Referrals into Your Accounting Practice

Referrals are the backbone of any CPA or accounting business in Pennsylvania because they provide some of the best new clients. They've already been pre-vetted, you might say; the people referring them know you, respect you, and believe you’re a good fit for the potential client. Referred clients often become your most valuable clients. But how do you get these referrals started?

Referrals are a two-way street. Although some altruistic souls may recommend you out of the goodness of their hearts, an incentive program increases the number and quality of referrals.

Solid referral partners come from various sources. Try to nurture partnerships in all of them to maintain the flow of high-quality potential clients.

• Your own satisfied clients are a perfect place to start when seeking more clients. Reach out to clients in your preferred niche who are high quality and who generate the greatest return.

• Network with PSTAP members. Our membership covers a wide variety of specialized CPA, tax, and accounting professionals from across the state. Foster strong relationships with several members who may be in a different niche than you and agree to pass on clients to each other when there is a good fit.

• Build strategic partnerships with people who offer complementary services, such as bankers, insurance agents, real estate agents, and the like.

• If you specialize in a particular industry, attend conferences in that field and make connections. You don’t need to be in person only - reach out virtually at virtual conferences as well, and on platforms like LinkedIn.

Referrals are a great way to expand your practice or shift your business focus. For instance, if you want to decrease a certain aspect of your business (like taxes or bookkeeping) and increase your work in a field you really enjoy (like financial planning, working with medical offices, or advising business start-ups), a robust referral program is the best way to make that change organically. Specialization offers a greater chance of business success, because you will be seen as a master of one (or two) niches rather than a jack-of-all-trades.

There are several steps to take in order to get the kinds of referrals you are looking for.

• Define your ideal referral. What niche or industry do you prefer? What services do you wish to offer? What business size or revenue range? What demographic?

• Choose client incentives that work. You can reach out to your best clients and the clients in your ideal niche, make a personal appeal, and offer them an incentive that you know they will respond to: a free hour of strategic brainstorming, a donation to a favorite charity, or a discount on their next invoice. Use your knowledge of your clients to customize the incentive. Have a clear policy defining when the benefit or incentive is delivered; for example, at the signing of the agreement or the first paid invoice for that referral.

• Develop a strategic partnership plan with other professionals who share your target market but don’t offer competitive services. This could also include other accounting firms that offer different services than you do. The agreement or expectation should be mutually beneficial; together you can create a framework of what those benefits can look like.

• Make referrals as easy as possible. Give your partners or clients a business card, email, or link they can use. If you can get your referring person to provide a virtual introduction, where they send a message to both you and the potential client and introduce you to each other, the referral will be much more powerful.

• Keep track of who referred whom. Send thank-you notes to those who send you referrals, whether the referral becomes a client or not. People like to know their efforts are appreciated, and they will likely continue to refer.

Keep yourself present to your ideal clients and your business partners, offering them value, and they will remember you and provide you with the best referrals.