I'm a fee-only financial advisor and a big part of what we do, in addition to investment management, is financial planning. We get deep into tax planning as well, at least compared to other financial advisors, and I constantly get asked by clients if we can prep their taxes as well. I'm thinking about adding tax preparation to my practice and want to know the best way I can get experience with tax prep before actually adding it as an official service offering. I'm already an Enrolled Agent. I'm wondering if I should do tax prep for a franchise like H&R Block or Liberty for a season just to get some experience under my belt, since I don't know what I don't know. What are everyone's thoughts on the best way to approach this?
I'm a Financial Advisor that wants to add Tax Preparation to my practice
Answers
Love the way you describe your problem. Not knowing what you do not know.
And yes, I speak from my own experience as a retired CFO of major companies with in depth experience in international experience in a corporate environment. A hands on approach, in direct contact with customers is absolutely the best way to prepare yourself for your plans to add tax services as a value added product to your business. A Tax Season at any of the Franchise outlets would provide you that.
Adding tax advise to Financial advisory services is increasing your liability considerably. Make sure, that you are operating under a water tight "corporate umbrella" and that you have every customer signing bullet proof "engagement letters" that cover you for any and all such exposures.
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