Forget tax season terror. In this series we examine how to turn it into opportunity and add an additional $100,000 to your revenue this year, starting with setting realistic objectives.
Breaking the Cycle
It's that time of the year again. The 1099s have been sent, and accountants and CPAs across the country are stocking their offices with power bars and coffee. But don't stop reading yet; we're not talking taxes here. Instead, we'd rather focus on the ways in which accountants and CPAs can leverage tax season as a way to build revenue throughout the rest of the year.
By its very nature, compliance work is deadline driven. We don't need to tell you that. Compressing what could be nearly a year's worth of work into less than four months puts an enormous amount of pressure on accountants, on their support staff, and on their families. We'd like to see accountants and CPAs get out from under that kind of gruelling work.
A better way to grow
At Receipt Bank, we firmly believe there's another way in which we can help firms grow. A way that doesn't rely on a quarter of the year to be the lifeblood of your cash flow and your revenue, while leaving you exhausted and overworked. We know there's a way to change the traditional business model to one that is more lucrative and much less stressful.
The key is switching up your services to a model that will provide a monthly recurring revenue (MRR), allowing you to replace $100,000 of tax revenue with $100,000 of client accounting services revenue. Or keep that tax revenue and add an additional $100,000 in MRR. The benefit? Consistent income and consistent activity.
Tax season offers you the perfect opportunity to talk with your clients and identify ways you can help them grow their business further. You have the expertise to take over your client's bookkeeping and financial management and do it more quickly and more accurately. Because of the high cost of an on-staff accountant, you're valuable. They'll get to focus on what they do best, allocating their time and energy into growing their business. Each week we'll cover each of the six steps to take your firm to an additional $100,000.
Step 1: Have a target
Remember road trips before Google Maps and GPS? The first step of a great road trip was picking your destination. Without a destination, you'd drive aimlessly for days, never knowing exactly where you were going. In the same way, you need to pick a target -- a dollar amount you want to bring in with your MRR.
For the purposes of crafting a title, we've chosen $100,000, but the number will vary, depending on your particular firm. For a sole practitioner or someone just starting out in the profession, $50,000 may be a more reasonable goal. For small- to medium-sized firms, your target might be $100,000 up to $250,000. A large firm with multiple partners may shoot for $1 million.
Once you have a target, together we can make a plan to meet it. Next time, we’ll look at quantifying and tracking progress.