5 tips to get customers billed more for tax planning

What is the accounting profession's greatest tragedy? It is the fact that most small business owners and individuals believe that their accountant will save them tax, while in reality most tax accountants will never reduce any tax owed by anyone. For the few accountants trying to save their clients money, most don't know how to communicate the value they create for their clients in such a way that they can bill for that service.

If you're looking for a strategy for building a successful, fast-growing, and profitable business that will help your customers save millions of dollars each year, you've come to the right place with tax planning as a service. Done right, fees can be five to seven times higher than tax preparation, and customer value can be exponentially higher.

Before we get into pricing and packaging, let's take a quick look at the purpose of a tax plan, which is to fully analyze a customer's life and affairs, get them in better shape, and pay less tax. For many accountants, tax law is too complex to understand all of the options available, but it is not necessary to understand all of the tax strategies to start selling tax plans. Even if a company can save a customer three to five times the cost of a tax plan, it is still better off than without it.

In fact, at a recent Tax Planner Roundtable, attendees stated that it usually only takes four or five strategies to come up with a good tax plan for a typical client. One of the most popular tax planning strategies is business optimization, which is the process of determining whether the client is organized into the best corporate structure. Approximately 75% of small businesses are Schedule C organized. But it rarely makes sense for a business owner to stick to Schedule C. Often times, when you move to an S Corporation, Partnership, LLC, or even C Corporation, you will be able to cut your taxes significantly.

Here are five ideas of what other successful companies are doing right now and what your company can do. The most important point to remember is that tax preparation itself is not very profitable. For this reason, tax planning should be included in the range of services of every successful company and ideally combined with one or more other services. Together, these proven packaging strategies can not only help you increase prices, but also create value for your customers.

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