Attention CPAs: Retain Clients and Increase Revenue
Filed under: The Advisor's Blog
Aging Baby Boomers are driving a greater demand for financial planning services, as they seek out resources to help them plan for retirement and manage their tax burden. As this generation ages into retirement, the need to integrate retirement, tax, estate, and investment planning will only increase further.
On December 16, the Journal of Accountancy published an article highlighting the importance of offering a greater range of financial services to clients. A study by the AICPA, titled Economic Benefit of PFP Services*, sheds some light on the importance of partnering with a financial services provider to meet this growing consumer demand.
- 49 percent of responding CPAs said their firm partners with a financial services provider*
- 63 percent of those who had partnered with a financial services provider said it helped them to attract new clients*
- 65 percent said partnering with a financial services provider expanded their engagement with clients*
- 54 percent said their clients’ appreciation of their services increased after partnering with a financial services provider*
- 79 percent said partnering with a financial services provider increased their profits in the first year*
Changes in the market are driving changes in the ways CPAs conduct business. With the proliferation of easy tax software, firms need to consider new ways of generating revenue. Partnering with a financial services provider increases a CPA’s overall offering to clients, allowing them to become an important part of clients’ financial lives. Clients feel increased loyalty to, and a deepening engagement with, the CPA. Clients who develop this personal relationship with their CPA are more likely to stick around for the long haul.
CPAs who want to partner with a financial services provider should conduct research and choose a business model that works for both them and their clients. The AICPA offers resources to help firms learn how to develop PFP services via their website, and has organized the upcoming Implementing Personal Financial Planning Services seminar to be held January 17-18 in Las Vegas**.
* http://www.journalofaccountancy.com/news/2014/dec/cpa-financial-planning-services-201411511.html
