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How A CPA Transformed His Tax Prep Side Practice to a $30K MRR Full-Service Firm

Growing up with parents who owned a tax firm, Alan was exposed to the world of taxes from an early age. Memories of assisting his father in preparing tax returns by hand, visiting clients’ homes with tax forms in hand, and witnessing the transformative power of his parents’ work left a lasting impression. Initially, Alan resisted the call to accounting and sought to explore other career paths, but his love for numbers and the desire to help individuals understand and navigate the complexities of taxation remained strong. And eventually led him to his dream accounting firm. 

SUCCESS SNAPSHOT

Armed with a new proactive approach to client acquisition and a new pricing structure, CPA Alan was able to transform his side practice into a successful firm that generates $30K in MRR. Working closely with his dream clients, anticipating their needs, and identifying opportunities for financial optimization, Pruitt Prep CPA accelerated its growth.

By engaging with clients on a regular basis and providing proactive guidance, they delivered exceptional value and achieved better outcomes for both the firm and its clients.

Laid Off & Upgraded 

While working in corporate accounting, Alan couldn’t help but feel the lack of caring and respect for both the employees and the clients. He observed the shortcomings of larger companies, often prioritizing their own interests over the well-being of employees.
 
Witnessing instances of loyal employees suddenly losing their jobs due to decisions made solely in the company’s best interest fueled Alan’s desire to build a different type of organization—one that genuinely prioritized people. And so, in 2018 he quietly started Pruitt Prep CPA as a tax filing side practice. But Pruitt Prep CPA didn’t stay quiet for long… If fact, in 2020 his “small” firm hit its first six-figure revenue goal and then doubled it a year later. 

“GOING INTO 2022 I WAS JUST LIKE, THERE MIGHT BE A TIPPING POINT HERE"

 
As luck would have it, fate took control of Alan’s path and he was laid off from his corporate job. He now cites it as one of the best things that’s ever happened to him… It gave him the clean break he needed to commit to his firm full-time and forced him to take action and build his dream accounting firm. 
WATCH THE FULL INTERVIEW AT THE BOTTOM TO FIND OUT WHAT MADE IT POSSIBLE FOR ALAN TO GENERATE $200K IN YEARLY REVENUE, WORKING PART-TIME

Veering Off The Traditional Accounting Path

Though Pruitt Prep CPA had a somewhat traditional start, Alan quickly identified the pitfalls of following in the footsteps of other accounting firms. Alan’s initial marketing efforts involved some online advertising, but the majority of his client base grew organically through referrals.
 
By delivering exceptional service and ensuring clients felt heard and understood, Alan created a positive reputation that generated word-of-mouth referrals. The complexities of accounting and tax can be overwhelming for many, and Alan’s ability to simplify and streamline the process helped differentiate his firm from the competition.

"I'D DONE A LITTLE BIT OF ONLINE ADVERTISING, JUST TRYING TO GET MY NAME OUT THERE. BUT A LOT OF IT WAS, YOU KNOW, NATURAL REFERRALS."

Recognizing the potential for growth beyond tax returns, Alan sought to shift his firm’s focus from reactive to proactive client support. This shift involved guiding clients throughout the year and providing valuable insights and advice beyond the scope of tax return preparation. By becoming proactive, Alan aimed to achieve better outcomes for his clients while also increasing the value of the services his firm offered.
 
Inspired by his desire to be more proactive and provide comprehensive year-round support, Alan began the search that would revolutionize his accounting firm. In his pursuit of a program that would support his firm’s transition to a proactive model, Alan encountered a less-than-ideal experience with a previous provider. Skeptical but willing to give it another try, Alan finally connected with our founder Tyler and joined the Create Your Dream Firm program.

The Transition from Tax Returns to Monthly Recurring Revenue

Recognizing the importance of continuous improvement and acknowledging his own limitations, Alan embarked on a journey to transform his firm’s services and expand its reach. And inside the Create Your Dream Firm program, he discovered better strategies and resources that propelled his firm to new heights. Alan understood that to thrive in the competitive accounting industry, his firm needed to be proactive and offer comprehensive support to clients. 

"IF WE FLIP AND GET ON THE OTHER SIDE OF THIS AND BE MORE PROACTIVE WITH THEM AND HELP THEM THROUGHOUT THE YEAR, THAT GIVES THEM A BETTER RESULT. AND IF I'M BEING HONEST ON MY END, WE CAN ALSO CHARGE MORE FOR THAT AT THE SAME TIME. SO IT SERVES BOTH OF US EVEN BETTER. "

Instead of merely focusing on tax returns, Alan’s firm now offered year-round support, providing clients with guidance and advice to save on taxes and streamline their business’s finances. By engaging with clients on a regular basis, Pruitt Prep CPA was able to deliver exceptional value. Alan’s team established strong relationships and ensured that clients felt heard and understood.

"IN MY SPECIFIC CASE, MOST THERAPISTS AREN'T NUMBERS MINDED...YOU KNOW, DIFFERENT KIND OF MENTAL SKILL SETS. AND SO THAT WAY I CAN PARTNER WITH THEM AND, AND HELP THEM OUT ON THE BUSINESS SIDE, ON THE TAX PLAN SIDE, ON THE REVENUE STREAM SIDE."

Recognizing that his clients were experts in their respective fields but lacked the necessary expertise in accounting, tax planning, and business marketing, Alan positioned himself as an invaluable partner. Through this collaborative approach, Alan’s firm helped clients navigate complex financial matters, enabling them to focus on their core competencies. 
 
Alan’s commitment to continuous improvement drove him to fine-tune and expand his firm’s services from tax prep to full-service accounting. He began offering various service packages, designed to fulfill the needs of his dream clients at ALL stages of their businesses. He also recognized that providing exceptional service meant adapting to the evolving needs of his clients. With the support of Dream Firms, Alan continually enhanced his service package, adding new elements that added value to his client’s businesses. His firm accelerated from a one-off tax shop with $0 MRR to $30,000 of monthly recurring revenue.
 
Skip to 37:00 in the video BELOW for more details on Alan’s service packages. 

Finding His Dream Accounting Clients 

As he reflected on his existing client base, Alan realized that a significant portion consisted of mental health professionals, including therapists and counselors. This revelation came as he recognized the success of his wife’s private practice in the mental health field. With coaching guidance he accessed in our Create Your Dream Firm program, Alan embraced the idea of specializing in serving mental health professionals.
 
Initially hesitant about narrowing his focus to a specific industry, Alan soon discovered the tremendous benefits of his decision. Having a personal familiarity with the challenges and intricacies of mental health practices (thanks to his wife’s own therapy practice), Alan was able to provide valuable insights and support to his clients. Many therapists lacked expertise in financial matters, making Alan’s assistance with business management, tax planning, and revenue streams highly valuable.

“BEING A YEAR AND A HALF PLUS INTO IT (CHOOSING A NICHE), IT’S LITERALLY BEEN ONE OF THE BEST DECISIONS.”

Choosing mental health professionals as his dream clients proved to be one of the best decisions Alan made for his accounting firm. By aligning his services with their unique needs, he forged strong partnerships and achieved remarkable success in helping his clients grow their practices. And the best part of all, these were his dream accounting clients. They were ready and willing to pay a premium price for Pruitt Prep’s services because they too recognized the value Alan was delivering.

A SPECIAL SECTION ON BIG SEXY & DEALING WITH PROBLEM CLIENTS

Alan has 99 5-star Google reviews, but if you do a quick Google search, you’ll see that his average review is 4.9. Without a doubt, this is a phenomenal rating, but what brought down Pruitt Prep CPA’s perfect 5-star rating? BIG SEXY.

If you did Google Pruitt Prep CPA, you’ll know that Alan ALWAYS strives to provide the highest level of service to his clients. It shows in our interview with him, it shows in his reviews, and it shows in his relationship with his clients. But every now and again, you get a bad egg. Big Sexy is Alan’s bad egg. And Alan’s response to this nightmare client is how any and every firm owner should handle criticism. Alan knew he and his team had done everything on their end, but he kept his response cordial and professional, letting the other 99 reviews do the talking for him.

Delivering on Our Promises:

Together, we helped Alan build aspects of his service offers that have meaningful value and a real result that his clients will get excited about, but does not require his time. With his ever-growing profits and constantly expanding patronage of dream clients, Alan’s also grown his team significantly. What once started as a small but successful side practice has blossomed into the go-to accounting firm for Houston area therapists. Alan built a successful practice by himself, but it wasn’t until after he joined the Create Your Dream Firm program that he built his dream accounting firm. 
 
Tyler’s dedication to fulfilling the promises made during their initial conversation proved invaluable. The Create Your Dream Firm program exceeded Alan’s expectations, delivering results that aligned with his vision for proactive client support and higher profits. The partnership with Dream Firms allowed Alan to enhance his firm’s capabilities, streamline operations, and effectively serve clients with a comprehensive suite of services.
DREAM FIRMS NOTE: WE HIGHLY ENCOURAGE YOU TO WATCH ALAN’S FULL INTERVIEW FOR DETAILS ABOUT HIS PRICING STRUCTURE, HOW HE FORMED HIS SERVICE PACKAGES, HOW HE DEALS WITH TROUBLESOME CLIENTS, AND HOW HE EXPANDED HIS REACH TO BE FEATURED ON THE LOCAL NEWS, PODCASTS, AND NICHE CONFERENCES.
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