Making money from advisory/OBBBA

[strongsilence]

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:

• The demand for advisory services in accounting is growing. Clients today want more than traditional accounting; they want a strategic partner who can provide guidance to help them navigate the tax landscape, plan their finances, and more. 
• Want to sell advisory services? Start by analyzing your client base, recognizing patterns in service requests, and then tailoring offerings based on their needs.
• A great first step to landing your first advisory engagement is to tap into your existing client base. Reach out to current clients who may benefit from additional services, and explain how you can help them address their specific challenges and contribute to their growth.
• Consider bundling advisory services with existing offerings to highlight their comprehensive benefits. Sometimes referred to as packaging advisory services, this is an excellent approach, especially if you’re already providing free advice to your clients. 
• Successfully selling advisory services requires you to communicate your value, focusing on outcomes and ROI. Being consultative rather than salesy and focusing is a must.

[ptax255]

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.

[strongsilence]

I'm impressed that you can do tax planning "on your feet" in a face-to-face consultation.

[Taxes-by-Rocky]

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.

[strongsilence]

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.

[Karl]

I use Ignition and I use their three-tiered model to sell planning services upfront. I send my proposals in January. Tier 1 is just tax prep, Tier 2 adds "quick questions" (no calcs, no opening planning software, no extensive research), and Tier 3 is one (or more) deep dive planning session(s). I quote it all flat-fee based on complexity of the tax situation and what they want to cover (or what would be applicable in planning).

If you don't currently use Ignition, get a referral link so you and the referrer get a kickback. If you don't have someone to get a link from, reach out to me and I'll share mine, I don't think it works to put links in here. My last name is Strube, find me on Google or LinkedIn.