere to a code of ethics. Bookkeepers that pass this certification program enjoy greater respect and higher pay. The Department of Labor, Bureau of Labor Statistics’ Occupational Outlook Handbook, recommends certification for bookkeepers.

Current accounting students and tax professionals should all seriously consider the CPA or EA designation (or both!). The Enrolled Agent designation does not have a degree requirement, but requires the candidate to pass a three-part examination and a background check. There are numerous books that can help you become a freelance bookkeeper, including, "How to Start a Successful Home-Based Freelance Bookkeeping and Tax Preparation Business." The flexibility and professional rewards of these certifications are worth the effort!
Add Comment