Weekly Round-Up: Facebook, Twitter, and LinkedIn…Law Firms Take Notice

The popularity of online social media has exploded recently, and many tax and accounting firms are taking a close look at the benefits of participating in “what has become a normal part of life for millions of people in their personal lives,” according to a new article by Rusty Little of Dow Lohnes Price.

While online communication tools have been around for a while, Little notes, many skeptics watched and waited to see if they “would become meaningful business applications.” But now, the game is passing them by, and these firms need to decide how to take advantage of social media, he explains.

Little notes that online social networking “can be a useful tool for many firms by increasing their brand awareness, showcasing their expertise, and communicating with existing and potential clients.”

He concedes that the benefits “will be difficult to quantify in the beginning, and some intangible benefits may never be quantifiable.”

However, according to Little, effective use of online social networking allows tax professionals the ability to share their expertise in order to “gain credibility in the marketplace and to demonstrate real expertise.”

Social media offers a more efficient means of sharing information, he writes.

For Little’s complete article on how tax firms might use online networking as part of their business strategy, check out this week’s issue of the Weekly State Tax Report.

In other developments, the Miami football scandal raises questions about tax-exempt athletics, Kelly Phillips Erb, the resident Taxgirl at Forbes writes.

Kim Reuben at the Tax Policy Center takes a look at the federal debt drama and what it means for state and local governments.

The Texas margin tax experiment is failing due to collection shortfalls,  Joseph Henchman of the Tax Foundation reports.

By Priya D. Nair

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