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Differentiate Your Practice by Offering Sales Tax Support

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Jun 2nd 2016
Founder and CIO The Digital CPA
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There’s a lot of noise in the CPA industry right now. This makes it difficult for CPA firms to gain attention – and, ultimately, business – from prospective clients. To make your practice stand out in the crowd and increase your revenue, consider differentiating the support you offer. By doing this, you’ll be in a position to increase services to existing clients and add new clients, which will lead to increased revenue.

Increasing services to your existing clients has a particular advantage. As their accountant, you’re in a unique position, as you already know the client and understand his or her business. This means you can provide more tailored support to your client, which benefits you both. It also means you have insight into the client’s particular vulnerabilities and risks.

If you’re looking to increase revenue by upping your client portfolio, differentiating yourself from competing firms is a must. This can be done by offering a more holistic approach to the financial side of their business. Clients want more than accounting support from their accountants these days. As the world increasingly moves online, they’re looking for solutions along with personalized support and advice in a grander context of their business.

Find the industry you know best and/or love to work with. Build your revenue with clients in this industry. You will gain efficiencies, which lead to profits. Add product-related support on top of that, and you have built a new stream of revenue.

The question then becomes: What’s the best service to offer outside of traditional accounting practices? With recent legislation and the increasing number of businesses with an online presence, sales tax support is becoming a clear choice.

Sales tax liabilities are continuing to grow for many businesses. This is because states are increasing their enforcement of sales tax laws due to budget shortfalls. Oklahoma missed out on $45 million in 2014 in sales tax due to Amazon sellers alone. As a result of facts like this, bills like OK House Bill 2531 serve to respond to the tax gap, and it’s likely similar legislation will continue to pop up, especially as we continue to see online businesses continue to grow.

This all means sales tax is no longer something businesses can ignore. The problem is, though, sales tax is a tough subject. With more than 14,000 sales tax jurisdictions and hundreds of thousands of sales tax laws, it’s really tough, actually. Business owners often lack the time, energy, or resources to determine their liabilities and next steps to protect their businesses. But that’s where you come in.

Accounting professionals looking to expand their business by providing sales tax support are entering the industry at a really exciting time. Now, thanks to cloud technology, there are a couple ways to add sales tax support to your services without dividing your time or energy.

One option is to use automated sales tax software that does much of the work for you. Tools like Taxify offer two options to provide sales tax software. You can manage your clients within the sales tax platform or you can refer your clients, they can manage their own account, and you get a commission for the referral. Either way, once Taxify is set up, it will ensure sales tax compliance for your client and an automated solution for you, resulting in increased profits – a true win-win.

Today, automation is the key to the success of the modern accounting practice. Use the tools at our disposal to put the necessary data in place so you can provide insights and advice, instead of just data entry. Taxify integrates with top online apps, like Xero (beautiful online accounting software), or top e-commerce platforms, like Amazon, Shopify, and WooCommerce. Connect your data, and leave the entry behind!

Growing your business isn’t an impossible task. Do some research, talk with your clients, and assess if it makes sense for you to add sales tax services to your firm’s portfolio. The industry is changing, and differentiation is one tool that can help your practice stay ahead of the curve.

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