Reinvestment Options For Your Tax Business
It takes time to establish and grow your tax business. But once you’re able to compensate current employees, maintain equipment, and pay your overhead costs, it’s time to consider putting extra money into your tax business.
Reinvestment means pouring a percentage of your company's profits back into your business. It's a great way to increase the value of your business and help your business grow. It's also considered a business expense, so you won't have to pay income taxes on it.
1. Invest in Yourself
Consider taking courses, buying books, or learning online as a way to improve your skill set. If your tax business struggles in getting new clients every year, you can take a course on marketing and fill that void. If you're thinking about offering a new service like bookkeeping or tax resolution, you can invest in yourself to learn a new skill set, and apply it to your tax business to generate revenue.
2. Conferences Or Networking Opportunities
Continue building connections with potential clients and business partners in networking events. Every person you meet is a new opportunity for your tax business. If you're virtual, you can service any new potential encounter, and if you offer bookkeeping, you can find plenty of small businesses looking to fill that void.
3. Expand Your Tax Business
Tax preparers can open up a new location in order to service new clients. You can also invest in better technology for your tax office, and improve your overall process. These are things like: customer support, sales process, follow up, retention etc.
4. More Marketing
Consider hiring a marketing person or agency to create buzz and generate income through things such as improved search rankings and greater relationships with customers. Also, creating more of a social media presence will help you interact with more customers and share how you differ from other tax businesses. Consistency and content are key in developing a closer relationship with your audience.
5. Hire More Employees
If you need them, hire more employees, or work on training and boosting the morale of existing employees. If you are in high demand, you should consider hiring more employees to ensure all of your potential clients get the attention they deserve. The last thing you want to do is spread yourself too thin, and not deliver on what you promise.
You can also consider paying certain employees more, and give them more responsibility in the process. This takes some of the pressure off of you to focus on other things, and continue to improve your tax business.