As tax professionals, we work with clients from all walks of life, each with unique financial circumstances. Yet nearly all share a common concern: “Do I have enough for retirement, and am I maximizing my tax savings?” It’s a great question, and one they often bring to either their financial advisor or their tax preparer.
While financial advisors may provide insight into investment growth or retirement projections, they often lack the tax expertise needed to optimize savings between now and retirement, or what we refer to as the client’s exit date. This is where tax professionals can step in and add significant value.
We don’t need to replace the financial advisor. But we are in a prime position to guide clients through core tax planning strategies that can have a substantial impact on their financial future. Even the most informed clients often need coaching when it comes to deciding between a traditional IRA and a Roth, understanding 401(k) contribution options, utilizing backdoor Roth conversions, leveraging 529 plans for both children and adults, or contributing to HSAs. Each of these tools, when used strategically, can yield $50,000 to $200,000 in tax savings over time – especially for clients age 50 and up.
There are tools, however, to help visualize and explain these strategies more clearly. When exploring platforms, it’s helpful to look for one that allows professionals to model basic tax planning scenarios and present them in a client-friendly way. Easy-to-read graphs and walkthroughs help clients understand the “why” and “how” of their plan, not just the numbers.
As clients increasingly look to their tax professionals for guidance that extends beyond tax return preparation, offering tax planning isn’t just a value-add, it’s essential. Without it, clients may default to self-preparation or miss opportunities for long-term savings.
Adding planning conversations to your tax services doesn’t require deep financial forecasting, just a willingness to walk clients through the basics and introduce tools that support smarter financial decisions.
About Troy C. Patton, CPA/ABVTroy Patton, CPA, ABV, started a CPA firm and grew it to 10 offices and 72 employees. He then sold it in 2004. Since then, Patton has been a national resource for CPAs and tax preparers, helping them build their practices. Patton created a practitioner-focused company that helps professionals elevate their client’s experiences and enhance their profits. PattonValuations.com and Archer Investments have helped thousands of practitioners offer outsourced valuation services and investment advisory services. Patton Archer has just released its first version of Finance Geeks to bring additional value to practices and the clients they serve with real-world tax planning.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.