Tax season isn’t just for accountants—it’s my firm’s biggest opportunity to increase revenue and optimize collections. When I built my firm in Phoenix, I discovered that I could generate over 50% of my revenue in just four months by using a strategic 5-step leverage system.
Let me walk you through exactly how I did it—and how you can, too.
Step 1: Identifying the “Who”
To bring in additional revenue, I first had to identify the who—the people who owed my firm money.
Two key groups stood out:
- Clients with Outstanding Balances: Every law firm has unpaid invoices. Even top-performing firms only collect around 95% of what they bill, while struggling firms collect closer to 70%. That leaves a significant amount uncollected—potentially hundreds of thousands of dollars.
- New Prospects: Many potential clients need legal assistance but lack the upfront funds. Tax refunds present a golden opportunity to secure these clients by structuring an offer that aligns with their incoming cash flow.
Further segmentation was needed—dividing outstanding debts into young debt (recent invoices) and old debt (long overdue payments). Younger debts are easier to collect, so I structured my offers accordingly.
Step 2: Crafting the Right Offer
Once I knew who to target, I needed the right offer. The key was leveraging tax season—the financial conversation already happening in their minds.
For existing clients with debt:
- Young debt: A modest incentive, such as a small discount or flexible payment terms.
- Old debt: A larger incentive, like a significant discount or a payment plan.
For new prospects, I encouraged them to pledge their tax refunds toward legal fees, either in full or as part of a structured plan. This made my services more accessible when they had the funds available.
Step 3: Marketing the Offer
A great offer is useless if no one hears about it, so I had to ensure my message reached the right people. Here’s how I did it:
- Emails targeting clients with outstanding balances and new prospects
- Phone calls to personally engage clients
- Text messages for quick, high-engagement communication
- Retargeting ads on social media
A crucial pro tip: Set a deadline. Deadlines create urgency and significantly boost response rates. I saw this firsthand—adding a deadline increased engagement tenfold.
Step 4: Scripting the Conversations
Marketing got people interested, but what happened when they responded? I needed clear scripts for my team to ensure smooth conversations.
I developed tailored scripts for:
- Accounts Receivable Team: Ensuring they effectively collected outstanding balances.
- Sales Team (Initial Consultations): Helping them position tax refunds as a viable payment method.
- Appointment Setting Agents (ASAs): Engaging unconverted leads and bringing them back using the tax season offer.
With clear, concise scripts, my team was able to secure more payments and retain more clients.
Step 5: Training the Team
Even the best script is useless without training. Here’s how I made sure my team executed properly:
- Memorization: Ensuring staff knew the scripts inside out.
- Role-playing: Practicing conversations before engaging with real clients.
- Live call review: Listening to real interactions and providing feedback.
- Scoring calls: Evaluating performance to refine messaging.
Training ensured consistency and maximized results.
Bonus Tip: Leveraging Tax Season in Lead Generation
Beyond targeting existing debts and new prospects, I also used tax season for advertising and lead generation.
By incorporating tax-related messaging in ads—such as referencing tax refunds as a way to afford legal services—I attracted new clients who may not have considered my services otherwise.
The Path to a Record-Breaking Tax Season
By following these five steps, I made tax season the most profitable time of the year. Here’s a recap:
- Segment the list to identify the right targets.
- Craft an enticing offer that aligns with tax season financial realities.
- Market the offer effectively through multiple channels.
- Create scripts to maximize conversions.
- Train the team to execute flawlessly.
When done right, this strategy doesn’t just bring in short-term revenue—it sets the stage for better collections and client acquisition year-round. Implement these steps now, and make this your best tax season ever!
