The return is the entry point, not the entire relationship. Here’s how to extend your client engagements beyond April.
The Delivery Conversation
The moment with the most advisory potential is the return delivery appointment. You’ve just prepared the return. You know the client’s income, deductions, credits, and tax liability inside and out. Before you collect payment and say goodbye, spend five minutes sharing what you noticed.
“Your self-employment income is high enough that an S-Corp election could save you $8,000 to $12,000 in payroll taxes next year. That’s a conversation worth having before year-end.”
“You got hit with an underpayment penalty this year. I can calculate your estimated payments for next year so that doesn’t happen again.”
“Your retirement contributions were well below the limit. Increasing them would reduce your taxable income and your tax bill.”
Each of these observations opens the door to a paid advisory engagement.
Pricing Advisory Work
Don’t give advisory work away. A tax planning session is a separate service with separate value. Quote a fee before doing the work. Mid-year projections for business owners: $500 to $1,500. Year-end strategy sessions: $300 to $750. Estimated tax calculations: $100 to $200 per quarter.
Use flat fees rather than hourly billing. A flat fee of $500 for a planning session is easier for the client to evaluate than an open-ended hourly rate.
The Client Lifecycle
January through April: Prepare the return. Identify planning opportunities during delivery.
May through June: Follow up with business clients about bookkeeping. Complete extension returns.
July through September: Conduct mid-year tax projections for your top clients.
October through December: Year-end planning sessions. Reach out to clients about last-minute strategies (charitable contributions, asset purchases, Roth conversions, retirement contributions).
Throughout the year: Quarterly estimated tax reminders. IRS notice responses. Referrals to attorneys and other professionals when situations exceed your scope.
The Revenue Impact
If 30% of a 200-client practice engages you for one advisory service at an average fee of $350, that’s $21,000 in annual revenue outside of tax season. At 50% engagement and $500 average, that’s $50,000. This revenue smooths your income, deepens client relationships, and makes your practice far more valuable.
For training on building advisory services into your practice, visit musespring.com.