MoneyThumb has many customers in the accounting niche who use our PDF financial file converters. From those who simply complete income tax returns for clients to full-blown CPAs, our users in the accounting niche are widely varied.
This post from The Rules of Thumb blog is for those of you who are in the accounting niche and would like to expand your business from just preparing income tax returns for clients to becoming a tax advisor.
First, let's clear up any confusion about the difference between a tax preparer and a tax advisor. Below is a definite list of the differences:
- Expertise: A tax advisor has different qualifications and levels of expertise than an income tax preparer. Both are qualified to assist individuals with preparing and filing their income tax returns. However, tax advisors are qualified to provide more long-term, in-depth assistance to individuals and businesses.
- Complexity: Because a tax advisor provides a deeper level of consultation, tax advisors are involved with more complex returns. They know the tax laws inside and out to help you navigate the law and use it to your benefit.
- Tax strategies: A tax advisor not only prepares your tax returns but also takes time to meet with you, review your personal tax situations, and educates you on strategies to reduce your taxes now and in the future. A tax advisor is prepared to help you make decisions. From business tax, strategies to estate tax planning to individual returns, highly knowledgeable advisors help you make choices that limit your tax implications. On the other hand, tax preparers provide short-term support – meaning, they only provide guidance on reducing your taxes or increasing your refund.
- Efficiency: While tax preparers are typically quick to complete your returns, tax advisors are efficient. An advisor usually has a comprehensive view of your tax and income situation allowing for efficiency.
- Communication: Generally, preparers are available from January through April, while advisors are go-to tax experts year-round. Tax advisors keep open communication with clients and accommodate ongoing meetings, calls, and emails throughout the year.
If you are considering expanding your accounting business from tax preparer to tax advisor, we'd like to share with you this free guide from Accounting Web titled Four Steps to a Tax Advisory Business Model. Below is a detailed description of what this free guide covers:
Tax compliance to advisor: How to transform your firm
Focussing on tax compliance can be a great strategy, but if your clients are looking for a more proactive service then you could be leaving revenue and valuable client relationships on the table.
But when introducing tax advisory services, it's important to get the business model right. Packaging the service in the right way, pricing, and presentation are all key elements.
This guide by Will Hill (Product Manager, Advisory in the Tax Professionals segment for Thomson Reuters) examines:
- Initiation and onboarding your client to tax advisory services
- Workstreams that optimize efficiencies and accuracy
- Monetization of tax advisory services
- Real-world examples
Fill out the form on this page for an instant download. You'll also receive a convenient link back to the document by email so you can download the file to your other devices.
Also, we'd like to suggest that you take a free test drive of MoneyThumb's PDF financial file converters as you transition from tax preparer to tax advisor if you are not already using our products. You may be surprised at all the benefits you will gain by using our PDF financial file converters. Below is a list of some key product features:
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