Helping individuals experience financial freedom is what you do best. But what if you could also support your clients’ tax planning needs? There are a few reasons why you might want to add this service to your offering. With the right CPA firm on board, it could be easier than you think.
Here are a few benefits of partnering with a CPA firm for client tax planning.
Differentiate your RIA firm.
The investment advisory space is highly competitive. Giving your clients access to unique service offerings—such as tax planning for their investments—is one way to set your RIA firm apart. The more value you bring to your clients, the more loyal they will be to you, which can also increase your firm’s valuation.
Avoid tax surprises.
It’s critical to understand the tax consequences of the investments you make as an RIA. You don’t want your client to get hit with a significant tax bill on April 15—and you certainly don’t want to be the reason for it. But with tax laws constantly shifting, assessing tax consequences can be difficult and time-consuming. Having a trusted CPA on your team can help to take this stressor off your plate.
Be a hero.
It’s tough to be an expert in both investments and taxes. Partnering with a CPA firm lets you quickly bring in a tax expert for your clients when needed. This frees you to identify potential tax issues without worrying about how you’ll help your clients solve them.
If you spot a potential tax issue with a client’s investment, asking the client to consult their tax preparer may be like rolling the dice. Lots of people don’t have one. Those who do may not get a timely answer, especially if it’s a one-off question. What’s more, it can be hard to know the quality of advice you’re getting from someone’s tax preparer. Not everyone gives good advice!
Partnering with a CPA firm allows you to quickly connect your client to a CPA who can provide quality advice without costing your client money. Even a half-hour of focused tax planning advice can be hugely valuable for your client, especially if they can’t get it anywhere else.
Partner with the right CPA firm.
The right CPA firm is one that specializes in the investment advisory space and aligns with your service model. Having this level of comfort with a CPA allows you to seamlessly support your clients’ tax planning needs, allowing you to increase the value your RIA firm provides.
At Elevate, we not only have RIA expertise but also a history of business and individual tax planning. In addition to supporting your RIA firm with tax and business consulting, we can partner with you to offer tax planning to your clients. To learn more, contact us today.