I know the name of the game is to get client tax returns processed as quickly and efficiently as possible. But once you send a client their return (with your bill) and remind them to sign it, it’s tempting to think: “Out of sight, out of mind.”
But inevitably, clients have questions.
One of our clients called me the other day and said: “Hey, Kyle, I don’t know how to read a tax return. Can you explain it to me? It just looks like a whole bunch of boxes and dollar signs.” So, I spent a few minutes walking her through a few key points from the return. She got comfortable with the numbers very quickly. Clients won’t question your bill or your calculations most of the time. They just want to know what their return means.
You may not have time for a walk-through meeting or phone call with every one of your clients during the busy season. But you should have time to create short video “explainers” for your top 25 or so clients — the ones who account for the majority of your revenue.
Your “explainer” video doesn’t need to be a Hollywood production. It just needs to be a short clip walking your client through their return. The key is to have your reassuring voice telling each client: “These are the numbers you need to know. Here’s what happened last year and here’s what you should be thinking about next year.” Isn’t that worth three to four minutes of your time?
Short video summaries will save you hours in the following ways:
1. Video companions eliminate unnecessary meetings. Most, if not all, of your clients’ questions can be answered in the video summary.
2. Videos are a great review tool that saves you lots of prep time before your next mid-year meeting with that client.
3. Videos can reduce the length of client meetings when you have them. Often clients don’t need an entire 30- to 60-minute meeting with you to go over their tax returns. They want some more context about what they are looking at.
Whether meeting in person or via Zoom, pull up the client’s return on your screen and walk them through the most important components of it. For example: “Here is your total income, and here’s where that number came from.” A client’s income is often way higher than they thought, right? So, you show them all their different income sources, such as business income, rental property, investment income, etc. Then show them how their marginal tax rate is identified on the tables. It’s second nature to you, but clients don’t prep tax returns all day long like you do. It’s reassuring for them to see what they owe (or get back) and how that number is calculated.
Batch processing efficiency
Consider batching together the returns of your business owner clients first since many of their issues are similar. Then batch together the returns of your high-net-worth investor clients. After the HNW group, batch together the returns of your highly compensated executives and then batch your retirees. The other reason I like batching returns is that your on-screen delivery will keep getting better the more you do.
Even if clients don’t have specific questions about their returns, they’ll appreciate the video summary. It differentiates you from all the other CPAs they’ve worked with and cements your position as a trusted advisor who is accountable, reliable, and patient.
Isn’t that better than sending clients a return with nothing else but a bill attached?
Before recording your videos, take a few moments to think about what each of the four groups is typically interested in. That way, you’re not starting each one from scratch.
Never recorded video before?
I know what you’re thinking: I hate what I look like on camera. Don’t let that stop you. They want to see your reassuring face. But if you’re still not comfortable with that, you can turn the video camera off and do a screen recording as a voice-over.
You’ll find over time the video is more impactful. If you don’t like the way the video turned out, just start over. It doesn’t take long. The more you practice, the faster and more efficient you’ll become with your videos. Again, no other CPA is providing this service for their clients. It’s a slight touch that will wow your clients and differentiate you from the competition.
How much time do we spend getting good at tax law? It takes years. But with video, in a matter of five minutes, you can differentiate yourself from the competition. Just put your face on camera and make the complex simple for them. Include a link to the quick video walk-through when you deliver each return to clients. There’s nothing busy people like better than having their questions answered before they ask them. For more about video recording for CPAs, see my article
Don’t stress out about creating your summary videos. You’re a CPA, not a professional actor. Nobody’s expecting you to be perfect on camera. Just spend 30 seconds before each video mapping what you’re going to say and then let it rip. The key is to be yourself. Again, when you’re batching your returns by client type, they’re likely to have similar issues, so you’re not creating each video from scratch. For instance, most business owners have multiple entities, business and personal expenses, employees, and exit-planning considerations.
Another thing that successful people have in common is they want you to respect their time. If you can cover what used to take a one-hour meeting in a three-minute video, you’ll be even more valuable to them than before.
What’s your take on adding video companions to your client tax returns? I’d
