The CPA Industry Is in Turmoil. Here’s How to Keep Your Clients Above the Fray.

Rising labor costs and inflation have impacted nearly every industry in the last couple of years—the CPA industry is no exception. As a result, many CPA firms have had to raise fees, release clients, and even limit the amount of work they accept.

What we’re hearing in the RIA realm: Good tax help is hard to find.

In addition to creating challenges for your firm, this situation creates a special conundrum for you when advising clients. How do you, as their trusted investment professional, help your clients manage their tax preparation and review needs?

Here’s how to keep your clients above the fray.

Explain the situation.

Given that most people aren’t avid readers of Accounting Today, it’s likely these CPA price hikes will come as a surprise to your clients. To prevent an unpleasant sticker shock, make sure your clients are aware that fees for tax services are going up, and they will most likely stay that way.

How much will they go up? According to a survey of 232 CPA firms conducted by Rosenberg Associates , a consultancy that works with CPAs, respondents most common planned fee increases is in the 10%–13% range for 2023.

Advise your clients to be good clients.

This is not the year to send your tax information to your CPA on April 12. Due to staffing shortages and a need to retain talented CPAs, accounting firms are less hesitant than in the past to jettison problem clients. To keep your clients off their CPA’s naughty list, encourage them to be responsive, organized, and pleasant to deal with.

Consider a non-local solution.

If your clients are having a hard time finding a local CPA, recommend that they expand their search to include additional localities. Like many professional services providers, CPAs have become accustomed to providing services remotely. In the end, your client may find the convenience of electronic communication to be a benefit.

Save the day with a team of in-house CPAs.

What if your clients could go to your firm for tax services? Considering the state of the CPA industry, this solution could take worry off your clients’s plates: they’d get the tax services they need from their trusted RIA.

At Elevate, we make this possible through our Elevate RIA Tax Solutions (ERTS) service offering. ERTS helps you easily add tax preparation and review services to your practice by giving you access to a team of seasoned CPAs. We deliver tax service to your clients under your firm, brand, and voice, allowing you to add value to your family services offering.

Intrigued? Contact us today to learn more about how we can help you keep your clients out of this ever-evolving fray.