Category: Practice Management

One of the most important things I’ve learned to do to make more money in my tax practice?

Follow up religiously, relentlessly, and automatically...

Big Mistakes Tax Pros Make  – Not following up with prospects

As a tax pro, I get busy like the best of them. Especially when it is only you or a few other staff (who are also very busy) in the office. If you are like me, you have been doing so many different marketing methods for a long time of trying to get new business. Many of those methods are now working very well in attracting leads and prospects.

You get many people who call, email or text you about wanting to be your client. They want tax prep, tax planning, bookkeeping, payroll, or other advisory services (or all of the above). But you get so busy that you don’t have time to talk to them.

Of course, time gets away from you and you realize a couple of weeks (or more) has gone by. Most people write that off that it is too late to contact them now. But why?

If you find yourself in that situation, have you or someone in your office call them back to see if they hired someone. You may be surprised that no one has called them back. Worst case scenario, they tell you they already found someone, you wish them well and move on. But what if they haven’t found someone yet?

I have had this happen many times. One time we contacted the person back and said they called a few people and no one called them back. After talking with them, it turns out they had a few back tax returns to prepare and setup an installment agreement for them. This generated almost $4,000 to my firm, just by returning a phone call (two weeks late at that). This was all because I picked up the phone and returned the call about two weeks after they initially called.

Obviously, don’t wait two weeks, but do know that if time has gotten away from you, then it is not necessarily too late. Pick up the phone and call now! You never know what you may find out!

All the best,

Dan Henn, CPA, CTR™ Managing Member Tax Pro Academy, LLC community.taxresolutionacademy.com

Big Mistakes Tax Pros Make – Giving out your personal phone number…

Back when I first started my tax practice (two decades ago after working for other CPA firms for 16 years), I, like most tax pros, was looking to save a buck. One of those things I did was use my cell phone as the office phone number while I worked from home.

After two years, I decided to get an office phone and phone number. I used a VOIP phone service (Voice Over Internet Protocol). But I still kept giving my cell phone number out to clients as it appeared to give value.

Then in year three, I met a coach/mentor, that was also a CPA with a tax practice, who told me to stop giving out my cell phone number to clients. He then explained to me that there is no reason that anyone (outside my wife and family) that needs to reach me at any time of the day or night. There are absolutely NO financial emergencies that need me to answer a question at any time of the day.

It made sense to me, so from that day on, I changed my business cards, removed my cell phone number from the website and any other marketing materials. I have not given it out my cell phone number since.

Since then, I have not had one client or prospect ask me for my cell phone number or get upset that they cannot reach me at 7pm or 7am. Although in those early days, I did have a few clients call me at both of those times.

I love my clients, but that is my time. I take long walks with my wife and the dogs. I coach my daughter in her U12 girls soccer team, and I use this time to read or do projects around the house.

Obviously, it is your practice and you get to do what you want to, but I suggest you seriously think about no longer giving your cell phone number out. Get a FREE Google voice number and forward it to your cell phone. Learn to take back YOUR time. One other thought, if you still do use your cell phone for business and clients call you after hours, do NOT answer it after hours (although I can make the argument to not answer it ever). Otherwise, you are training them that if they call

How many employees have you fired?

Not ones that quit, or disappeared; I mean FIRED?

Quit tolerating it – both for you and for your other people!

Big Mistake Tax Pros Make – Not firing employees that cause you grief/stress

My last post of the Big Mistake series, I mentioned that not firing clients that cause you grief/stress is a HUGE mistake. The next biggest one is not firing employees that cause you grief or stress.

Yes, we have been in a hiring shortage and finding good people is always a challenge … But, if you have someone working for you that is just not getting it, gives you poor quality work time after time, then you need to get rid of them.

I ascribe to the philosophy, slow to hire and fast to fire. If they are not performing well, then they need to go. They are probably costing more time than they are saving you. It would even benefit you to use a service like Paro. While most of their professionals are not cheap, they are good and best of all, they are not your employees. You don’t have to deal with drama, whining, or benefits.

Yes, if you are like most tax pros, you are kind hearted and a people person. Firing someone to you is a form of cruel and unusual punishment and it feels horrible. Having done it a few times, I am not going to disagree with that. But, you and they will be much better off in the end.

If you have someone on a short leash, they are not doing you any good. In fact, you are probably holding them back. Maybe public accounting is not for them. I have seen some employees in a public accounting firm get fired and then go on to great careers at a company that was a better fit for them.

Not only that, but them occupying the space is keeping you from looking for someone that may be a much better fit for your firm.

So, seriously think about it if you have a low or underperforming employee. There are temporary alternatives if this leaves you short handed, but trust me, you will be better off in the long run.

If you fire someone, let me know how it goes. How did you feel about it? What did you ultimately end up doing to replace them?

Make it a great