7 Ways Accountants Provide Value to Their Clients 

accountant

“What am I getting for my money?”

When you provide a service and expect people to pay you, it’s reasonable to expect they will ask this question. In most professions, establishing your worth is the value proposition. How do you provide value?

The Old Story
If people within the profession were to talk about this among themselves, the answer usually centers on avoiding calamity.

  • We help clients minimize taxes legally.
  • We represent clients if they are called to the IRS for an audit.
  • Our forensic brethren help track down disappearing assets.

Unfortunately, clients view this as you keeping things the way they already are for a fee. They aren’t on the IRS’s radar. They have a happy marriage. Plus, they feel they are paying twice. First, they write those checks to the IRS and the state, along with the quarterly forms they sign. Second, they pay you for getting them to pay the IRS. You need a better story.

What Do You Really Do?
Let’s assume you have an ongoing relationship with a client that goes beyond quarterly tax filings. You have become friends. When he calls with questions, you don’t charge him for your time unless you are undertaking a project. You are a trusted advisor. Unlike a financial advisor or insurance agent, you don’t have a product to sell him, other than your time.

Here are seven ways you provide value:

1. It’s what you keep. You are part of the wealth-creation business. The government is a silent partner with every wage earner, entrepreneur, and deceased person in the country. Your advice legally helps your client keep and protect his wealth from taxes, so he can pass it to the next generation.

2. Philanthropy. People have sought immortality forever. Having your name on a hospital wing or museum gallery ensures your name will live for generations. Immortality doesn’t come cheap. You help plan and structure the gift, spreading its tax benefits and cost over several years.

3. Business advisor. According to a September 2013 Bloomberg report, eight out of 10 entrepreneurs who start a business fail within the first 18 monthsYou’ve seen this firsthand or read stories in professional journals. You can be the voice of reason whispering in your client’s ear, warning him or her against stupid mistakes.

4. Side employment. Plenty of people consult, write books, lecture, or have another side job in addition to their primary profession. It’s easy to think of that extra income as found money when it should be saved for retirement or other predictable future expenses.

5. Protecting clients from themselves. If you are friends with your client, it’s likely he might tell you things he wouldn’t confide to others. He may be working at a firm that just got FDA approval for a new drug. He might think buying a bunch of shares before the news breaks is “timing is everything” in action. You explain this is trading on inside information. The SEC will investigate. He will get caught.

6. Buy or lease? Own or rent? These are questions relating to a client’s tax position, not necessarily the quantity of assets or investments he or she holds. Leasing a second car might make sense for a client who uses a vehicle for work constantly, traveling from jobsite to jobsite. You understand the deductions picture for each client.

7. Retirement planning. Investments and insurance are handled by other professionals. You may or may not know them. The alternatives your clients have for funding their retirement are considerable, especially if they own their own business. You see the big picture and are their go-to person. Often the ads for financial products carry a tiny line in mouse print: “Consult your tax advisor.” That’s you.

Traditionally, accountants try to keep people out of trouble with the IRS while minimizing their taxes as best they can. That’s only the tip of the iceberg when it comes to the help you can provide. When you become their go-to person for financial decisions, they have compelling reasons to refer you to others.

Source: AccountingWeb – 7 Ways Accountants Provide Value to Their Clients

Leave a Comment


Broker Cyprus TopFX