Building a practice: Marketing ahead of tax season

Government mandates may require taxpayers to do their taxes, but that doesn’t mean they have to do them with you.

As the start of tax season on Jan. 23 approaches (see our story), tax practitioners are finding the best ways to reach out and pull in the best clients they can.

Speed still counts. “Mainly making sure all marketing materials and organizers get out earlier,” said Brian Stoner, a CPA in Burbank, Calif. “Last year, items were delayed into January, which was too late.”

Messaging for Top 25 Firm Armanino LLP has centered on tax legislation and compliance issues after passage of the IRA and the potential power shift in Congress, added demand generation manager Laura Metz.

As tax laws have a sea-change every four years or so and clients’ accountants start retiring in big numbers, one familiar advertising method is becoming the automatic go-to for tax preparers. 

“My new clients come from referrals from my current clients, so using CRM tools and building the relationship with my current clients have kept these doors open,” said Kerry Freeman, an Enrolled Agent at Freeman Income Tax Service, in Anthem, Arizona. 

“Our referral base of attorneys, financial advisors and clients are providing us plenty of work,” said Scott Kadrlik, a CPA and managing partner at Meuwissen, Flygare, Kadrlik & Associates, in Eden Prairie, Minnesota. 

Referrals are a low-cost, low-effort way to get additional clients, wrote Edward Mendlowitz, a partner at Top 25 Firm WithumSmith+Brown. The best referrals are long-time existing clients, new clients, fellow professionals and alumni.

“Many referrals won’t suddenly appear unless you ask for them,” Mendlowitz added.

Marketing this season will depend on the stage of your practice, not to mention the long-awaited loosening of pandemic restrictions.

“If you have a mature practice, you’re not spending any time or money on marketing because referrals from existing clients and allied professionals will be more than sufficient,” said Larry Pon, a CPA in Redwood City, Calif. “If your practice is new and you’re looking for clients, now’s the time to market. The most cost-effective and time efficient way to do this is to market to your existing clients and referral sources such as financial advisors, realtors, and mortgage brokers. Now that we can see people in real life again, take them to lunch.”

Clients at loose ends?

More than 300,000 U.S. accountants and auditors have left their jobs in the past two years, according to news reports, and fewer college students are coming into the field. The exodus has appeared not only in baby boomer retirements but in younger accountants, as well.

Pon said he has spoken to practice sales brokers who confirm a record number of retirements. “I think the average age of a tax professional is 58. I know many tax professionals in their 80s,” he said. “The practice brokers are looking for buyers. This may be a cost-effective way to build up a practice in a quick fashion. Organically growing your practice can take a great deal of time and energy.”

“There’s no need for marketing, as our phone is ringing off the hook with potential new clients,” said Gail Rosen, a CPA in Martinsville, N.J. “They’re coming to us because many preparers have either retired or passed away, or they have tax preparers who don’t communicate on a timely basis.”

“I find that once the taxpayer gets the notice to disengage due to [a retiring preparer], they go to their friends and ask,” Freeman said “Again, building a strong relationship with my clients: They are the best advertisers for my practice.”

Some find such clients aren’t desirable. “Retiring tax preparers usually have retiring clients that they have worked on over a lot of years. These clients are on a maintenance-only type of service and are not good solid business clients that we like to add,” Kadrlik said.

“I don’t want any additional clients that are just looking for tax services and want to utilize our services just during busy season,” said Robert Seltzer, a CPA at Seltzer Business Management in Los Angeles. 

Teamwork

“When your preparer retires, even if a succession plan is in place, that can leave a void,” Metz said. “Whether you’re outsourcing tax service capabilities or identifying a specific tax need, you should find a partner.”

That’s one of the recommendations from Quickbooks in getting referrals (with generous helpings of patience and persistence):

• Profile your ideal client. What type of client do you serve best? What are their pain points and goals? What problems do they need your help solving? Is it a gig worker? A high-net-worth client? A small business in a specific industry?
• Build a referral team. Find six to eight people who offer services complementary to yours but who don’t compete with you. Attorneys, estate planners, insurance agents, IT providers, financial planners and payroll providers are good places to start. Pick people who regularly come into contact with your ideal client. 
• Tap current and past clients. Contact your clients regularly to see how they are doing and how you can help them. Send your clients a handwritten note thanking them for their business. Always ask them if they know anyone who can benefit from your services and ask them to complete an online review — the cutting-edge, tech-enabled modern form of the referral.