For many tax pros, filing season is the most stressful time of the year.
It’s filled with long hours, grumpy clients, software glitches, IRS headaches, and more.
So why do so many tax professionals subject themselves to it?
The answer, like many things in business and life, comes down to money. They subject themselves to the stress and anxiety of filing season because it’s where the vast majority of their annual revenue comes from.
I’m now going to write something controversial that might make you mad, but it’s the truth, so I’m going to write it anyway: Generating all your revenue from one thing during three months of the year is ridiculous.
Imagine if Ford only built Mustangs, and they only built them for three months out of the year.
Imagine if Campbell’s only made clam chowder, and they only made it three months out of the year.
Imagine if Netflix only had one series, and it was only available three months out of the year.
Ridiculous, right? It’s a rhetorical question, because of course it’s ridiculous. But at the same time, this is exactly what many, many tax pros do — and it’s utterly befuddling to me. Always has been, always will be.
Sticking with a tax prep theme, let’s ponder a few things:
- Would tax season suck less if you did HALF as many tax returns, but made just as much money?
- Wouldn’t life be better if most of your tax prep clients also paid you the rest of the year for tax planning?
- Would you make more profit if your marketing costs dropped?
Uhh, yeah. Of course the answer to each of these questions is a resounding, “YES!”
I know you’ve heard these things before. You already know that you can get more profitable clients, even out the revenue roller coaster, all that jazz. So why aren’t you doing it?
Maybe it’s because you just haven’t seen a good example of it modeled before. Or maybe you feel trapped in the mire of existing client work. Maybe you just don’t know where to start. Maybe you’re scared to try new things.
Whatever the case may be, I’d like to encourage you to take action. Not tomorrow – TODAY!
Some ideas on what to do differently this year:
- reduce reliance on filing season income
- reduce seasonal work hours
- generate revenue all year round
- work with better clients that pay higher fees
Every year, I encourage tax pros to make last year your last nightmare tax season. There is absolutely no reason for you to slog through another year of ridiculousness. Seriously, just make the necessary changes right now — it’s not that hard. But, you need to know what changes to make. And it all boils down to how you generate your revenue.