How Offering Bookkeeping Services Can Provide a Secondary Source of Income for Tax Professionals
Tax professionals are always on the lookout for opportunities to expand their services and increase their revenue. After all, tax season only comes once a year, and while most usually get a ﬂurry of work around this time, trying to keep things consistent throughout the year can be a bit of a struggle.
However, while many tax advisors turn to consultancy jobs, preparing ﬁles, sorting documents, and the sorts, one fantastic opportunity to increase their income and ﬁnd balance throughout the year is to offer bookkeeping services to clients.
In this article, we’ll explore the beneﬁts of offering bookkeeping services and how they can provide a secondary source of income for tax professionals, backed by industry statistics and research.
The Synergy Between Bookkeeping and Tax Preparation Services
Bookkeeping is a complementary service to tax preparation.
According to the American Institute of Certiﬁed Public Accountants, many clients require both bookkeeping and tax preparation services, and offering both can help tax professionals build stronger relationships with their clients.
And this makes sense.
With an increase in gig workers, freelancers, contractors, and remote workers (the number of self-employed people in the US is increasing yearly), these professionals have neither the know-how nor the time to effectively manage their books and taxes.
Thus, they outsource them, and that’s where you, as a tax professional, can ﬁnd a lucrative amount of work.
By managing a client’s ﬁnancial records throughout the year, you’re able to not only offer two services in one, but you actually make your life easier because you’re able to provide more accurate and comprehensive tax advice, ultimately leading to better outcomes for clients and stronger referrals.
The Recurring Revenue Stream
Unlike tax preparation, which is typically a once-a-year service, bookkeeping provides a consistent source of revenue throughout the year.
A survey by Accounting Today found that tax professionals who offered bookkeeping services enjoyed a 35% increase in revenue compared to those who only provided tax preparation services.
With a recurring revenue stream, tax professionals can enjoy increased ﬁnancial stability, helping to level out the peaks and valleys of their income during and outside of tax season.
This means more money in your back pocket, more money to invest in your business, and overall a better chance to scale and grow as you work on your business.
Identifying Potential Tax Savings
Another beneﬁt for clients that will help your business stand out can locate tax savings for your customers, making them more money throughout the year.
By keeping accurate records throughout the year, tax professionals can more easily identify potential tax deductions and savings for their clients, which they’ll love.
Research from the National Association of Enrolled Agents suggests that clients who engage in ongoing bookkeeping services are 20% more likely to maximize their tax savings and minimize their liabilities, and this is a great way to showcase your value compared to other competitors in your industry.
Leveraging Bookkeeping Services for Referrals and Competitive Advantage
Okay, there are some clear beneﬁts here, most of which can be boiled down to the fact that when you offer bookkeeping services, you’re offering your clients more value in many more ways, which means you’re providing a greater, more-sought after-service.
But how do you actually bring this into your business and start working in this way? Let’s explore your options.
Attracting New Clients Through Referrals
A study by Forbes found that satisﬁed bookkeeping clients are 25% more likely to refer new clients to tax preparation services.
Of course, you need to get the ball rolling, which means you should start offering high-quality bookkeeping services to your existing services and then ask them nicely (or by incentivizing them) to give testimonials and reviews on how much of a positive difference your services make.
This then creates a positive feedback loop that drives business growth and increases revenue.
Differentiating Your Services from Competitors
It’s important to note that not all tax professionals offer bookkeeping services, so incorporating them into your service offerings can help set you apart from the competition.
A survey by the Journal of Accountancy revealed that 65% of small businesses prefer to work with a tax professional who also offers bookkeeping services in addition to their speciﬁc tax services.
By positioning yourself as a one-stop shop for ﬁnancial services, you can attract new clients and build long-term relationships that generate ongoing revenue.
After all, why would any of your clients then need to go anywhere else?
Embracing Technology for Efficiency and Growth
Of course, introducing bookkeeping services into your business can be hard work, especially when you’ve already got a lot on your plate, but this is where technology can be your best friend.
Modern bookkeeping services are driven by technology, with cloud-based accounting software and automation tools making managing clients’ ﬁnancial records easier than ever.
Research by Intuit found that tax professionals who leverage technology to streamline their bookkeeping processes see a 41% improvement in eﬃciency gains, allowing them to offer a more comprehensive, tech-driven service to clients.
The streamlined your workﬂow and process, and the more work you can handle, and the more sustainably you can grow your business, allowing you to take on new clients, offer more value, and enjoy higher earning potential.
Expanding Your Skill Set with Continued Education
On top of all this, as a tax professional, it’s crucial to stay updated with the latest industry trends, technology, and best practices.
By investing in continued education, whether that’s into bookkeeping, bettering your existing skills, or continuing the learning process, you can learn new skills, such as advanced bookkeeping techniques and strategies, that’ll allow you to serve your clients better and grow your business.
Consider attending workshops, webinars, or enrolling in online courses to strengthen your bookkeeping expertise and stay ahead of the competition.
Here at Takeaway Tax University, we offer a range of courses that make this learning process easy.
Whether you’re just starting out and you’re acquiring the skills you need to thrive, or you’re expanding your knowledge to take on new services, our courses cover everything you need to succeed.
How to Implement a Marketing Strategy to Promote Your Expanded Services
Now we’re clear of everything offering bookkeeping services can do for your business, it’s time to start pushing them out to the world.
Before taking this step, make sure you’re proﬁcient in what you’re offering and your skills are up to scratch. Start by offering these services to your existing clients (if they want them) to make sure you know what you’re doing, and you’re able to clear up any bottleneck issues you may come across.
Then, when you’re ready, it’s time to start promoting.
Develop a marketing strategy that focuses on your target audience and highlights the beneﬁts of choosing a tax professional who also provides bookkeeping services.
Use social media, email marketing, and targeted advertising to reach potential clients and communicate the value of your expanded service offerings.
When the clients start coming in, your business will start scaling, and the results will speak for themselves.
Take Your Professional Tax Business to the Next Level
In conclusion, by offering bookkeeping services as a secondary source of income, tax professionals can tap into new revenue streams, strengthen client relationships, and gain a competitive advantage in the market.
By embracing technology, investing in continued education, and implementing an effective marketing strategy, you can position your tax practice for long-term success and growth.
If you’re a tax professional looking to expand your services or a small business owner wanting to grow your business through marketing, contact Takeaway Tax University to learn how we can help you achieve your goals.
By offering bookkeeping services as a secondary source of income, you can enhance your revenue, build stronger client relationships, and gain a competitive edge in the market.
Sign up today and watch your business take off!
July 20, 2023
June 15, 2023
April 21, 2023