Tax Strategies & Preparation Articles

Inspire Client Loyalty While Increasing Your Client Base

Companies pay Joe Tamargo, a New York resident, to permanently tattoo their advertisements to his body. Now before you call him up to ask that he add your name to his forehead, consider that building strong relationships with present clients might be a little like sending them all out with your fliers in their pockets; if your clients are happy with your tax services, they will not only feel good about working with you, but they’ll also refer all their friends and family your way. So how do you build good client relationships? Here are five tips to building healthy and profitable relationships with your clients:

1. Be selective
When you first started your business you were probably willing to work with any tax-paying American with a pulse; the last time I checked that included everyone, regardless of flakiness, criminal history and/or poor credit ratings. Now we’re not encouraging you to run background checks on your clients, but you should use common sense before adding someone to your client base. To run potential clients (PC) through the selection process, ask yourself the following:

• • Is your gut saying “no way”? [Note: This should trump everything else. If your gut says no, we suggest you listen.]
  • Does the PC balk at your rates?
  • Is the PC trying to work a deal, getting more from you than you typically charge?
  • Does the PC want to exchange services rather than pay your fees?
  • Does the PC appear needy or exceptionally high maintenance?
  • Does the PC want to defer payment?
  • Is the PC a closet tax expert who wants to do a lot of the work him/herself with you working as a tax consultant?
  • Is the PC on “the rebound,” looking for a new tax preparer following a failed relationship with another one?

While answering “yes” to one or two of the above questions does not necessarily mean you have a high-risk PC on your hands, answering “yes” to three or more questions just might. Be cautious and realize that just one high-risk client can cost you a lot of time and money in the end.

2. Exude confidence and enthusiasm
People want to work with a tax preparer that knows what he/she is doing and is excited about doing it. If most of your interactions with clients are positive and upbeat, they will generally feel good about working with you.

3. Define relationship and expectations
Many of your clients may not have worked with a tax preparer before and are unsure what to expect. The rest have worked with tax preparers and may be running on old expectations. It’s important to have a preliminary meeting where you define the relationship and your expectations, taking special note of what your clients expect from you. You may need to negotiate some of these expectations so that both you and your client are satisfied. To learn more about defining those expectations, read the article “Defining Expectations with Your Client: Starting off on the Right Foot” in next week’s newsletter.

4. Communicate
Every healthy relationship, regardless of whether it’s with a spouse, a neighbor, a cousin, or a client, depends on good communication. Be sure to communicate with your client regularly. You may want to send your client monthly emails, updating them on their account and what you’ve been doing for them. Also, return calls and emails in a timely manner; your client should expect to hear back from you and not be disappointed.

When you provide your clients with reports or tax returns be sure to explain them or, if they prefer, answer any questions they have at their convenience.

5. Help clients come out on top
Going above and beyond the call of duty will make any client happy. Recognize that your client wants to save as much money as possible. At first they may think you’re an expense they can’t afford, but if you show them how much money you can save them in the end, they’ll be more than happy to pay your fees.

When you first start your tax practice you may think success comes once you have a solid client base. While getting a few good clients is a good start, your success will be determined by how you maintain those relationships with your clients; when you build healthy relationships with your clients you create happy customers and a fleet of personal marketers who will go out and advertise your services for you. Don’t call Joe Tamargo just yet; word of mouth is still more profitable than the tattoo ad.

UAC Can Help You Increase Your Client Base

Since 1979 Universal Accounting Center has been training accounting firms in effective and inexpensive ways to build profitable accounting practices. With our own firm’s success obtaining clients and in helping 1000’s of others build a client base, we have developed a turn-key marketing solution called the “Universal Practice Builder.”

The Universal Practice Builder 2-day workshop teaches you the art and science of getting clients. The science makes it certain, and the art makes it easy. This 2-day hands-on workshop will give you the marketing tools and knowledge that are guaranteed to get you clients. Give us 2 days and we guarantee $30,000 to $100,000 in new annual billings. Don’t wait to grow your tax practice. Come visit Universal Accounting Center today!

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