Have you been selling tax practice as a service for a long time and have hit saturation points? If this is happening to your small CPA firm, you are not alone. The field of tax is dynamic and almost everyone needs this service. But then how do you continue to grow? As a smaller firm, it is easy to get lost in the competition with the larger entities. A common mistake that most CPA firms make is expecting business to come to them. A business that is on the verge of growth, needs to constantly look at opportunities to find new clients. In fact, growth has been one of the top focuses for firms to become successful.
Upselling bookkeeping services to tax clients can prove to be a golden way to achieve growth and success. Before we get into the details of upselling bookkeeping services to tax clients, let us understand the concept of upselling. It is a practice of offering clients additional services that complement the primary services. In this context, it essentially means that you provide your clients who are already familiar with your expertise, an additional service. This helps them get all their services under one roof and for you to generate better revenue while developing a loyal customer base. About 72% of salespeople drive 30% of their revenue from upselling.
In this article, Finsmart Accounting – trusted globally for accounts outsourcing services – will share the top strategies for upselling in accounting.
Let’s start!
Upselling in accounting: Top strategies you should stick to
1. Understand what your clients need: Imagine trying to sell bookkeeping services to a client who is selling off their practice! That is why it is essential to understand what your client needs. While the scenario might not be as drastic as the one we mentioned, you need to understand their goals, operation methods, and challenges. By knowing what your clients need, you can push for an additional service – bookkeeping for tax clients.
To reach this place, it is not enough to have surface-level discussions; ensure that you have regular meetings and understand where they stand. Try to add value to their business so that they begin to trust you with more responsibilities. Conduct surveys or ask questions to understand their inclination towards the new services. With their feedback and insight, you can not only gain knowledge of their willingness but also improve your services.
2. Go small at the beginning: Upselling is a skill. The more you take time to do things the right way, the better the chances of you achieving success. If you are trying to sell bookkeeping services to your tax clients, the best practice is to not begin with a hefty package. You can start by offering a single service that is relevant to your client’s needs and can lower their burden. This can help in building trust, rather than your client ending up thinking of you as a firm that “goes to any extent for profit”.
The moment your clients understand the value of your services, they will be more than willing to purchase more services from you. When upselling, patience is the key.
3. Build awareness for your clients: Accounting is a niche field. Upselling in accounting is not the same as convincing the customer to a serving of fries with a burger. It is essential to educate your clients about the benefits of the additional services that you are offering. While the clients might know, they, most likely, will lack in-depth awareness of why they need them.
Educating the clients can not be a “once in a while activity”. It is a long-term process where they need to be regularly reminded of your services. Be mindful when you have a conversation with your clients about this. They must have a specific need for the service that you are offering so that they remember.
4. Use marketing channels for awareness: Newsletters, leaflets, and videos are some of the common ways to connect and communicate with your clients about the additional offerings. When you add valuable information, along with your value proposition, clients perceive your firm as an expert. Case studies and testimonials are another way to show how your clients benefitted when they bought your bookkeeping services, along with the tax service. Webinars and workshops can also be a great way for your clients to connect with you, stay in touch, and understand why they need your services.
Although most CPA firms do not use social media as a means to communicate their proposition, this might be worth considering in the digital world of today.
5. Educate your employees: More often than not, it is not enough to make your clients aware of your services. In small CPA firms, where the workforce is limited and there are a plethora of responsibilities that need to be taken care of, it is easy for them to slip and fail to work around it. The leaders need to train the staff and encourage them to identify opportunities to support the clients in additional ways. It is also important to train them to “read between the lines” so that they do not miss an opportunity to upsell.
6. Price and package your services right: When upselling bookkeeping services to tax clients, craft packages that help combine the two at a competitive rate. Your offerings should serve as a convenience to your clients. The pricing must also be transparent, which enables clients to understand and trust your firm. Clients should know what they are paying for, how much they are paying, and the value they receive at the end of the day. Providing customization also works in favor of the client-firm relationship. Flexibility and budget are two of the top determining factors that help clients build confidence.
When communicating with clients, it is essential to explain the overall value of your bundled services. Showcasing the convenience and benefits of combining tax and bookkeeping services can go a long way in outweighing costs.
Providing quality services in upselling with offshoring
Upselling is a lucrative idea in terms of enhancing business and client base but execution can get tricky for small CPA firms. The lack of resources and time are two top reasons why small CPA firms do not feel confident to upsell bookkeeping services. That is where offshoring comes into play.
By outsourcing their services like bookkeeping and tax to a reliable offshore partner, small CPA firms can not only ensure quality work but can also take up more tasks and deliver them timely. Offshoring ensures that small CPA firms do not have to say “no” to clients and face a loss of business. Offshoring firms also come with their own set of expertise, which gives small CPA firms an edge over their competitors. By leveraging the strengths of offshore firms, small CPA businesses can effectively seize the opportunity, expand their offerings, and become a differentiator in the competitive marketplace.
Selling bookkeeping services with tax: Final Words
When working alongside a client, it is the responsibility of the small CPA firms that their clients adopt the best practices, and are financially on the right track, while abiding by the law and constantly growing. Help your clients get a bigger picture of how service offerings like bookkeeping are critical to their business and why is it further essential to bring everything under the same roof.
By creating awareness and enabling effective communication, small firms can unlock the complete potential of the opportunity and thrive in an ever-changing market. Your offshore partner can be truly instrumental in helping develop strategies and helping share the workload when you gain clients through upselling.
Have more questions about selling bookkeeping services, along with taxation? Reach out to our team at connect@finsmartaccounting.com.
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Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
