LivePlan & Karbon: Best practices for delivery advisory services

Transcription

1 LivePlan & Karbon: Best practices for delivery advisory services

2 liveplan.com/strategic-advisors Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

3 events.karbonhq.com Want to know how Best practices: to double your firm? Delivering advisory services Karbon Edition Two is here! events.karbonhq.com Handling tax time Tracking time Bookkeeping workflows Onboarding new staff How firms use Karbon

4 Today s speakers Jason Ackerman John Bovard Kathy Gregory Ian Vacin BNA CPAs & Advisors Bovard CPA Group Palo Alto Software Karbon CPA, CFP, CGMA Managing Partner LivePlan Program Mgr. VP Education

5 Advisory is the future of accounting: traditional compliance will become completely automated in the next few years. If you aren't positioning your firm for this change, your firm will probably not be around in the future. Jason Ackerman, BNA CPAs & Advisors, CPA

6 Advisory services provide business owners the roadmap to their future success and leads to a true partnership between business and firm. John Bovard, Bovard CPA Group, Managing Partner

7 Introducing LivePlan Your strategic advising solution. Anywhere. liveplan.com/strategic-advisors

8 WHAT SMALL BUSINESSES WANT Bplans survey of 500 SMBs likely to seek accountant s help in next year. Today, if you could get help in one area of your business, what would it be?

9 LivePlan Method for client advisory: software + business process. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

10 Advise clients with bite-size information they understand. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

11 Benchmarks add greater depth to advisory. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

12 Lean planning makes the difference for successful advisory. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

13 Financial forecasting made easy - step by step with wizards. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

14 On the fly cash flow modeling using assumptions. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

15 LivePlan Method business process for advisory tasks. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

16 Introducing Karbon A whole new approach to practice management karbonhq.com

17 Get above your as a team. Don t just read it, action it. events.karbonhq.com

18 Keep track of your full relationship with clients and contacts. events.karbonhq.com

19 Get the work done collectively, collaboratively and repeatedly. events.karbonhq.com

20 Put clients to task and remind them automatically. events.karbonhq.com

21 Work the way you want to. events.karbonhq.com

22 Remove blind spots and get full visibility across the work. events.karbonhq.com

23 Know what is happening within your practice and in regards to your clients. Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

24 Get Karbon: karbonhq.com Want to know how to double your firm? Karbon Edition Two is here! events.karbonhq.com

25 Before we get started A few tips

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27 1 Close any apps that might slow the connection. 2 We ll discuss questions at the end of the webinar. 3 Have fun and learn!

28 Polling question

29 Best practices for delivering advisory services #1: Theory: Advisory service processes #2: Tax: Changes to tax laws & to your processes #3: In practice: BNA CPAs & Advisors and Bovard LLC #4: Tips & tricks with the experts #5: Wrap up

30 Section #1: Theory: Advisory service processes

31 Who to target Top candidates: Owner frustration in biz performance Books were a mess to clean up No cloud accounting in place Ratio analysis indicates things amiss No accounting professional in the mix Client requirements: Rapport has been established Client is a promoter Clear case of value can be made Willingness to pay No existing advisor conflict

32 How & when to approach Rethink: Advisory must be sold differently than compliance based work. Plan: Tax time is a chance to reframe the relationship. Try a goal session. Model: Show the client how it will look & feel by modeling the relationship. Engage: Offer some engagement upfront. Some work will be front loaded. Sell: Frame the relationship. Learn client s goals. Get them hooked. Close: Establish fixed pricing based on a ramp-up period.

33 Principles to be effective Change: Must help the client find the change necessary to meet their goals. Two types of change: change in biz operation, or to the goal itself. Communicate: Must be willing to see clients regularly. Confidence: Must have confidence in the client s transactional data (clean). Lean: Must accept that lean planning is necessary to successful advisory. Effort: Forecasts cannot be automated! Invest the time & effort. Pricing: Cyclical or fixed price billing is best.

34 Four resource guides to assist Task list Kick off meeting Plan meeting Advisory meeting liveplan.com/strategic-advisors/implementation

35 Process: Advisory services

36 LivePlan Method for Advisory Services

37 Kick off: Set up LivePlan Connect Liveplan to GL Set up scoreboard Set up benchmarks Set up pitch Schedule kick-off mtg Prepare for kick-off Host kick-off meeting Set Plan meeting date

38 Kick off: Set up LivePlan Connect Liveplan to GL Set up scoreboard Set up benchmarks Set up pitch Schedule kick-off mtg Prepare for kick-off Host kick-off meeting Set Plan meeting date Plan: Prepare for Plan mtg Problem worth solving Target market Sales channels & mktg Resources (e.g. IP) Contractual items Publish pitch for client

39 Kick off: Set up LivePlan Connect Liveplan to GL Set up scoreboard Set up benchmarks Set up pitch Schedule kick-off mtg Prepare for kick-off Host kick-off meeting Set Plan meeting date Plan: Prepare for Plan mtg Problem worth solving Target market Sales channels & mktg Resources (e.g. IP) Contractual items Publish pitch for client Model: Gather historial P&L Review (trends & ratios) Compare w/ benchmarks Set forecasting categ. Determine revenue & GM growth; Expense ratios Gather beginning balances for start of plan

40 Kick off: Plan: Model: Build: Set up LivePlan Prepare for Plan mtg Gather historial P&L Enter revenue forecast Connect Liveplan to GL Problem worth solving Review (trends & ratios) Enter direct costs Set up scoreboard Target market Compare w/ benchmarks Enter personnel Set up benchmarks Sales channels & mktg Set forecasting categ. Enter expense forecast Set up pitch Schedule kick-off mtg Prepare for kick-off Host kick-off meeting Resources (e.g. IP) Contractual items Publish pitch for client Determine revenue & GM growth; Expense ratios Gather beginning balances for start of plan Enter assets Enter dividends Enter tax rates Set cash assumptions Set Plan meeting date Enter financing needs Enter beginning balances Finalize mapping

41 Kick off: Plan: Model: Build: Advise: Set up LivePlan Prepare for Plan mtg Gather historial P&L Enter revenue forecast Confirm meeting date Connect Liveplan to GL Problem worth solving Review (trends & ratios) Enter direct costs Review scoreboard Set up scoreboard Target market Compare w/ benchmarks Enter personnel Review benchmark data Set up benchmarks Sales channels & mktg Set forecasting categ. Enter expense forecast Prepare client notes Set up pitch Schedule kick-off mtg Prepare for kick-off Host kick-off meeting Resources (e.g. IP) Contractual items Publish pitch for client Determine revenue & GM growth; Expense ratios Gather beginning balances for start of plan Enter assets Enter dividends Enter tax rates Set cash assumptions Host monthly meeting Send meeting wrap up Set Plan meeting date Enter financing needs Enter beginning balances Finalize mapping

42 Get the template karbonhq.com/templates

43 Polling question

44 Section #2: Changes: Tax bill & advisory processes

45 Highlights of new US tax bill Audience: Individuals Businesses Duration Through 2025 tax year Permanent Income taxes Seven: 10, 12, 22, 24, 32, 35, 37% AMT: Increased exemption One: 21% AMT: Eliminated Deductions, exemptions, and depreciation $12K (single), $24K (couples) No personal exemptions $2K child tax credit SALT: Limited to $10K Mortgage interest: Up to $750K Interest deduction limitations NOLs: 80% of taxable income Bonus depr.: 5 yr, deduct 100% Luxury auto: Increased limits Section 179 expensing: $1M Pass-throughs 20% deduction with phase out Disallowed for special trades Other key items Health ins.: Mandate eliminated 529: expands to cover K-12 Estate tax: Above $11.2M Expansion of cash method International: Territorial system Repatriation: 8% (15.5% cash) NYT tax summary article: nyti.ms/2b0gnir

46 Insights from the AICPA Politically motivated and the profession s hands were tied Beneficiaries: Construction, real estate, and rural communities Protected and expanded cash method of accounting Pass-through treatments dissimilar Business interest deduction Preservation of deferred compensation Re-appearance of SALT Journal of Accountancy articles: bit.ly/2cs4kwl & bit.ly/2dpz0h0

47 Tax bill considerations with your clients 1. Pass through businesses: Be sure a client is in the right entity and positioned to take advantage of lower rates (esp. personal service biz). 2. $10K cap on state & local tax deduction: Biggest negative is for those people in high tax states with high long-term mortgages. 3. Holistic view: Importance of viewing impact and strategies on a combined basis - owner and business. 4. Lower corporate tax rate: Provides both opportunities & challenges which highlight importance of entity structure planning

48 Tax advisory considerations 1. Interconnected: Tax and CFO advisor processes are intertwined. Clients are unique. Your process implementation will vary as required. 2. End of year: For things like the new pass-through business provision, a company needs to get their taxable income level at the right level. 3. Focus: Customization of services to focus on industry/entity structure of business and lifecycle of business from startup to exit. 4. Education: Recognizing the importance of taxes to business owners and having understanding reflected in service offerings.

49 Advisory best practices 1. Be up-to-date: Make sure bookkeeping is up-to-date so you can get accurate numbers for a projection. Don t scramble at the last minute. 2. Software: Input your projections into a tax planning software. 3. Set an agenda: Predetermine 3 discussion points to go over with a client, but always let the client lead with their top-of-mind questions. 4. ABCs: Always be closing. Seize the moment of your client meetings. 5. Frame & model the relationship: Don t sell them advisory, just model the experience and tell them what they can expect from you. 6. Be consistent: Define your advisory scope of work, and set a range of fixed price choices. Don t do different work for each client.

50 Section #3: In practice: BNA CPAs & Bovard CPA Group

51 New US tax bill Opportunity vs. disruption

52 Tax advisory perspectives Now vs. future actions

53 Sales & marketing How do you sell, position, and price?

54 Advisory services Approach and lessons learned

55 Section #4: Deploying advisory services in your practice

56 Process vs. Placement LivePlan vs. Karbon

57 LivePlan + Karbon: How to use together 1. Review: Download the LivePlan best practice advisory process and compare with any current process you use today. 2. Modify: Alter the process in Excel to reflect your standardized approach. Remember, ~80% of the process will fit a given client. 3. Import: In a Karbon work template, copy/paste process including process steps, descriptions, job roles, and due dates. 4. Deploy: Create work for existing & new clients using the template. 5. Customize: For a given client, adjust the checklist to reflect their unique needs.

58 Use the LivePlan advisory services from directly within Karbon. events.karbonhq.com

59 Polling question

60 Section #4: Tips & tricks with the experts

61 New tax tips to clients Plans: The new law allows $10K/child to be used for private K-12 education. Easy way to get a deduction for money already spent. 2. Education: Spend time to educate them on the changes. It provides them piece of mind and opens the door for further discussion. 3. Patience: Emphasis is on exercising patience in adopting new tax strategies to the 2018 Tax Act. 4. Depreciation: Immediately expense the cost of new and used assets with a life of 20 years or shorter. Begins to phase out in 2023.

62 Tips & tricks of advisory services 1. Use tech: Don't cheap out on technology - get the best planning and processing technology so you can spend more time advising. 2. Action: Review clients & be proactive with clients negatively impacted. 3. Seize the opportunity: EVERY business owner is interested in entity structure and reducing tax burden. Capitalize with a service offering. 4. Give to get: Understand the opportunity, provide a sampling of what is possible, be clear on the goals, and apply the effort to close. 5. Strategic planning: Tax planning doesn t ensure growth. To increase valuation, you must focus on lean, strategic planning. If done right, the tax portion can be worked into the strategic planning done monthly.

63 Don't be afraid to give advice. As accountants we were trained to be conservative and never give a straight answer. That just isn't going to work in today s world. Clients want advice/answers, and it's your duty to help them. Jason Ackerman, BNA CPAs & Advisors, CPA

64 Be selective. The success of our advisory practice is closely linked to the success of our clients. Highly successful clients lead to greater advisory opportunities. John Bovard, Bovard CPA Group, Managing Partner

65 Wrap Up

66 Best practices for delivering advisory services #1: Theory: Advisory service processes #2: Tax: Changes to tax laws & to your advisory processes #3: In practice: BNA CPAs & Advisors, Bovard CPA Group #4: Tips & tricks with the experts #5: Wrap up

67 LIVEPLAN METHOD FOR STRATEGIC ADVISORS LivePlan Software: free 3 month trial Training & Certification: self study or one-on-one Implementation Volume Pricing: $120 per license billed annually Marketing: blog, toolkit, EA Directory Support: accountants@liveplan.com

68 events.karbonhq.com Want to know how Best practices: to double your firm? Delivering advisory services Karbon Edition Two is here! events.karbonhq.com Handling tax time Tracking time Bookkeeping workflows Onboarding new staff How firms use Karbon

69 Questions?

70 Thank you!

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