Raise Your Prices with Confidence: Unlock the Potential of Automation in Your Tax Prep Services

Jun 13, 2023 | Automations, Cashflow

Jamie Gruol, MBA                                                                                                                 🕓 8 Min

Are you tired of undervaluing your expertise and services because you lack the confidence to raise your prices? Well, you’re not alone. Many Tax Professionals, Accountants, and Bookkeepers struggle with this very issue. As someone who understands the challenges you face, I want to share some insights on how an improved client experience can lead to increased value in your tax prep, bookkeeping, or advisory services, ultimately empowering you to raise your prices with confidence.

I recently stumbled upon an interesting discussion in a Facebook group that got me thinking about what sets two types of tax professionals apart.

It wasn’t just the inflated price that someone had paid for the chain-practice service; it was the comments and reactions to the post that caught my attention. Some tax pros confidently stated they were charging even more, while others were shocked at the high price, considering the service to be commoditized.

So, what’s the key differentiator? In my opinion, it all comes down to confidence. As a business owner and entrepreneur, adopting a different mindset when it comes to the services you provide and how you price them is crucial. In this blog post, we’ll make a case for how an improved client experience through automation can increase your ability to charge higher prices.

Automation = enhanced client experience 

Let’s explore three key areas that can transform your pricing perspective and how automation supports the client experience.

First, consider this scenario: One of our Workflows for Tax Pros members recently asked us how they could automate their process of providing estimates to clients (although this may not seem directly related to pricing, it actually is.) After some guidance and discussion, our members realized that their current way of working wasn’t congruent with their goals. They wanted a simpler way to serve their tax prep clients and deliver an excellent client experience while working less.

You can use this situation to reflect on how you currently provide services in your tax prep, accounting, or bookkeeping practice. Are there any aspects that are no longer aligned with your desires for your business? How can you work more efficiently while still ensuring an excellent client experience?

In the past, implementing changes like minimum fees or requiring deposits meant dealing with a lot of manual work. However, with powerful tools like TaxDome, you can automate these processes and remove the burden of making such changes.

Now, let’s dive into the three reasons why automation can help shift your mindset and give you the confidence to raise your prices:

Perceived Value

An exceptional client experience often enhances the perceived value of your services. When clients feel they’re getting superior service, they are generally more willing to pay a premium. According to a survey by the research firm Gartner, 64% of people said that customer experience was more important than price in their choice of a brand. By focusing on the client experience, tax professionals and accountants can enhance the perceived value of their services, thus providing a justification for higher prices.

Trust and Loyalty

A positive client experience builds trust and fosters client loyalty. When clients trust your expertise and feel loyal to your brand, they are less likely to be price-sensitive. A study by PWC found that 43% of all consumers would pay more for greater convenience, and 42% would pay more for a friendly and welcoming experience. By ensuring a high-quality client experience with automation, accountants and tax professionals can foster more trust and loyalty, allowing for an increase in prices without losing clients.

Differentiation

A superior client experience can differentiate your services from competitors, justifying higher prices. In a crowded marketplace, where many services may be seen as commodities, a unique and positive client experience can set your services apart. Another PWC report found that 73% of all people point to customer experience as an important factor in their purchasing decisions, even above price. By offering a unique and positive client experience, you can distinguish your services and justify higher prices.

Putting automation into action with TaxDome

Now that we’ve covered the transformative power of automation, let’s explore how you can put these ideas into action using TaxDome. We’ll highlight two powerful workflows that can help you automate important tasks like tax preparation and new lead management, providing that extra touch and elevating your practice to new levels of excellence.

Automated Status Email
Imagine keeping your clients informed every step of the way without lifting a finger. With TaxDome, you can implement automated status updates that keep your clients informed about the progress of their tax returns and provide estimated timelines for future communication. By customizing these automated emails, you not only reduce the amount of inbound emails and phone calls but also enhance the client experience and save valuable time.

Here’s an example of a tax prep pipeline in TaxDome:

As a job (aka client) progresses through the onboarding process (gathering documents, completing engagement letters and paying deposits, etc.) you reach a crucial stage where the return preparation begins.

Once they’ve moved into this stage of your pipeline, you can trigger an automated email to go out, such as this one:

New Lead Management

Don’t let potential leads slip through the cracks! With TaxDome, you have an incredible opportunity to streamline your new lead onboarding process and create a long-lasting impression.

Here’s an example of a new client pipeline in TaxDome:

Forget the old school notion that clients need to sign engagement letters before entering your TaxDome system. Let’s flip the script and leverage TaxDome as a platform to engage prospects and showcase what they can expect as one of your valued clients.

By setting up an automated sign-up process on your website, you can guide potential clients to a dedicated page that initiates account creation and captures basic information through a customized client application. It’s the perfect opportunity to set expectations, demonstrating how you leverage TaxDome’s features such as the online client portal, virtual document collection, and online organizers.

Even if you prefer a brick-and-mortar presence, you can still embrace the power of automation. Say goodbye to lost leads and clunky notebooks! With TaxDome, it’s all automated, allowing you to focus on building trust, delivering value, and nurturing meaningful client relationships.

Takeaway 

We’ve explored the transformative power of automation in your tax practice, from enhancing perceived value and building trust and loyalty to setting yourself apart from competitors. By leveraging tools like TaxDome, you can automate crucial aspects of your tax prep and new lead workflows and provide an exceptional client experience that justifies higher prices. Don’t hesitate to take the next steps in your journey toward automation success!

If you’re ready to take your tax practice to the next level with TaxDome and unlock the full potential of automation, we encourage you to join Workflows for Tax Pros. In this program, we offer comprehensive guidance on leveraging TaxDome’s automation features, enhancing client experiences, and streamlining your entire practice. From automated status updates to customized client organizers, our program provides you with the knowledge, skills, and proven templates to successfully implement TaxDome in your practice. Join now!

About the author

Jamie Gruol, MBA, is the co-founder of Workflows for Tax Pros, a 12-month online program dedicated to helping tax professionals, accountants, and bookkeepers streamline their practices with TaxDome. With a passion for empowering burnt-out and frustrated Tax Pros, Jamie specializes in leveraging technology to enhance the client experience and increase profitability. Through her extensive experience in software management and workflow optimization, her goal is to guide tax professionals toward automation success. Connect with Jamie on Facebook® to stay updated on the latest automation strategies.

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Hey Tax Pro!

Hi! We’re Jamie and Jessica, the dynamic duo behind Workflows for Tax Pros.

With a combined 20 years in business, we’ve learned a thing or two about building successful, streamlined businesses that enable professionals like you to build lives they love.

Our goal with this blog is to provide Tax Pros like yourself resources to build a profitable, peaceful tax practice that you can scale without creating more stress!

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