Tax resolution services are becoming increasingly more important. Tax preparation is a saturated market. Just look at the classified section of any newspaper during pre-tax season and you’ll see. Maybe you already have, and your business is one of those advertised among the mish-mosh of competitors grappling for attention.
How do you rise above the rest?
Let’s get one thing straight before we go any further. Every industry deals with competition. Without it, consumers would be at the mercy of price gouging and limited choices. Competition can be a positive thing.
The tax industry is highly competitive and for good reason. Note these three points:
- There is no foreseeable end to federal or state taxation, so there will always be a need for tax services.
- Many people fear auditing because the taxation system is so complex. Fearing IRS red flags, they don’t want to file their own taxes—so there will always be a constant flow of prospects.
- When treated well, clients are loyal and represent a potential recurring stream of income; often over a lifetime.
Now that we have that out of the way, let’s address the main point of this article. Tax professionals are all seeking access to the same pool of potential clients. How can your business can rise above the chatter?
Build a Solid Reputation
The most important thing to remember is to be ethical and impeccable with your service–especially as a tax resolution business. It’s easier to build on a good reputation than it is to try to restore a bad one. When it comes to your clients’ money, trust is essential. This can work for you and against you.
Be trustworthy and you’ll retain clients. They’ll even refer you to everyone they know. Family members often stick with tax professionals for generations. It’s not uncommon for a teenager with a first job to seek the services from the same company Dad and Grandpa used throughout their lives.
On the other hand, compromise your principles just once and smack-talk can’t get out onto the street fast enough. Phrases like, “Don’t ever use….” Or “Stay away from….” will quickly be followed by [insert your name or the name of your business]. Just try to recover from that! The backlash can destroy your reputation and your business.
Building trust is easy: always be honest, put your clients’ needs above money, and be educated so you can provide the best service possible.
As a tax professional, your job description is similar to that of police officers and firefighters: to protect people and when necessary, put out fires. Interestingly, a couple of years ago, it was determined there were more tax professionals in the US than firefighters and police combined. With that many competitors, how can you differentiate your tax resolution business?
Regardless of the number of brands offering similar products and services to yours, the truth is every single tax professional is slightly different. Identify your niche and focus on it. Excel at something, offer it, and your business will thrive.
Common tax questions beg answers and today’s consumer is savvy. The Internet makes sure of that by offering loads of information. Review sites allow consumers to share their experiences—positive and negative—with other consumers. There’s no more pulling the wool over tax clients’ eyes, because some of them know more than their tax preparer. Don’t let that happen to you.
IRS Solutions offers tax resolution software and support for your tax business that will help you rise far above the competition. Our software will save time and money by freeing you to build your business, your way.