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Is your tax practice future-ready? Lyle Benson, CPA/PFS, CFP® President, L.K. Benson & Company
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
Cha
nnel
s
CPA firms
RIA
Wirehouse
Independent B/D
Insurance
Banks
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
Future-proof your services to individuals5
Planning Services
Tax
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
Future-proof your services to individuals7
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
Future-proof your services to individuals8
TCJA – Best Tax and Planning Tips and ideas
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
Future-proof your services to individuals9
TCJA – Best Tax and Planning Tips and ideas
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,
and
estate planning
decisions
Future-proof your services to individuals10
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…
Future-proof your services to individuals11
Be intentional and keep it simple
Fear, apathy, and ignorance
are much more likely
to kill my dreams
than failure
ever will
Future-proof your services to individuals12
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
Future-proof your services to individuals13
PFP Section – resources that matter
Future-proof your services to individuals14
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
Tax
Estate
Education
Charitable
Retirement
Investments
Future-proof your services to individuals15
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.
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Thank you© 2018 Association of International Certified Professional Accountants. All rights reserved.
Thank you© 2018 Association of International Certified Professional Accountants. All rights reserved.
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