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21 Reasons to Tax Plan with 2021 Tax Planning Software

Every year is a good year to begin tax planning, but 2021 is a great time to start for several reasons. In fact, we counted 21 reasons to start tax planning in 2021. Make this the year you transition your tax and accounting firm with the help of Corvee Tax Planning software!

Reason # 21: Advisory > Compliance

There’s a movement in the industry from being a reactive, data entry preparer to a highly paid, forward-looking advisor. Corvee Tax Planning software puts you at the forefront of this movement, saving clients tens to hundreds of thousands of dollars in taxes every single year.

Reason # 20: Smart Questionnaires During Tax Season

Corvee Tax Planning analyzes your clients’ tax returns and questionnaire data, and automatically recommends proactive strategies including calculations, descriptions and code references. Practically speaking, what this means is our tax planning software uses smart questionnaires for the individual and each entity. These questionnaires help you get every single data point you need from clients to not only do a tax return, but to determine prior year estimated overpayment, current year and future year savings. These questionnaires use conditional formatting so your clients are answering the fewest number of questions for the maximum savings!

Reason # 19: New Tax Policies

With a new presidential administration in office this year, it’s likely that huge tax policy changes are on the horizon. Tax planning software allows you to compare strategies using current tax law versus new tax legislation proposals to help give you all the information you need in order to build the best 2021 tax plans possible for your clients.

Reason # 18: Each Strategy Has Supporting Documentation

For each tax saving strategy we use to help save your clients money on taxes, you can share supporting documentation which covers the strategy description, calculation, savings ranges, applicable years, tax code references and court case support. This way you’ll always be ready to answer questions your clients have about a particular tax saving strategy in their tax plan.

Reason # 17: See How Each Strategy is Calculated

Corvee Tax Planning software allows you to see exactly how each tax planning strategy is calculated. You can see exactly where the value is by looking at multi-year, multi-entity, deductions, phaseouts, credits, individuals, sole proprietorships (Sched C), partnerships, corporations, marginal and effective tax rates and more. Everything is transparent and can be fact-checked.

Reason # 16: Easily Create Proposals

Before someone decides to work with you on a tax plan, you can enter some basic information into our tax planning software and create a tax plan proposal, which includes how much they overpaid in taxes the previous year, how much you can save them in the current year and every year going forward.

Reason # 15: Ready-to-Send Finalized Tax Plans

Our tax planning software compiles your customized tax planning strategy and recommendations into a ready-to-send PDF file that contains a cover page, a table of contents, a customizable strategy letter, all of your clients’ estimated savings, a detailed list of each strategy with supporting documentation and an estimated savings per strategy. Basically, it’s a done-for-you deliverable!

Reason # 14: Quick Payments

Thanks to our client payments system, when you send a tax planning proposal to a client, they will be able to submit payment in advance via our client portal before you start creating their tax plan.

Reason # 13: Get Staff Involved 

In the past, tax planning was something only the owner and maybe a highly-compensated tax expert could do. Not anymore. Corvee Tax Planning software makes scanning returns, gathering questionnaires and determining saving strategies so easy, even seniors, staff and admins can play a role. This makes tax planning something that everyone in your tax firm can deliver.

Reason # 12: Upsell Existing Clients

Presenting an existing client with a new opportunity is a great way to grow your firm’s revenue. What better way to upsell your current tax preparation, monthly accounting or CFO clients than with a tax plan? The value you’ll provide with this new service will “wow” them!

Reason # 11: Repackage Services for Higher Net Profit

Repackaging your existing offers and including tax planning can significantly raise your profits. Whether it’s combining tax preparation with tax planning or quarterlies, or combining monthly accounting or CFO with tax planning, you could see a large increase in revenue with higher-priced offerings.

Reason # 10: Save Time with Fewer Clients

Although having 500 clients and doing $300 stand-alone 1040s keeps you busy, it’s much more profitable to do $15,000 tax planning with implementation, prep and quarterlies combined. In fact, that’s 50X more profit per client. Once you start tax planning, you can have fewer clients and still see an increase in your bottom line.

Reason # 9: Tax Planning Makes Your Firm Future-Oriented

Instead of being process-focused, low-priced and past-oriented, tax planning moves you to the mindset of being outcome-focused and future-oriented. The old way of firms doing compliance is giving way to the new way of return on investment (ROI). Tax planning software can make this transition in your firm real, starting this year.

Reason # 8: Save More Than Manual Tax Planners

Even veteran tax planners have found that tax planning software can find more tax savings for their clients than what they previously believed. This is because it’s difficult for the human mind to keep track of multiple strategies, entities and years. Tax planning software can calculate over 60 strategies automatically with a click of a button. If you think you can save a client X amount, put the data into the software and you could see a higher number.

Reason # 7: Get Organized

Collect all client information in one place so you can see the status of your requests. How many times have you struggled with sending and receiving documents back and forth with clients? With Corvee, everything is in one place so you don’t have to hunt down emails, Google Docs or paper trails. This is client collaboration as it’s meant to be.

Reason # 6: Automation

Automate 80% of the collection process and deliverable creation with software. Just as the calculator revolutionized, well, calculating…so has tax planning software revolutionized tax planning. It’s no longer a tedious, manual process. No more Excel sheets or PowerPoints! You can simply focus on the questions and inputs, and let the savings calculate for you!

Reason # 5: Add Your Own Expertise

Of course, every now and then you may want to customize something. That’s why we made it possible for you to add your own strategies and override calculations when needed. This isn’t a rigid process, unable to divert from the automated plan, rather you can add new custom strategies and combinations yourself.

Reason # 4: Optimize Efficiency withScanning Technology

You can scan dozens or hundreds of tax returns in a matter of minutes to see estimates of how much you can help save your clients. In addition to tax returns, our tax planning software helps you take sources from questionnaires, manual inputs, and defaults to finalize your recommendations to clients.

Reason # 3: Toggle Between Strategies, Entities and Years

How much would it be if you toggled between strategies? Entities? Years? The ability to quickly see these “what if” scenarios helps you not only maximize tax savings, it saves you time from trying to figure it all out yourself! Creating a tax plan takes a lot of time—which is why so many are now choosing to automate this entire process.

Reason # 2: Remove Complications

What is the actual tax savings when each strategy adds deductions and lowers taxable income across tax rates? This is why so many accountants and tax professionals never bother to start tax planning—it just gets complicated. Now, with 2021 Tax Planning software, much of the intimidation and fear of “getting it wrong” has evaporated because our algorithms already take into account how deductions might lower your client’s taxable income.

Reason # 1: Give Value to Clients

Of course, the best reason to begin tax planning in 2021 is to give more value to your clients. Imagine saving them tens to hundreds of thousands of dollars this year, and how every year going forward they could enjoy those compounding savings. This is why many firms are now focusing on tax planning as their exclusive, or at least primary, service offering. The ROI is huge, the profits for your firm are great, and everyone is happy putting money back into their pocket rather than overpay the IRS.

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Read about how tax and accounting firm owners can help clients prepare for tax hikes in 2021.