How to Open a Tax Business: The 3 Types of Clients That Will Fuel Your Growth

How to Open a Tax Business: The 3 Types of Clients That Will Fuel Your Growth

Starting a tax business or accounting firm might feel intimidating, but the truth is this industry is one of the most stable and profitable business models available to everyday people. At OpenMyTaxOffice.Com, we help aspiring entrepreneurs launch their own tax practices with proven systems, training, and support.

In this guide, we’ll break down the three main types of clients you’ll work with in the tax and accounting business. Understanding these groups will help you predict your revenue, manage your cash flow, and see why this is such a powerful opportunity.

1. Tax Season Clients (Transactional Customers)

The first type of customer you’ll work with is what we call the tax season client. These are individuals or businesses who come to you between January and May to file their taxes.

• Examples: W-2 employees, 1099 contractors, and small business owners.

• Revenue Potential: Anywhere from $150 to $1,500 per return, depending on complexity.

• Customer Source: Many come from Google searches and reviews, referrals, and your existing network.

While these clients only pay once per year, the real value is that they return year after year if you deliver excellent service. A positive review on Google or word-of-mouth can generate dozens of new tax season clients each year.

2. Recurring Clients (Bookkeeping & Accounting Services)

The second type of customer is the recurring client—businesses that need ongoing monthly services. These are typically small business owners who don’t want to manage their own bookkeeping or tax planning.

• Examples: Small businesses needing profit-and-loss statements, organized transaction records, and year-round tax planning.

• Revenue Potential: $350 to $2,500 per month per client, depending on transaction volume.

• Customer Lifetime Value: Many stay for years if you maintain quality and communication.

Recurring clients provide predictable monthly cash flow, which is why many tax pros say this is their favorite customer type. Just 25 clients paying $500 per month can generate $12,500/month—or $75,000 in just six months.

Like banks, accounting firms are “sticky.” Once a client trusts you with their finances, they’re unlikely to switch unless service is poor. That’s why recurring clients are the backbone of a stable tax business.

3. ER Clients (Emergency Tax Situations)

The third type of customer is the ER client, also known as emergency clients. These individuals are typically behind on taxes or facing IRS problems like wage garnishments, levies, or tax debt.

• Examples: Someone who is 3+ years behind on filing taxes or just received an IRS letter.

• Revenue Potential: Around $250 per return, often adding up to $750–$1,500+ per client when multiple years are filed.

• Customer Urgency: These clients need help immediately and are willing to pay for fast, professional service.

The beauty of ER clients is that they come in year-round, not just during tax season. They also often become long-term recurring clients after you solve their immediate problem.

Putting It All Together: A $175,000 Tax Business with 225 Clients

Here’s an example of how the three client types combine into a profitable business model:

• 100 Tax Season Clients at $250 each: $25,000

• 25 Recurring Clients at $500/month for 6 months: $75,000

• 100 ER Clients averaging $750 each: $75,000

That’s $175,000 per year in revenue with just 225 clients total—an average of only 19 clients per month.

And the best part? You don’t need complicated funnels, high-tech systems, or a large staff. With the right training, software, and marketing strategy from OpenMyTaxOffice.Com, you can run this business from home with minimal overhead.

Why OpenMyTaxOffice.Com Is the Best Way to Start

Most businesses require heavy startup costs, tech knowledge, or years of trial and error. The tax business is different—it’s needed by everyone, every year.

At OpenMyTaxOffice.Com, we make it simple to launch your own tax business or accounting firm by giving you:

• Proven marketing strategies to attract clients.

• Training and software to run your office smoothly.

• Support so you never feel like you’re doing this alone.

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Final Thoughts

Whether you want to know how to start a tax business from scratch or how to build a full-fledged accounting firm, the path is clear: focus on the three types of clients (tax season, recurring, and ER clients), and you’ll have a profitable, recession-proof business model.

Ready to launch your own tax office? Visit OpenMyTaxOffice.Com today and book an appointment to get started.