After attending 15 IRS forums over three years and hearing the same struggles from thousands of tax professionals, Roger Harris, EA, knew it was time to address the elephant in the room. In this episode of Federal Tax Updates, Harris and co-host Annie Schwab, CPA, bring together three Padgett experts to tackle the recurring challenges of finding staff, pricing services properly, and growing a business.
“We thought we’d do something a little different today,” Harris explains, noting that while everyone’s waiting for more details on tax legislation, the business challenges facing practitioners deserve immediate attention. The result is a masterclass in transforming an overwhelmed practice into a sellable business.
The Talent Crisis That Isn’t
Jeff Phillips, Padgett’s CEO and founder of staffing firm AccountingFly, kicked the conversation off with a truth bomb: “There isn’t a talent crisis when you can hire remotely.”
Padgett has the numbers to back it up. Unemployment in accounting sits at just 2.1%, half the national average. Meanwhile, small firms face an annual turnover rate of 15 to 20%. In other words, everyone who wants a job has one—but they’re constantly changing jobs. The problem isn’t a lack of talent; it’s looking in the wrong places.
“If you’re in Tulsa, Oklahoma, and there are 600 CPAs in Tulsa, you have a one in 600 chance of prying a hire loose,” Phillips explains. “If your job search is national, now you’re talking about 60,000 potential hires—hundreds of times greater opportunity.”
Phillips advocates for what he calls the “new talent stack,” a three-part approach to staffing:
- Core staff: Your essential managers can work locally or remotely. AccountingFly receives 700 applications weekly for remote accounting positions and fills jobs within 30 to 35 days.
- Freelance talent: Project-based professionals for tax season rushes, maternity covers, or specific engagements. A third of knowledge workers now prefer freelance arrangements over full-time positions.
- Offshore support: Administrative roles and routine tasks can be handled at a fraction of domestic costs, helping maintain that crucial 35% labor-to-revenue ratio.
The easiest starting point is virtual assistants. “You can get virtual part-time assistants that are based in the U.S. through services like BELAY,” Phillips suggests. “They can work as little as ten hours per week handling all your inbound email.”
Schwab validates this shift from her experience: “I’ve never heard anybody complain, ‘Oh, I can’t do this anymore’ or ‘This was too much of a headache.’ Once you embrace going remote, I don’t see anybody turning back.”
But there’s a catch. To afford quality remote talent, you need money. That brings us to the second pillar.
The Pricing Problem Nobody Wants to Admit
“We don’t often hear firm owners articulate that they have a pricing problem,” says Amanda Aguillard, Padgett’s pricing expert. “We hear them say, ‘I need more help, but I can’t afford it,’ or ‘I’m working too much.'”
These aren’t separate issues; they’re symptoms of chronic underpricing. When firms don’t charge appropriately, owners become martyrs, absorbing excess work rather than hiring help. Aguillard sees this pattern constantly. “They’re really doing a disservice to their families and their employees, and ultimately leaving their clients in a bad spot.”
The fear of raising prices often stems from scenarios that never materialize. Harris shares a common concern: “All of my clients go to the same church and they’ll all talk to each other and they’ll all get mad and I’ll lose them all at once.”
Aguillard responds flatly: “I’ve never heard of that happening.”
The data backs her up. When firms implement strategic price increases:
- 90% of clients accept them without complaint
- Total revenue never decreases
- Either client count drops slightly (less work, same money) or all clients stay (more money for hiring)
Timing matters. “January is a terrible time to raise fees,” Aguillard warns. “You’re not going to be able to hire a tax person to help you in January.” Instead, raise prices right after tax season when motivation peaks. “A lot of folks will say, ‘I’m never doing it like that again, ever.’ So just rip the band-aid off.”
The stakes extend beyond immediate relief. With 75% of firm owners approaching retirement, underpriced practices become economically worthless. “You’re saddling your family with a business that has no value,” Aguillard explains. Buyers often immediately raise prices to market rates, capturing value the original owner left on the table.
“Get paid for what you know,” Aguillard emphasizes, not for accumulated minutes. “That 15-minute return represents years of education, expertise, and administrative support. It’s value that deserves compensation.”
Once you align pricing with market reality, you have the resources for hiring. But to confidently raise prices and attract ideal clients, you need the third pillar.
Marketing: Don’t Ignore Your Digital Storefront
“Accountants absolutely hate marketing,” says Katarina Thomas, Padgett’s marketing specialist. But she quickly reframes the conversation. Marketing isn’t about aggressive client pursuit; it’s about maintaining professional presence in a digital world.
“Your website, your Google Business Profile, your social profiles—those act as your storefront,” Thomas explains. Even referrals expect to find you online before making contact. Without this digital infrastructure, you’re invisible to potential clients and less credible to existing ones.
The foundation starts simply:
- Google Business Profile: Verify it, update hours (especially during tax season), add current photos, and maintain accurate contact information. Google prioritizes its own ecosystem, so an optimized profile dramatically impacts search visibility.
- Reviews: Reviews are the most underutilized tool available. Firms that systematically request reviews receive them simply by asking. As Harris notes, “Reviews can be even more valuable than referrals, because one review reaches thousands, not just one potential client.”
- Basic social presence: You don’t need to post daily—just stay active and relevant where it matters most.
Marketing provides strategic value beyond client acquisition. “When you know you can attract new clients, you’re empowered to release problematic ones,” Thomas explains. It creates confidence to raise prices, knowing you can replace anyone who leaves.
The current tax law uncertainty presents golden opportunities. “Make sure you’re the first person your clients hear from when there’s news,” Thomas advises. You don’t need to provide a detailed analysis—just reassurance: “We’ve got you. Don’t worry. More’s coming.”
For firms approaching a sale, marketing directly impacts valuation. In a crowded market, buyers seek practices with growth potential and visibility, not just client lists.
Building Your Sellable Firm Starts Now
The three pillars of hiring, pricing, and marketing aren’t sequential steps but interconnected systems. As Schwab observed during the discussion, “You need to address all three simultaneously. They all affect each other.”
The math is simple but powerful:
- Remote hiring expands your talent pool 100-fold
- Proper pricing funds quality staff
- Marketing creates confidence for strategic decisions
Together, they build systematic, scalable businesses.
With 75% of practitioners approaching retirement, the market is flooded with identical practices—overworked owners, underpriced services, and outdated models. Standing out requires demonstrable business systems that operate without the founder’s constant presence.
“The firms that command premium valuations,” Harris concludes, “have a good hiring department, properly priced clients, and profit growth.” In today’s buyer’s market, that combination makes you the standout everyone wants to acquire.
The time for action is now. Start with one small step: hire a virtual assistant, raise prices on your worst clients, or claim your Google Business Profile. Each action builds momentum toward the ultimate goal—a practice that serves you today and rewards you tomorrow.
Listen to the full episode for detailed implementation strategies and real-world examples from practitioners who’ve successfully made this transition. Whether retirement looms or you’re just starting out, these principles offer a path from exhaustion to a sustainable, profitable practice that others will actually want to buy.
And, for help with hiring, pricing, marketing, and the many other complex elements of running a firm, learn more about having your firm join the Padgett network.