Tax Strategies & Preparation Articles

5 Tips in Boosting Your Practice during the Economic Slump

Has your business taken a turn for the worst?  Or perhaps you’re just noticing a decrease in your practice’s profits.  Regardless of the reason, the economic slump is causing many business owners to revisit their financial standing to see how they’re faring.  The following five cautionary steps can make or break your business.

1. Write/Update your marketing and business plans

If you haven’t written one yet, shame on you.  We’re just kidding.  But it’s never too late to benefit from solid business and marketing plans.  And if you have one, an annual revision is in order.  Your business and marketing plans will assess your current standing and consider how to improve things this year.  A clear vision and a plan to accompany it will enable you to keep on track.

2. Meet with employees

If you have employees, it’s good to present your business and marketing plans to them and ask for input.  You may be surprised at the quality feedback you receive.  Also, depending on your situation, you may need to reevaluate just how much each employee contributes to your business’s profitability.  At some point you may need to let employees go in order to see your practice through a successful turnaround.

3. Meet with clients

Your clients may be privy to rumors that your business is failing.  It does you no good to ignore the rumor mill.  Meet with clients and be honest with them about your business and any steps you’re taking to rectify problems.  In fact, this is a good time to ask clients for suggestions.  Taking this one measure may prevent them from leaving your practice to look for a more stable accountant.

4. Streamline your expenses

When business gets bad it’s time to look at your spending.  Can you cut back and leave more money in the business?

5. Invest in your business

This may be the best time for a change in course.  And investing in your business may be just the answer.  Consider earning adding complementary services and getting professional marketing help.  Both will inject your business with a profitable infusion that’s sure to help you ride out the recession in comfort.

The Professional Bookkeeper Program

As a tax preparer, we already know that numbers come naturally to you.  Now all you need to do is find your inner accountant.  If your client roster currently contains small business owners, becoming an accountant would prove more lucrative than you can imagine.  These individuals need help analyzing their financial data so they can make more profitable decisions and achieve true success.  They’ve already trusted you with their financial information so it wouldn’t take much to convince them that you could also work as their accountant.

The four modules in this training program will enable you to target your services for the very valuable small-business market.  From creating books from scratch to growing your accounting practice, this program has it all.  Not to mention, you’ll receive 6 months of free follow-up support and a customized website for your business.  Upon completion you’ll also be able to test for certification as a Professional Bookkeeper (PB), a designation you can include in all your marketing materials as evidence of your expertise.

The Universal Practice Builder Program

Your business will never become profitable if you are unable to successfully market your services.  For over 25 years Universal Accounting Center has trained financial professionals like you in small business accounting.  In all our years working with accountants, bookkeepers and tax preparers we’ve come to understand that most don’t know how to promote their services to this niche market of small businesses.  Fortunately, we do.  Not only that, but we know which strategies and approaches will grow your business to the point where you will become so busy you may just have to start turning clients away.

When you enroll in the Universal Practice Builder (UPB) Program, you’ll receive a guarantee of $30,000 in new annualized billings in only one year, 12 marketing strategies that you can implement immediately, and a process which can produce 15 to 25 qualified leads per month.  And that’s just the beginning.

If your business is failing, don’t despair.  The best thing you can do to advance your practice is take action!   Invest in yourself and your business to increase your profitability now.  Enroll today!

You should periodically increase your prices in order to remain competitive and profitable.  And now that we’re in the middle of a recession you may be considering a reduction in your current fees.  However, don’t let that be the motivating factor.  While you should never be embarrassed by your prices, there are those rare instances when you should lower them.  In Paul and Sarah Edwards’ book Home-Based Business for Dummies, they provide 5 circumstances when lowering your prices just might save you in the end.

1. You’ve overpriced your services.

This can easily happen, especially when first starting your business.   We strongly recommend that you set firm prices upfront.  But everyone makes mistakes, and you can easily revisit your pricing list in order to set more reasonable fees if you find you’ve overpriced yourself.

2. Your expenses have decreased.

You can pass your savings on to your clients, if you would like.  Or you can see this windfall as your reward for cutting your own expenses.  Either choice can benefit your business.

3. You want to reward long-term clients.

There’s no doubt about it; this makes for good customer service.  You want to retain long-standing clients and offering them reduced fees for certain services may be one way to ensure that happens.

4. You want to get new work.

This is an age-old incentive in attracting new clients to your practice.  By offering a one-time discount you can build your client roster rather quickly.  Also consider offering your clients a similar discount for referring any of their friends and family to you.

5. You want to extend a professional courtesy.

Many professionals offer colleagues a special discount.  You might consider doing the same.  Perhaps you might do this for other home-based business owners.  While you may lose a little money upfront, consider all that you might gain in referrals later.

Cutting prices, when done for the right reasons, can be good business.  If you have considered reducing your fees as a result of the recession, think again.  There are better reasons for discounting your services as listed above.  When implemented properly you may find yourself with even more clients as a result.

UAC Provides You with Valuable Business Tips

If you’re interested in more business-building advice, you will greatly benefit from UAC’s video library which contains all the following DVDs:

If you are looking for ways to better promote your business, consider our DVD, “The Art and Science of Getting Clients.” You’ll learn how to access effective marketing techniques that can help you grow your tax practice by $30,000 to $125,000 per year!

But don’t stop there.  Consider learning about expanding your business by adding bookkeeping services to your menu.  Learn more about our Professional Bookkeeper Program and order our DVD “Introduction to the Professional Bookkeeper Program.”

And if you do that you’ll also want to know how to “Start Today and Have Your Own Bookkeeping Service”; this video will let you know how you can build your own accounting practice.

Finally, learn how to introduce your services to potential clients by using the “‘Yes’: Sample Marketing DVD.” Use this to role play, watch with clients or pass out to prospective clients.

If you order these DVDs the worst-case scenario is you will add valuable materials to your professional library for a very small cost.  But the best-case scenario is that you will change the course of your career and enjoy a lucrative business with an unending stream of clients who find your services to be priceless.  Don’t wait to boost your business potential.  Order our special DVD 4-pack today!

Resources

Edwards, Paul and Sarah.  Home-Bases Business for Dummies.  New Jersey: Wiley Publishing, 2005.

Letting People Know You Really Are in Business

Some are under the misconception that because you work from home, your time is up for grabs.  You may get calls from friends and family to babysit, run errands or just talk on the phone because they don’t yet value your time as a business owner.

But as you already know, time is money, and you’re not home because you’re independently wealthy; you’re home because that is the most economical way to run your business.  In order to communicate that with your family and friends, you need to establish firm boundaries that let them know you’re serious about your tax practice.  Once you do, you’ll find that others are more respectful of your time.

The following 5 tips will help:

1. Set regular business hours.

Whether you work from 9 to 5, from 6 to 2, or 7 to midnight, you need to establish regular business hours, and then communicate those business hours to friends, family and clients.  Once you do, it’s important that you honor them, politely informing personal callers that you’re on the clock and would happy to return their calls later.

2. Use a business line.

Depending on your situation, it may be easier to avoid those personal calls altogether by using a separate business line.  Do not answer your home phone during your regular business hours, and don’t distribute your business number to friends and family without telling them it is only to be used in times of emergency.

3. Be honest.

If someone places a personal call during business hours, remind them that you’re working.  The only way you’ll get people to believe that your home business is a priority is if you remind them.  When you deviate from the boundaries you set, by casually talking to friends when you should be working, you’re sending the wrong message and will continue to have people interrupt you when you could be making money.

4. Just say “no.”

If someone asked you to watch their kids while you were scheduled to work at a full-time job, you wouldn’t hesitate to say no.  Just because you are your own boss now doesn’t mean you have to say “yes” every time someone calls asking for a favor.  While there’s nothing wrong with helping a friend out now and then, if you get into the habit of agreeing to help everyone, you’ll have no time to invest in your business.

5. Ask for support.

Let your friends and family know that you want your business to succeed and will need their help to see it happen.  Requesting their support may help them feel responsible, in part, for your success.  You may find that your request will be honored simply because you asked for their help.

Your business can succeed as long as you make it a priority.  Once you establish firm boundaries with family and friends, and ask for help when necessary, you’ll find that they will respect your intentions and perhaps become your greatest allies.

For other resources in helping you establish a thriving tax practice, visit Universal Accounting Center.