How can a tax advisor show a client the value of tax planning without promising a result they cannot control?
That question came up in this older Financial Clarity conversation with Hannah Smolinski.
My answer was that CPAs should be able to quantify potential tax savings and provide a cost-benefit analysis.
If you're recommending a strategy, the client should have enough information to understand the potential financial impact and compare that opportunity with the cost of the work.
But that is different from guaranteeing the tax savings.
In my CPA firm, our engagement letters took another approach.
We could not guarantee the tax result, but we could guarantee client satisfaction.
If something unexpected happened and we were unable to fulfill the plan as expected, we would work with the client and figure out how to make the situation right.
For me, that is an important part of value pricing and tax advisory.
You can be specific about the potential value without making promises about an outcome you cannot control.
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Jackie Meyer, Dr Jackie Meyer, Financial Clarity podcast, Hannah Smolinski, tax planning, tax savings, tax strategy, tax advisory, tax advisor, CPA, accounting, accountant, value pricing, ROI Method, pricing strategy, client satisfaction, client service, CPA firm, accounting firm, tax professional, advisory services, cost benefit analysis, firm growth #short
