The Importance Of Adding A Virtual Tax Business
A virtual tax business gives tax professionals the opportunity to expand beyond the walls of their tax office. Traditionally, tax pros focused primarily on serving their community with posters in their office, local ads in the paper, or on word of mouth. Why? Because they understand that foot traffic to their tax office means more revenue for their business.
But what if you're stagnant and are having a hard time finding more people in your near your tax office? Adding a virtual business to your existing tax office will help increase your revenue without adding a crazy overhead expense. The next couple of points will show you exactly why adding a virtual business is vital part of being successful in todays tax industry.
Anyone Can Be A Potential Client
Like we mentioned above, if you're only operating out of a physical tax office, you're limited to the foot traffic around you. Think about all the people you meet outside of your tax office. Maybe one weekend you visited friends in another state, or perhaps attended a networking event in another city. Every single encounter is an opportunity to seize that business.
Now, when you're having these conversations, you want to be able to share value and insight that can drastically improve their current position. Listen to their current struggles, ask the right questions, and start building genuine rapport with these people. Once you do, instead of sharing your business card, ask to follow their social media profile.
That way, you'll always have a way to bring them back into a conversation about doing their taxes through relevant posts, videos, and content related to their tax situation.
Offer Your Clients Convenience
If there is something that businesses need to understand is that people are busy. If you were to think about the current living situation that most of your clients are in, how many would you say are pretty busy? Some people have multiple jobs, others are single mothers with kids, and as sad as it is to acknowledge, taking time to go to your tax office can be a burden.
With that in mind, tax pros need to consider how to making coming to the tax office less of a time burden. In other words, how can you create an experience for your customers that accomplishes the same thing as coming into your tax office. By giving your customers the ability to submit their taxes from the convenience of home, you're showing that you care about their time.
For some, they will prefer to still come into your tax office, but as you transition more of your clients to virtual, you'll have more opportunities to cut down on overhead expenses.
Eliminate Big Overhead Costs
Part of having a physical tax office are the big overhead costs that come with it. Some of the overhead costs include:
-Rent (lease) or Property Tax
Once you transition to a virtual business, the most important thing is getting a software that can handle the distribution, secure file exchange, and signature for your required documents. With this approach, you have the ability to work from home, and ensure that your clients are getting the most out of a virtual business.
With a physical tax office, you can only count the sale if the customer steps foot into your tax office and gets their taxes completed. Think about the follow up and the work you need to do to ensure he/she gets there. Like we discussed earlier, peoples lives are busy, so anything can change at a moments notice.
For a virtual tax business, the conversion rates are more secure and efficient. Why? Well, as soon as your client sends over their W-2, you're now in control of that sale. From their side, they've shown a commitment to you by sending over their W-2, and from your side, you've secured that sale (depending on how quickly you file their taxes).
Improve Customer Retention
Retaining your prior year clients is just as important as acquiring new ones. Just because you've prepared their taxes before, does not mean that you are guaranteed to do their taxes again.
Throughout the year, it could be the case that other tax preparers have been reaching out to secure that business. For that reason, it's extremely important to stay ahead of it and provide options that will benefit your existing customer.
By allowing customers to easily send their tax documents virtually, you are making sure you retain existing clients. In the same way we discussed increased conversions, it can be applied to retention. You want to reach your existing customers efficiently (Text/Email Campaign) and make sure they know you are looking forward to helping them with their taxes.