Overseas Tax Season Arbitrage

A business insight from Shepherd's success reveals targeting overseas bookkeepers as a high-value service offering for US companies, particularly during post-tax season when demand spikes.

Key Points:

• Target Market Insight:

  • Companies seek bookkeepers after experiencing tax season pain
  • Accounting firms need additional bookkeeping capacity
  • Small businesses want affordable bookkeeping solutions

• Service Model:

  • Provide overseas bookkeepers at ~75-80% lower cost than US rates
  • Focus on quality talent in Philippines and Latin America
  • Higher price point than virtual assistants, leading to better profit margins

• Business Performance Metrics:

  • Customer lifetime value 40-50% higher than other services
  • Customers hire multiple bookkeepers
  • Strong return on ad spend (ROAS) of 5.8-10.7x

• Growth Strategy:

  • Target companies right after tax season
  • Partner with accounting firms needing additional capacity
  • Focus marketing on pain points around tax season preparation

This model works particularly well because bookkeeping customers:

• Have higher retention
• Hire multiple people
• Pay higher rates than virtual assistant services
• Have predictable seasonal demand spikes