Is your tax practice future-ready? · 2020-03-31 · Is your tax practice future-ready? ......

transcript

Is your tax practice future-ready?Lyle Benson, CPA/PFS, CFP®

President, L.K. Benson & Company

EnvironmentPlanning services for individuals are part of CPA core services

Demand is growing and needs are changing

• Demographic shifts – Baby Boomers, Millennials

• Consumer expectations

• Technology

Many CPAs: “This won’t impact me”

Other providers offering tax planning & compliance services

Tax reform provides a great opportunity for CPAs to show value of planning-centric approach

Financial planning, as defined by the consumer:• Tax planning• Estate/gift

planning• Retirement

planning• Risk

management planning

• Investment planning

Future-proof your services to individuals2

CPAs are trusted advisers

We must maintain this relationship

Business owner

planning

Tax planning

Cash flowplanning

Estate planning

Retirement planning

Investment planning

Insurance planning

CPA firms

Wirehouse

Independent B/D

Insurance

Law firms

Planning services footprint

Service base –over 90% of practices offer this service

Established trend –Over 75% of practices offer this service

Developing trend –growing number of practices offering this service

Planning services footprint

Legend:

Internal analysis based on Ceruli’s U.S. Advisor

Metrics 2016 report, internal data and other sourcesFuture-proof your services to individuals4

Terminology

Planning Services

Estate

Education

Charitable

Retirement

Investments

Client perspective

Profession perspective

Decisions and Actions

Recognition of trends must translate into action

Tax reform is a great opportunity

Generally effective after 12/31/17

Guidance continues to come out

Most changes are temporary

Sunset after 2025

Use these conversations with clients to let them know you can do more

TCJA – Best Tax and Planning Tips and ideas

Multi-year tax planning and bracket management

• Critical period between:

early retirement and age 70 1/2

• Roth conversions

• Capital gain harvesting

It’s no longer

just about

reducing your

clients’ tax

liabilities; it’s

about helping

them meet their

overall goals for

retirement

Influences client retirement planning

Impact of higher standard deduction and SALT limitation

• Understand your clients goals in the face of fewer deductions

• Bunching of deductions

• Use of donor advised funds for charitable contributions

• Debt restructuring

The context of

the client’s

overall financial

situation and

goals cannot be

ignored

Influences client charitable and investment planning

Estate planning in the new environment

• Under $5.5MM: state estate taxes and non-tax estate planning

• $5.5-11.2MM: flexibility for potential future tax changes

• Over $11.2MM: HNW planning continues

Heavier focus on non-tax goals for client and their family

• How much for heirs, charity, government?

• Who in critical roles – trustees, personal representative?

• What role does life insurance play?

Influences

charitable,

insurance,

estate planning

decisions

Key decisions for success in a changing world

Evaluate your client service model – general vs niche

Emphasize activities that build on your CPA strengths

Design your business to reach your target market

Deepen client relationships with proactive discussions

Adopt technology – process efficiency & client necessity

Speak your clients’ language on your services offered

Hold a financial planning credential

CPAs must evolve how they provide services to individuals

The next generation of CPAs and the value of your firm depends

on it…

Be intentional and keep it simple

Fear, apathy, and ignorance

are much more likely

to kill my dreams

than failure

ever will

Three key questions:

1. “Start with Why” – Simon Sinek

2. What to learn?

3. How do I transform?

Both these trends and your decisions will impact your comfort zone

• how is up to you

Comfort zone

Learning zone

Danger zone

Planning & Tax Advisory Services

Webpage: integrates PFP and Tax content - important messaging and key resources to members in one place

Why offer these

services?

What do I need to learn?

How do I transform my

business?

aicpa.org/growadvisoryservices

PFP Section – resources that matter

aicpa.org/pfp

Personal Financial Specialist Credential (CPA/PFS)

Sets CPAs apart from other financial professionals;

showcases their expertise in how tax

and each area of planning impacts their

clients’ personal finance goals and

decisions

CPA exclusive

Core knowledge

Client visibility

Planning Services

Estate

Education

Charitable

Retirement

Investments

Workshop: Building a Tax & Financial Planning Advisory BusinessJune 8-9 at AICPA ENGAGE

• Learn from CPAs who have built practices that provide the highest client value

• Learn tips to effectively communicate with clients use case study examples

• Hear from compliance, technology and practice management experts

• Gain expert guidance you need to be successful in providing PFP services

Visit www.aicpaengage.com to learn more and register.

What’s your next step?

Is your tax practice future-ready? · 2020-03-31 · Is your tax practice future-ready? ......

Documents