Steps to Identify Unpaid Services and Administer New Advisory Fees
Step 1: Inventory of Services
- List Current Services: Document all the services you currently provide, including those you might consider routine.
- Example: Preparing tax returns, filing documents, etc.
- Tailoring returns to minimize tax liability, strategic planning for the next tax year, and advising on business decisions for tax benefits.
Step 2: Assess Client Awareness
- Survey Clients: Conduct a survey or have informal conversations to gauge client awareness of the advisory services you provide.
Questions to ask: “Are you aware of the tax strategies we implemented to save you money?” “Do you know how much you saved due to my tax advice?”
Step 3: Quantify the Value of Advisory Services
- Document Feedback: Record responses to understand the gap in client awareness.
- Calculate Savings: For each client, quantify the monetary savings resulting from your advisory services.
Use tax returns and compare the actual tax paid with what could have been paid/refunded without your advice.
- Record Savings: Create a report or spreadsheet detailing these savings per client.
Step 4: Develop Advisory Service Packages
- Create Service Tiers: Develop different packages for advisory services.
- Example Tiers: Basic Advisory, Advanced Strategic Planning, Comprehensive Business Advisory.
- Set Pricing: Determine the cost of each package based on the value provided and market rates.
Step 5: Communicate Value to Clients
- Prepare Documentation: Create documentation that clearly outlines the advisory services provided, the savings achieved, and the cost of these services.
- Use before-and-after scenarios to show the impact of your advice.
- Client Meetings: Schedule meetings with your clients to discuss the benefits and introduce the new advisory service packages.
- Use the documented savings to highlight the value of these services.
Step 6: Implement and Administer New Fees
- Revise Engagement Letters: Update your client engagement letters to include the new advisory services and fees.
- Billing System Update: Modify your billing system to incorporate the new advisory service packages and automate the invoicing process.
- Training for Staff: Ensure that all team members are trained on the new services, how to explain them to clients, and the updated billing procedures.
Step 7: Monitor and Review
- Client Feedback: Continuously gather feedback from clients about the new advisory services.
- Adjust Packages as Needed: Refine and adjust the service packages and pricing based on client feedback and market conditions.
Example Workflow Implementation
Inventory of Services
- Current Services: Tax preparation, e-filing, audit support.
- Advisory Services: Tax minimization strategies, business tax planning, deduction qualification advice.
Client Awareness and Value Documentation
- Survey: Conducted via email and during client meetings.
- Savings Calculation: Used last year’s returns to show saved amounts versus amount saved through advisory services.
Service Packages
- Basic Advisory: $300/year – Includes tax minimization and basic planning. Offer to small businesses
- Advanced Strategic Planning: $600/year – Includes all basic services plus quarterly planning sessions.
- Comprehensive Business Advisory: $1,200/year – Includes all advanced services plus monthly business advisory sessions. Offer to corporate customers
Communication and Implementation
- Client Meetings: Discussed savings and new packages with top 20 clients.
- Updated Engagement Letters: Sent with the new service agreements and pricing.
By following these steps, you can effectively identify unpaid advisory services, communicate the value to your clients, and implement a structured and profitable advisory service offering.
