Each year, tax time is an opportunity to expand your accounting firm’s client base. How did your firm fare this year? That is a question firms should consider as they reflect on the tax season.

Leading up to tax time, there are potential clients ranging from individuals to major corporations who may be on the hunt for a new tax preparer. Firms not only need to be ready when the opportunity comes knocking, they must also understand the proactive steps they can take to drive greater growth and profitability through an expanded client base.

According to a 2021 study from the Thomson Reuters Institute, tax professionals are looking to return to a more normal working environment and a return to some of the strategic priorities they had in mind pre-pandemic. These priorities, however, have been modernized to reflect the experiences of working through the pandemic and adapting to the new world. This includes growth — more clients, more revenue — and bringing more value to the client relationship.

What’s important to keep in mind, however, is attracting and maintaining the right clients.

[…]

“The clients you may want to consider firing are the ones that take up too much time. If 80 percent of your time is spent managing clients who represent 20 percent of your revenue, getting rid of that 20 percent can free up a lot of time that is better spent on better clients,” said Greg Pope, Vice President of Marketing at SurePrep. “The other [clients to consider firing] … are the ones that contribute to frustration levels. Eliminating the frustration is a meaningful benefit to the firm.”

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This link directs to the full article on thomsonreuters.com.

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