Getting end of year tax planning appointments

The expiration of the “Bush tax cuts” and continued Congressional gridlock creates a great profit opportunity for you and your firm.

The time between now and the end of the year is a great time to create your own year-end seasonal rush. For your existing clients that have tax return requirements that extend beyond a 1040-A, they may benefit from end of year tax planning.

On top of that, now is a great time to contact your tax preparation clients from prior years and that did not come back to you to prepare their 2011 return. Reaching out to these past clients to offer tax planning and tax return review services could become a goldmine for you.

The most cost effective method to get more tax clients is to always turn to your existing tax clients. Increasing your value to your existing clientele, by selling them additional services, helps both of you. In addition, reactivating clients you have lost to competitors is by far the simplest and cheapest method to get new tax clients.

This is more than just a marketing ploy, by the way. It’s a seriously legitimate situation that intelligent taxpayers really should be planning ahead for. The pending “fiscal cliff” involves far more than just automatic spending cuts and the Treasury continuing to print more and more money. The expiration of numerous tax credits and deductions, necessary AMT changes that won’t be forthcoming, and potential increases to both marginal income tax rates and capital gains rates all could leave taxpayers unprepared.

Many tax practitioners make the mistake of doing return reviews and tax planning for free. This is a valuable, additional service that has a positive impact on the your client’s bottom line. Therefore, you should be adequately compensated for your time in providing this service.

Right now is the right time to send tax planning letters to current and past clients. Offering old clients a return review in addition to tax planning can be an effective way to get them back into your fold. A simple letter offering tax planning appointments, and explaining why it is necessary, should be sent to every person that you have ever prepared a 1040 for.

READ  30-Day Tax Firm Challenge: Day 2

For premium subscribers, I have written an example marketing letter for you to use for exactly this purpose. This letter is available as a Word document under the “Tax Marketing Pieces” link in your download center. These marketing pieces are available to all membership levels.

Don’t let this opportunity pass you for increasing your bottom line. This could easily add an extra ten or twenty thousand dollars in revenue for a solo practitioner between now and the end of the year, if not more.