five reasons business clients are ready for tax advisory services.
by 卡塔尔世界杯常规比赛时间
question: if half your tax clients were buying planning or advisory services for five times what they’re paying for tax prep, what would that add up to?
answer: a big cha-ching!
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this may be the season for tax filing, but accountants failing to leverage prep into planning and advisory are missing out on a lot of potential revenue.
the average annual fee for tax planning and advisory services is $2,351—five times the average annual tax prep fee of $459, according to a new study.
ironically, one out of six firms that offer these services is not getting paid for it. of the 74 percent that offer tax planning, only 62 percent are billing clients for the help, according to new intuit research.
for good reason, 35 percent of firms that do not offer tax planning or advisory services are strongly considering adding them as part of their growth plan.
among firms that offer these services, they do so for 35 percent of their existing clients. the top 27 percent of advisory firms deliver these services to more than half their clients.
planning vs. advising: the diff
tax planning is defined as tax projections of future liabilities, incorporating assumptions, ensuring compliance, and mitigating surprises in the upcoming year. this is typically a once-a-year service.
tax advisory is more ongoing throughout the year. it includes proactive, personalized strategies to minimize taxes and, crucially, measuring the savings that the advisor has made possible over short and long terms.
where the money is
current tax advisors say business owners are ideal candidates for advisory services for several reasons:
- owners know the value of planning.
- owners are used to paying for expertise.
- owners trust their compliance advisors and tax preparers.
- owners understand that tax planning simplifies tax prep.
- advisors have access to a variety of tax-saving strategies for businesses.
high-net-worth families and others with complex financial situations can also make good use of good advice and good planning. too often they presume their tax preparer is doing everything possible to optimize their tax situation. with a little education about potential savings, they can be persuaded to invest in a planning and advisory program.
tax planners need an average of about 2.3 hours to prepare a “typical” plan. the survey reveals that 63 percent of advisory firms are still using an hourly billing model. but the 28 percent who use value billing are justifying it with more communication about tax savings, which strengthens account-client relationships.
time well $pent
planning and advisory services work best with recurring appointments dedicated to
- understanding short and long-term goals,
- developing plans and monitoring implementation,
- educating clients about strategies.
planning and advisory meetings average out at about 50 minutes. the number of meetings per year varies considerably.
- 20 percent of advisors meet with tax planning clients just once a year.
- 31 percent meet twice a year.
- ten percent meet three times a year.
- 24 percent meet quarterly.
- 15 percent meet five or more times a year.
“tax planning and advisory services are an important extension of tax compliance services,” the survey says. “the avalanche of new tax legislation over the past five years and the impact of covid-19 on firms and clients heighten the importance of proactive tax planning and advisory services.”