Bookkeeping Earns You More Residual Income For Your Tax Business
For tax preparers who are more focused on tax preparation, the majority of their income comes during tax season. In some cases, tax businesses can also offer credit repair, money management, tax resolution, or even real estate services. The problem with offering too many services is that you spread yourself too thin, and have a much harder time grasping the true needs of one service.
Alongside tax preparation, bookkeeping services provide a great opportunity for you to stay busy throughout the entire year. If you have experience with bookkeeping (tax preparation and bookkeeping compliment each other very well), you can use those skills to slowly grow that part of your tax business.
Choosing a Niche
Why is it important to choose a niche? By niche, I mean, a specific industry or category of business. By focusing on one niche, you give yourself the opportunity to learn as much as you can about it. For instance, if you work solely with restaurants, you will start to better understand how businesses like these can increase their cash flow, and even reduce their tax liability.
As you become more of an expert in that niche, it'll be easier for you to successfully manage a similar business because you already know what works best. Before you know it, you're doing bookkeeping for 15 restaurants and earning a monthly residual income with far less effort.
How to approach the conversation
Like we mentioned above, the goal for you is to solve a problem. It's not enough to say that you can offer bookkeeping services. Why? Because absolutely everyone is doing the exact same thing. Instead, consider positioning your tax business with something like this:
"Hey John, would you be interested in seeing how you can reduce the tax liability for your restaurant and increase your cash flow?
Business owners everywhere are constantly asking themselves similar questions, and its your responsibility to see how your tax business helps uncover the answers to those questions.
Where can I find bookkeeping clients?
Small businesses need to stay organized and have accurate financial data to help make smart decisions.
The best way to start looking for bookkeeping clients is on social media. Businesses on Facebook or Linkedin will range from local coffee shops to huge conglomerates. Once you've identified your niche, you'll be able to scope out these businesses on Facebook, and quickly reach out to them.
The amount of potential conversations depends on how you position your tax business. This still remains a numbers game. The more businesses you reach out to, the better chance you'll have of getting them as a tax client.