Creating New Revenue Streams Through Tax Planning
The overarching problem business owners experience with their accountants is that they lack the services needed to answer their basic operational questions and run their businesses effectively. Let’s say you own a business in 2019 and it is going well. If I were to ask you right now, “Mr. or Mrs. Business Owner, do you have a good guess on how much money in taxes your business is going to personally cost you at tax time?” Would you be able to answer it? If you cannot answer the question with confidence at any point during 2019, there is a problem. Here is why: clients deserve the information needed to make intelligent financial decisions. Furthermore, we can identify a need for services that stem into a broad variety and combination of accounting, payroll, and tax. The good news is that it is not too late to fix this problem. But, it does require you to understand, believe and implement a specific tangible idea.
If you want to expand your tax practice into all of the ancillary accounting services, then selling the idea is the door to success. During our initial sales-consultation calls, the overwhelming majority of that time is about discussing the idea. Helping them understand what being a great business owner looks like in regards to business, accounting, and taxes. What is the big idea that our clients buy? That a great business entrepreneur should be getting the most out of their business venture fueled by information.
What is the best way to see the real effect of that idea? By seeing your clients’ business dreams live day-after-day through growth and financial return from that dream. If you utilize every business and accounting tool you need to make the dream work, you will streamline your service offerings and add to the success required to keep your clients’ idea alive and healthy.
Now that you know the big idea and believe in it, let’s turn to the tools you need to make it happen. As an example, our firm AdvisorFi supports the idea that we sell with modern cloud-based accounting technology. The main reason is that it’s convenient and reliable for both us and our clients, and it puts power back into the hands of the business owner. In addition, by using and implementing cloud-based accounting platforms you can achieve the results you need faster to prove that your idea does work. A strong, reliable financial statement is at the heart of a successful business. We achieve this goal by having Xero accounting as our business accounting foundation. Then we surround Xero with all the complimentary accounting applications we need to keep the financial statements reliable at all times. Using apps that connect together digitally solves an industry issue of seamlessness. Historically, accounting data from different areas of business did not communicate back to the core accounting system, however, we can accomplish this through cloud-based platforms.
For example, we surround Xero with three main applications; Gusto, Hubdoc, and TaxPlannerPro. Gusto, a payroll, HR and benefits application that solves for compensation compliance for business owners and Form W2 predictions for us. Hubdoc, a financial document fetching tool that supports the real-time bookkeeping we offer so we can provide real-time net income predictions. TaxPlannerPro is a small business tax planning software that simplifies complicated IRS codes and difficult projection models. If we were to put a visual to the idea we sell, it would look something like this:
Please realize that implementing these applications is crucial to the success of getting the most information out of your clients’ business. They all seamlessly integrate with each other in a reliable accounting-wise way. The combination of these apps streamlines the mundane accounting and bookkeeping processes that keep business owners away from ever making great real-time decisions; decisions business owners desperately want to make but struggle to support. The sense of being directionless was a very real struggle for many business owners until these apps came around. The service offerings you provide to maintain a beneficial app-stack serve to set the stage for real conversations with your clients about the idea. Utilizing a cloud-based application stack is the foundation needed to become the trusted advisor that your clients are craving.
It is as simple as that! Understand and believe the idea you are selling. Create a business offering that packages the idea along with other resources needed to support the concept. Select specific cloud-based technology resources that streamline the basics you need to get the job done. And finally, prove your idea out every time through tax planning. If you can accomplish that step-by-step process, you can build an amazingly diverse accounting practice and your clients will love every minute of it. Which is not a bad...idea.
About Will Lopez:
Will Lopez, CEO, and Founder of AdvisorFi.com, is an innovator and pioneer in the movement of online accounting. He has developed cloud-based technology that integrates into some of the leading cloud-based accounting tech. He has an online accounting firm with clients in over 32 states and 4 different counties providing live, in-house accounting support and services using the greatest tech known to business. Overall, his purpose is to empower the next generation of business entrepreneurs challenging the current status-quo from decades of bad accounting inefficiencies.
Will Lopez is Founder of AdvisorFi.com, a next-generation accounting firm. We pioneer the online accounting frontier to provide services that help unify the entrepreneurial endeavor and empower that endeavor to be universally accessible and useful. We also release entertaining YouTube videos on a regular basis to provide business owners an opportunity to learn tough ideas in a fun way.
Xero is the global business platform that helps accountants run their practice and better serve clients. With a dedicated, solutions-focused support team and powerful tools like Xero HQ and Xero Practice Manager, customers can enjoy simplified bank reconciliations, invoicing, expenses, inventory and more. It’s also easy to customize the Xero experience with over 700 apps. Thanks to these time-saving features, accountants can now focus on more advisory services.