The new tax laws present opportunities for $$ from tax planning. My question is how to start. By contrast I already know that clients come to me for preparation and will pay me for that service. And the "sale" is already made. But with planning, I don't know how to reach and then persuade clients to pay me my time spent for planning. (And this results in less motivation to work this summer, which is another matter entirely.)
Ideas?
1. One idea is sending an introductory letter to all my clients with a short summary of the relevant changes, then call or email to ask if they would pay for planning.
2. Below is the summary for selling tax planning from ignition. Those ideas are helpful.
3. What clients in your book are the ones who will benefit (or be harmed) most from the OBBBA? Mine are folks who are charitable, those thinking about when to take Social Security and those with children under 18 who might want to start funding Trump accounts. I'm looking for "low hanging fruit"- the one that wilt a little push from me would likely pay handsome fees.
4. My planning fees run $200 to $300 for 1-3 hours of work. Are they too low?
Thank you! I appreciate you!
Ignition practical guide:
I also plan on sending an email to all clients with a summary of the changes where there could potentially be an action item on their end. I plan to say something like do not email back with a question, but to schedule a consultation if they'd like to dive deeper for their specific situation. Fee $200/hr billed in 30 min increments.
I'm impressed that you can do tax planning "on your feet" in a face-to-face consultation.
While I consider the OBBBA largely a continuation of the TCJA (for individuals anyway), there is certainly a good amount of work that can be done to optimize older, middle-income taxpayers' liabilities for this year and beyond. Between: (a) income planning (e.g., the timing of income, Roth conversions, social security, upcoming RMDs, etc.); (b) deduction planning (e.g., timing of SALT payments, PTET payments, charitable donations, QCDs, etc.); and (c) collateral damage (e.g., phase-outs, NIIT, AMT, IRMMA, etc.); it should not be too difficult to impress upon the clients the need for sound tax planning services. While many of these tax items are 'optional' and multi-year in nature, and the possibility for new tax law before year end still exists, a solid tax planning package to address the inter-related / inter-dependent (and compressed) tax liability computation would go a long way. ProSeries? Anyone? Bueller?
Rather than a shotgun approach as a new service to your entire client tax base, I'd suggest reviewing select taxpayers and their specific circumstances since you're likely to find enough 'low-hanging-fruit' in a small group of clients for which your advice (and their participation/commitment) will likely pay significant dividends - to both of you, whether now or in the future. One windfall (moderate or large) has a tendency to retain a client for many years.
One windfall (moderate or large) has a tendency to retain a client for many years.
Sage advice.
ProSeries? Anyone? Bueller?
LC's tax advisor has been useful for me, although it can be improved. I haven't yet paid for the complete package but I plan to do that this year.
Thank you for your response.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.