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Value Accounting (And Why It's Important)

May 6, 2022 TaxPlanIQ Support team

As an accountant, you are in a unique position to help your clients maximize their opportunities for tax savings. By understanding the various tax credits and programs available, you can help your clients take advantage of them and reduce their overall tax liability.

However, in order to truly show your value to your clients, you need to go beyond simply crunching numbers and providing them with tax advice. You need to be able to show them how you can help them save money on their taxes, improve their financial situation and deliver significant ROI through your tax accounting

Five Tips for Showing Clients Value

1.   Help them understand the tax code

The tax code is complex, and your clients may not be familiar with all the credits and deductions available. By helping them understand the tax code, you can help them take advantage of the opportunities available.

2.   Educate them on the importance of tax planning

Many taxpayers fail to realize the importance of tax planning. By educating your clients on the benefits of planning their taxes ahead of time, you can help them save money and improve their financial situation. Show them how they’ll build wealth or have more fluid assets to really position themselves toward their goals.

3.   Recommend tax planning software to simplify the process

By recommending a quality tax planning software solution to your clients, you can make it easier for them to properly plan their taxes, which will result in significant savings over time.

4.   Stay up to date on the latest tax laws and changes

The tax code is constantly changing, and it is important to stay up to date on the latest changes. By keeping abreast of the latest tax accounting changes, you can ensure that your clients are taking advantage of all of the opportunities available to them.

5.   Show them the value of working with a tax professional

Many people believe that they can save money on their taxes by doing it themselves. However, this is often not the case. By showing your clients the value of working with a tax professional, you can help them save money and avoid costly mistakes.

Building A Competitive Advantage With Value Accounting 

Repeatedly, clients come to accountants to look for ways to lower their taxes legally. Furthermore, clients are always looking for creative approaches to financial decision-making in order to increase cash flow or reduce costs.

As an accountant, you have the unique opportunity to provide value to clients by taking on the role of a Value Accountant. 

What does this mean? Well, a value accountant is someone who:

  • Understands the big picture when it comes to a client's financial situation 
  • Proposes creative tax accounting solutions that are outside-the-box 
  • Pushes the envelope but still abides by ethical boundaries 
  • Educates clients on how to make smart business decisions 
  • Saves clients time, money, and aggravation. 
  • Creates a visual representation of the ROI a client will receive from your unique tax accounting approach

As a value accountant, you have the power to build a competitive advantage and truly differentiate yourself from other accountants. By leveraging your knowledge of the tax code, being proactive by suggesting tax planning strategies, and adopting cutting-edge technology tools, you can provide true value to clients. 

You must provide clients with a systemized, proactive, and scientific approach to financial decision-making in order to create economic value. In order to make smart decisions, you need to understand what the client's goals are and then weigh the pros and cons of each decision. This process can be simplified by using technology tools that help you quickly identify the best course of action. 

When you take on the role of a value accountant, you are essentially becoming a one-stop shop for all things financial. Your clients will look to you for advice on areas such as tax planning, cash flow management, budgeting, and even retirement planning.

By providing this high level of value to clients, you can build a competitive advantage in your market, truly stand out from your competition, and become indispensable to your clients. 

Using Technology To Provide Value 

Technology is a critical facet for value pricing in your firm. Technology tools can help you quickly identify opportunities to save your clients money, automate tedious tasks, and improve communication. 

Some of the key technology tools that value accountants should be using include:

  • Tax planning software, which can help you analyze various tax scenarios and give clients guidance on how to save money through appropriate deductions and credits. 
  • Budgeting or financial planning tools, which can help you provide comprehensive financial advice and make it easier for clients to stay on track with their financial goals. 
  • Document management software, which can help you securely store and share client documents, as well as automate tedious tasks such as data entry. 
  • Client portals, which can improve communication and collaboration by giving clients 24/7 access to their account information and providing a secure way to manage tasks online. 

The Bottom Line? 

As a value accountant, you understand that your clients rely on you to help them make smart financial decisions and maximize their tax savings. 

By leveraging the power of technology tools, like TaxPlanIQ, you can provide true value and build a competitive advantage in your market. Ready to see what tax strategies you can use? If so, sign up for a free trial of TaxPlanIQ right here.

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