If your firm focuses on compliance, you could be missing out because tax planning as a service is brimming with untapped potential. Many firms don’t see it because they think planning can’t scale, or that it’s too complex, or it takes too long.
That might have been true five years ago. Now, we have tools that will help you tap into tax planning’s potential and turn it into a scalable new service that grows your firm and your client relationships, too.
Done right, tax planning is so much more than an add-on. To truly maximise client value, it’s a must-have that will have clients sticking around longer and saving more money — and that’s a win-win for everyone.
How tax planning creates new revenue opportunities for your firm
Don’t underestimate the revenue potential of adding tax planning as a service line. It’s a great way to generate recurring fees and it can be a reliable source of cash flow during the slower months.
With proactive tax planning services, you can offer a monthly subscription that balances the feast-or-famine of compliance, where income peaks during tax season.
And that monthly subscription also means you’re checking in with clients more often, which helps build rapport and a sense that you’re working towards a shared goal.
Additionally, it gives clients a chance to let you in on what’s going on in their lives, allowing you to advise them through the tax implications of major milestones and life events as they happen. And once you have a relationship like that, you’ll never want to go back to when clients just emailed their info at the end of the year and expected you to handle their compliance and tax planning at the same time.
Back in the day, when everything had to be done manually, it made sense for firms to focus on one or the other. But those days are long gone.
Now, you can have it both ways.
£ and time-saving benefits for firms and clients
Instead of waiting for that once-a-year call that comes every tax season, firms should be proactive about scheduling regular check-ins with clients. We recommend having quarterly check-ins with clients but you can always adjust the schedule to their needs.
Communication is everything in tax planning and these check-ins are a chance to get to know your clients better. And the better you know them, the more personalised your advice and the more money your clients save.
So don’t be afraid to ask clients about their financial goals and where they see themselves in five years because, as their accountant, you can help them get there.
It’s also an opportunity to catch up on milestones and major events in your client’s life like buying a house, starting a family, or retirement planning — all of which have tax implications you can help them plan for, too.
Retain clients by meeting their growing needs
Offering personalised tax planning is a chance to go far beyond the limited scope of compliance and really get to know your clients instead. Done right, it will make clients stick around for the long run.
As clients grow, using the right tools can help you scale with them, which ensures your firm keeps up. However, the best ways to keep clients happy are to keep saving them money and keep helping them reach their financial goals.
A proactive approach is essential to retaining clients, too. They want a tax firm with a plan, so when they achieve their goals, show them how you’re already planning for the next ones.
Tips on pricing tax planning services
Pricing is one of the most common challenges for any new service, tax planning included, so let’s take a look at 3 proven pricing strategies:
1. Value-based pricing
The value-based pricing model charges clients based on the savings or opportunities (i.e. the value) you brought to the client.
For example, let’s say you helped a client save thousands of pounds on their inheritance tax. That’s worthy of a premium fee, and there are several ways you could calculate it, such as a flat service fee or a percentage of what you saved them.
2. Fixed fee pricing
Clients appreciate fixed fee pricing because it’s transparent, upfront, and predictable. Ideally, you would charge a set monthly fee per client based on the level of service provided and monthly fees are great for firms because it provides a reliable source of income throughout the year.
3. Bundled pricing
Bundled pricing is where things get interesting as you can create broad advisory packages and then categorise them into different pricing tiers to make it easier to upsell clients.
Let clients compare the bundles side-by-side and position each one as an integral part of your value proposition to clients, and let them choose the one that best suits their needs.
If you want to provide clients with more customisation options, consider offering a variety of bundles such as tax planning, business advisory, and financial forecasting, and then letting them pick the bundles they want.
The tools make the difference
Let’s explore how using a tool like Tax Torch helps firms effortlessly scale their tax planning services to keep clients happy.
Goal tracking and scoring, all in one place
Tax Torch’s Centralised Goals feature makes gathering and tracking client goals easy. With your client’s personal, business, and financial goals all in one convenient place, firms can track goals, stay organised, and deliver the personalised advice clients need to reach those goals.
Centralised Goals is one of Tax Torch’s many features that helps firms upsell tax planning as a distinct service with bespoke advice that saves client money.
Engage and wow clients with visual reporting
When reporting to clients, it’s not enough to just show them the data. To truly engage them, firms have to build a narrative and bring the data to life.
Tax Torch’s Visual Reporting does just that, giving firms the ability to quickly create visually appealing, client-friendly reports that clearly outline everything from performance results to new tax-saving opportunities.
The numbers don’t lie, and the Visual Reporting will makes it easier to show ROI and justify why tax planning is worth it.
Show the untapped potential with scenario planning
The proactive approach of tax planning sometimes makes it hard to show clients its benefits since the steps you take now won’t pay off until later.
Tax Torch, with its built-in Scenario Planning tool, makes it easy to model different tax planning strategies to give clients a better idea of its untapped potential, which helps firms justify higher fees as well.
Using Tax Torch’s Salary vs. Dividend Calculator, firms are able to show and compare the tax implications of different income structures (such as taking a salary vs. taking dividends vs. a combo of both), which can help clients optimise their tax position. It also removes the guesswork by using real data, which builds client confidence in your tax planning strategies.
The Scenario Planning and Salary vs. Dividend features, in addition to the Centralised Goals and Visual Reporting that TaxTorch offers, can help your firm offer broader advisory packages that further enhance the value proposition of your firm.
Scale your tax planning services with Tax Torch
Tax planning is no longer an optional add-on. These days, it’s essential for any firm looking to stay ahead and stand out in an increasingly competitive market.
Tax Torch can help! With out-of-box features like Centralised Goals, Scenario Planning, Visual Reporting, and Salary vs. Dividend Calculator, Tax Torch can transform and scale how your firm gives personalised, tax planning advice.
See for yourself. Join the waitlist and make tax planning easier with Tax Torch.
You also might like
Proactive Tax Planning: When Basic Tax Services Aren’t Enough
Learn how advanced personal tax planning goes beyond SA returns to deliver real value. Identify the right clients, align with their goals, and build a scalable, profitable service.
.png)
An Accountant’s Guide to Year-round Personal Tax Planning
Discover a proactive tax planning workflow for accountants. Learn when to schedule key conversations with clients throughout the year.
