You’re focusing on the wrong thing

Your number one focus during tax season is NOT preparing tax returns.

Most tax professionals think that this is there biggest responsibility, but it’s not. In reality, your most important task is to focus on driving revenue.

Failure to focus on revenue drivers will result in no tax returns to prepare.

The bottom line is that tax season is really only about three things, and these are the three things that drive 100% of your revenue:

1. Client retention.

2. Client reactivation.

3. Client creation.

Client retention refers to making sure that your clients from previous tax seasons come back again this year. It should never be assumed that clients will just come back. You must take proactive measures to make sure that they do. This is particularly important as the marketplace becomes more crowded, and as companies such as Intuit and H&R Block spend more and more money every tax season in their advertising wars.

Client reactivation is all about connecting with clients that did not come back to you last year that you had worked with in previous years. In multiple surveys, more than two thirds of taxpayers that switch tax preparers in any given year state that the reason for changing is due to a customer service matter. By being proactive in regards to your customer satisfaction, and directly confronting your lost clients about their reasons for switching, you can often bring back these lost revenues.

New client creation is the last piece of the revenue puzzle. On average, it costs about six times as much money to generate a new client as it costs to keep an existing one or get back an old one. This is why new client attraction is the is the last piece of the puzzle.

When you focus on these three critical pieces of your revenue puzzle, you can do as many returns as you can handle. Most practitioners get bogged down in the less important aspects of running their practices, however. This is a perfect example of the distinction between working “in” your practice versus working “on” your practice.

To discover more highly effective ideas for driving revenue during tax season, check out my latest book, the Tax Season Profitability Guide, available on Amazon.