Client Goals: A Hidden Goldmine for Better Tax Planning

If you were asked how well you know your clients’ goals—whether it’s their life, business, or financial goals—what would you say?

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If you struggled to answer, don’t fret because you’re not alone. Many firms frequently overlook (or even miss) the importance of client goals in tax planning. It’s actually a big gap in the tax planning process, and it isn’t helped by the fact that tax planning is all too often left until the last minute, which means client goal-setting is usually rushed—if it’s even done at all.

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But skipping out on client goal-setting impacts both firms and clients because it results in less effective and less personalised tax advice. 

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In this article, we’ll help you jump on this opportunity to get to know your clients and their goals better so you can deliver tailored tax advice and better client outcomes.

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Missed Opportunities: 3 Reasons Why Client Goals Get Ignored in Tax Planning

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Skipping goals is not only bad for clients (who are often left with generic advice that doesn’t address their needs in a meaningful way), but it’s also bad for firms because this can lead to dissatisfied clients and (potentially) damaged relationships. 

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In the worst cases, ignoring client goals can even impact retention if unsatisfied clients look elsewhere for the personalised tax planning they need.

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At this point, you might be wondering, ‘Why is it so common for firms to overlook client goals?’. Well, there are many contributing factors to why it happens, so let’s go through a few of the most common reasons why.

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1. Procrastination aka the Last Minute Rush

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Everyone knows that getting their taxes done early can save mountains of stress come tax season. Nevertheless, that didn’t stop the near 800,000 taxpayers who waited to file until the very last day, and a shocking 33,000 of them waited until the final hour—talk about suspense!

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Even worse is the 1.1 million people who missed the deadline entirely and all the additional stress and late fees that entails. But why must we keep doing this to ourselves? It’s the same 31 January deadline every year, after all. 

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Because in the panicked rush to get those last-minute taxes finished on time, client goals and goal-setting get sacrificed due to a lack of time or energy, which means clients miss out on opportunities for tax savings and other efficiencies.

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It’s a vicious cycle but it’s possible to break out of it with a proactive approach that encourages tax planning throughout the year.

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2. Taxes are Seen as a Burden, Not an Opportunity

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Most people see taxes as a burden or obligation and therefore put off doing them for as long as they possibly can. This mindset not only feeds into the procrastination we just discussed, but framing tax planning in this way also sets a negative tone from the start, which only compounds the issue.

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As accountants, don’t underestimate your ability to set the tone when it comes to taxes and goal-setting, either. If you approach it as a chance to get to know your clients, save them money, and build trust, it can completely change the vibe from being a burden or necessary evil to a collaborative opportunity where you’re working towards common goals. 

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Done right, it might even help your firm expand from a mere service provider to a more proactive, advisory role or even strategic partner.

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3. Tax Planning is Too Complex

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Tax planning can be complicated as regulations change all the time, and many clients have been conditioned to only care about compliance instead of seeing tax planning as an opportunity to develop a tailored tax strategy based on their goals.

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Additionally, many small businesses owners have a tendency to think of tax planning as only something for the major corporations or the ultra wealthy. They may not even be aware of how goal-setting can help fuel a tax planning strategy that helps them minimise their tax burden—and it’s up to you to show them otherwise.

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Also, the way that we do taxes also encourages more short-term thinking on a year-by-year basis, and it can be easy to get so focused on maximising the short term that we miss out on long-term opportunities and other benefits further down the road. 

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That’s why goal-setting can be so effective—it can help shift client perspectives toward the long-term and set them up for success for years to come.

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Capturing Client Goals with TaxTorch

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Now that we know why client goals get ignored so often, let’s talk about how Tax Torch takes the headache out of goal-based tax planning.

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Tax Torch was built to tackle the most persistent problems head-on, starting with client goals, by providing a centralised platform that tracks your clients’ life, business, and financial goals in one easily accessible place. That way, you’re able to gather, organise, and incorporate client goals into tax planning from the get-go.

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Not only does this increase the visibility of your clients goals across the firm, it helps to ensure your team and other stakeholders are aligned while also providing a place where people can easily view and update those goals as needed

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Here’s how it works:

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1. Gathering Client Goals 

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Tax Torch’s built-in goals tracker makes capturing client goals easy, which means no more wasted time sifting through emails, searching for client records, or chasing other team members for information because everything you need is right at your fingertips.

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2. Integrating Goals into Tax Planning

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Now that you’ve gathered your client goals and organised them in Tax Torch, let’s look at how you can integrate them into your client’s tax planning strategy.

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For example, if your client is a sole-trader with 6 figure income and their goal is minimising taxes, you could discuss incorporating their business to manage when they receive their income personally to take advantage of lower rates.

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In another example, if the client has a limited company with the same goal of minimising taxes, you could look at a mix of salary and dividends to reduce Income Tax and National Insurance Contributions. You could also discuss timing the dividends across several years to avoid hitting a higher tax bracket if this aligns with the client’s goals.

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Start Delivering the Personalised Tax Planning Your Clients Deserve

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Delivering personalised tax planning is one of the best ways to keep clients happy while maintaining a great relationship. Every client, no matter how big or small, appreciates the personal touch and focus that comes from tailored tax advice.

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Not only will you enhance client trust, but you might even be able to assume a more proactive, advisory role as a strategic partner in your client’s financial success. 

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Discover how to deliver bespoke personal tax planning without the headaches. Join the waiting list today and see for yourself how Tax Torch’s proactive approach makes tax season easier for everyone.