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provided, which will support a
Showing value value-based billing strategy. Bringing value to

Tax shop strategy: Have you
to our clients ever looked at the first few pages of clients is about
requires a planned a tax return by one of the major tax taking that next step
preparation chains? They include
approach that a section of “savings.” For example, and being more to
includes tracking, “Claiming two kids reduced taxes by them than just a

storing, and reporting $6,000,” or “Itemizing mortgage interest transaction.
and charitable contributions decreased
on the impact taxes by $X,” and so on.
We scoff at this because the chain
of advice and did not create those savings. Our clients the new goals for the next engagement
decisions that have come to us because we go beyond inputs period and during the fee adjustment
been provided and on forms. We analyze, calculate, and process. When clients are presented
advise clients on strategies to gener-
with the list of accomplished goals, fee
implemented. ate actual savings or increase cash flow increases do not feel insurmountable.
and profits. But do we analyze actual Additionally, the discussion moves away
savings or increased cash flow post- from the added cost factors behind the
of advice and decisions that have been implementation? Do we track savings/ increase (i.e., firm wages increased 8%)
provided and implemented. increases based on the advice provided and to the value that has been and will
Remember the discussion on con- since inception? continue to be provided to the client.
verting to an S corporation or restruc- Creating a reporting template to For any of these strategies, track
turing business units to increase tax track the savings achieved for all advice communications with clients and create
efficiency while reducing administrative provided both past and present is a goals for the number of reach-outs. This
burden? Did we provide a projected an- good first step. Next is to summarize can be easily tracked in customer rela-
nual savings due to that advice at that the savings attained since the initial tionship management (CRM) software
time or in a follow-up communication? implementation of that strategy. Most but could also just be a simple document
Here are some ideas to assist in importantly, show that to the client. Not that all staff have access to. Reaching out
demonstrating the value we bring to the only does this provide a value for them to clients proactively for reasons other
client relationship. to anchor on, but it also moves the rela- than asking them for data or follow-up
Five-year analysis: Often, we find tionship from transactional to advisory questions shows them that you appreci-
ourselves in conversations with clients while moving clients away from being ate and care about them.
regarding situations that will affect them fee-focused.
over the next few years. We typically Annual “employee” review: Along Add value
recommend strategies to minimize with the other strategies, the annual/ The first step in adding value to any cli-
the tax bite, processes to improve, ongoing review is a great way to keep ent relationship is to change our mindset
or technology to implement in their all parties apprised of the progress made from “one on one” to “one to many.”
situations. Most often, we provide the toward previously established goals. We feel like we must handle each client
advice and expect the client to go and Like an employee review process, we, in request individually. When we change
do. We can make our value more obvious conjunction with our clients, annually our mindset to establishing processes
by creating a financial analysis of the establish goals for the relationship. Goals within our firm to deliver information
situation prior to the advice and then a can include: to many clients at once, the one client
pro forma financial post-implementation ■ Frequent financial check-ins, requiring higher-value service will rise
with the expected ongoing savings over ■ Estimated tax calculation reviews, to the top. Here are two easy ways to
the next five years. The client can then ■ Process/technology reviews, start adding value to many current cli-
see both the immediate and long-term ■ New technology updates, and so on. ent relationships:
value of that advice. The client will Then, at least annually with the cli- Knowledge base creation:
have a measurable return on investment ent, review and line out the completion Remove the fear of video. Think about
for the advice provided. As an added of the previously established goals. Ide- how often we encounter problems
benefit, we can clearly demonstrate value ally, this takes place while establishing or questions that are repetitive and

www.thetaxadviser.com June 2022 35