Technology has transformed the way advisors do business. Whether it’s by creating competition or increasing efficiency at your firm, every firm has felt the impact—both positively and negatively—of new tech.
We believe that technology can serve advisors well, even in unexpected ways. The impact of adding a new tool to your tech stack always extends beyond just increased efficiency or additional services—and that’s true for tax planning software too.
Today, we want to share six ways tax planning software can help you grow your firm.
1. Attract more clients
While tax planning may not be the first topic that clients raise in discussions when looking for a financial planner, it’s still something that’s very much on their minds. By offering tax planning, you can create a new entry point that appeals to another pain point your clients experience beyond the typical core financial planning package.
A combined advising and tax planning service is a valuable convenience for your customers and prospects that shows you understand and care about their needs.
2. Identify additional planning opportunities
Integrating tax planning software into your firm doesn’t just appeal to prospects, it can also help you discover new ways to serve your existing clients.
Tax planning services allow you to identify additional planning opportunities and capture greater wallet share with your clients.
For example, a 1040 form can give you the information you need to calculate a client’s net worth, discover any IRA penalties, and recognize how additional tax paid can impact financial planning needs.
When clients with held-away assets see the tax benefit of having you manage their money, you are giving them yet another reason to entrust the rest of their assets to your firm.
3. Increase efficiency
We know that financial planners are always looking for efficiency, and their clients are looking for more value. Tax planning software allows you to do both things at once by providing an additional service to clients that adds hardly any workload to your team.
Tax planning could offer the best of both worlds for your firm, allowing your team to focus on growth-related activities, such as:
- Sales calls
- Business development
- Investment management
- Direct client activities
Advisors are busy enough as it is, with the average advisor already spending nine hours a week getting new clients. So a value add that doesn’t add time to their workday? It’s a win-win.
4. Promote lead-gen
Want an easy lead-gen source that gets more prospects through your door? Offer tax consultations.
The right tax planning software can make this a slam dunk for you and your team, giving potential clients a taste of your services without the heavy lifting. A no-hassle approach to your lead-gen can allow your team to operate more efficiently while turning more leads into loyal clients.
5. Scale efficiently
Usually, adding more services to your advisory firm means recruiting and training more employees, using up additional resources you might not have.
Adding tax planning software to your tech stack is like hiring a tax planning professional without investing the time and money that come with growing your team. Rather than investing your resources in tax training, professional development, and hiring, you can scale your business efficiently, integrating with your current services and team members without the extra leg work.
6. Stand out from other advisors
Financial advisors that offer tax planning services:
- Deliver smart, long-term strategies for their clients that go beyond tax season
- Make tax-conscious decisions involving tax-loss harvesting, asset location, and tax-efficient withdrawal strategies
- Save clients money through a proactive approach
Teaming up with a tax planning software can give advisors a way to distinguish themselves from their competitors by offering this unique service.
If you’re ready to get started or want more information on how Holistiplan can help your firm grow, schedule a demo.