CPA²Connect

10/03/2018

CPAs and EAs: Get designated. Get licensed. Find a partner.

While CPA/EA firms can go it alone, a partnership, alliance, or in-house planner is the only way to get your tax clients the complete support system that they need. Some tax professionals are able to do both (tax and financial advice) and do it well, but the sheer amount of expertise, training, and continuing education forces most to end up focusing on one and letting the other slide into benign neglect.

The vast majority would benefit from partnering with qualified advisors who think, act, and care like they do. These professional, ethical, partner-level advisors are out there, and they will make your firm more complete, more client-centered, and more competitive.

Now is a critical time for CPAs to consider enhancing and diversifying their service offerings.

06/08/2016

Fee-for-Service Minute: Are Fees Deductible?

DID YOU KNOW?
A portion of the planning fee may be a deductible expense for your client.

The IRS treats a professional fee associated with tax advice and preparation as a deductible miscellaneous expense. Even though this is subject to the 2% of AGI limit for individuals, it can still have a material impact on a client's taxes and make the planning fee more palatable.

If the client owns a business, any portion of the planning engagement related to business issues is 100% deductible to the business. Only the fee related to an individual or family is subject to the 2% limit.

This is another reason that you need to have an open line of communication with your client's CPA. Your client may not know that she needs to inform her CPA that a planning fee was paid, and her CPA needs an explanation of the services rendered to determine the appropriate deduction.

Put it into Practice
On the Financial Planning Agreement (FPA) under SERVICES AND FEES, make sure that you use appropriate terms in the explanation section. Here are a few samples.

Consultations focusing on the area(s) of:
Income Tax Planning
Income Tax Management
Income Tax Review
Income Tax Analysis

Deductions are good. Contact me for no particular reason.

Darryn Pope, CFP®, CFS
Chief Training Officer
[email protected]

09/12/2013

The CPA should be the personal financial head coach. More great insight from Nap: Take Charge of the Team

You want to be the head coach of your clients advisors

09/12/2013

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05/17/2013

Decent article on the basics of working with CPAs, but you have to do more! Think different to be different.

Seattle: “I know there are some advisors who claim to get a lot of business from CPAs, but I don’t believe it -- I haven’t any luck,” whined Charlie during the lunch break of our Rainmaker Retreat, then finally asked the question that was on his mind, “Every advisor I know who has made attempts, ev...