Big Mistakes Tax Pros Make – Not time blocking and meeting with clients at all hours

Big Mistakes Tax Pros Make – Not time blocking and meeting with clients at all hours

If you are a tax pro like me, I know you are real busy. So busy in fact, that you barely find the time to do things you really enjoy.

That is why it was an easy way to buy back my time by using time blocking.

What is this? Well, it entails putting events, projects and meetings in a group (as best as you can). For example, you book a client on Tuesday at 10am, then try to get your next client to book at 11am (or 10:30am if it was only a 30 minute appointment).

So, now you ask, “How do I get my client to come in at 11am?” The same way your doctor or dentist gets you to come in at a certain day/time. You tell them that is your only availability for the next two weeks.

The other aspect of this is don’t let your clients have a wide range of choices.  “Hey Joe, I am available all afternoon until 7pm!” Make the appointment times convenient to YOU, not them. I only meet with clients from 10am to 4pm on Tuesday and Thursdays and only 1pm to 4pm on Wednesdays. Yes, that’s right, I do not meet with clients before 10am or after 4pm and not at all on Monday, Friday or the weekends. Have you ever made an appointment with a client at 6pm on a Wednesday night and they did not show up or were 30 minutes late? This makes you home later as well. Nothing more frustrating that this. Well, maybe a client not paying me!

I hear it all the time, “But clients will go somewhere else!” That may happen, but I want to work with people who will work on my schedule, my terms.  By the way, I have been doing this for about 6-7 years and this rarely comes up as an objection. Do I make an exception? Yes, occasionally, but only if they are a referral from a good client (and I mean GOOD client) or good referral source.

By doing this, I can focus more time on practice management, marketing and/or technical work (tax prep/review, tax planning, IRS representation cases).

I suggest you give it a try. When I started doing this, this is when I realized I was the one that was in control … Continue reading

Big Mistakes Tax Pros Make – Not increasing your fees

Big Mistakes Tax Pros Make – Not increasing your fees

It boggles my mind that this is something that needs to be said to Tax Pros, but you should be increasing your fees (on all of your services) every year at least 3-5%.

Some tax practitioners are still using the same fee structure for the last 10-15 years. Why? I don’t know. It’s not like your costs don’t increase every year!

Your employees want raises. That wonderful tax program you use increases every year. CPE and the other tools and resources you use increase every year. Why don’t you increase your fees every year?

You had the best excuse in the world to increase your fees 5-10%. What is that? Inflation in 2021 and 2022 was pretty crazy!  Please make sure you take a look at all of your fees and let your staff (and clients) know what the new fees will be.

Of course, when I say increase your fees, I am talking about raising your base rates as well as the rates you charge to your existing clients. So, if you were charging a client $200 for their tax return last year, then the fee for this coming year should be between $210-220. But your base fee should increase to $250 if you were previously charging $200. This now becomes the rate for new clients who walk in the door.

Trust me, you will thank me later when your bank account is much bigger than it used to be.

Remember, now is the time to get started learning about adding Tax Resolution representation to your list of services. It is a natural fit to the work you already do if you are a tax preparer.

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Dan Henn, CPA, CTR™, NTPI Fellow
Managing Member
Tax Pro Academy, LLC… Continue reading

Big Mistake Tax Pros Make – Taking on every client that walks in the door

Big Mistake Tax Pros Make – Taking on every client that walks in the door

I was on a webinar as a panelist for the TaxProMarketer when my good friend Nate Hagerty asked me what the biggest mistake tax professionals make. Of course, I told him one when he asked me the  question and then offered a few more during the hour and twenty minutes we were on the Zoom webinar. Below is another mistake tax pros make in their practice (of course there are many others). See the post from July 23, 2023 “Including IRS representation work in tax prep fees for clients”.

Yes, I know it seems like it is hard to get people to call, email or knock on your door. When someone is ready to buy, we are eager to make them a client. But you should not work with everyone that is willing to work with you.

Look for the warning signs.

– You ask them to get you some form, document, or piece of information before your meeting with you and they have some excuse

– You mention your fees and they say “Can you do it for less? My prior guy charged me less than that.”

– They are complaining about the prior tax preparer and you look at what they did, and there is not much you would do differently

– They are in the process of suing their prior tax pro or filed a complaint with the state or IRS

– They are talking to you and have used 3 different preparers in the last 4 years

– They made an appointment with you and were 15 minutes late and make you go over the allotted time (especially when it is late in the day or on a weekend day)

– They schedule an appointment and either missed it or rescheduled at the last minute (2 or 3 times). I personally have a 2 strikes and you are out rule.

I could go on with many more. I hope you get the point. Working with these clients are only going to cause you stress, pain and suffering. If you have had a tax practice for any amount of time, I am sure you have enough of these kinds of people on your list. Why do you need another? Just because they can pay you what you ask?!

Oh, and if by chance you see any … Continue reading