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Expanding to include financial advising services

Succession Planning & More: Benefits of Adding Wealth Management Services to Your Firm


Wealth management services can add a new dimension to your practice. These services will also enable you to enhance the client experience and your ability to deliver better results for your clients. But how exactly will you and your firm benefit?

Jan 10th 2020
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Wealth management services can add a new dimension to your practice. These services will also enable you to enhance the client experience and your ability to deliver better results for your clients. In addition, it should add revenue and value to your firm. In the end, isn’t this what we are all striving for?

In my previous article, “Adding Revenue & Wealth Management Services to Your Firm” I showed you the various ways of incorporating these services into your practice. Now, let’s dive into the benefits you could potentially see from moving forward. Adding these new services must come with a benefit if you are going to put the time, effort and energy into rolling them out to your clients. Otherwise, why go through the hassle?

I see four main benefits of adding wealth management services to your tax practice:

1. Enhanced Client Experience 

Many wealth management decisions are closely tied to taxes and other potential tax ramifications that usually need to be reviewed with a client’s tax advisor. Having these services under one “roof” will provide the client with the assurance that the wealth and tax advisors are working together and for their best interest. It does not matter which method you use to add these services, but it does require that both disciplines work together.

Clients feel that their needs are being fully addressed when their advisory team is in contact with each other. Ultimately, this leads to a better client experience and increases client longevity and revenues to the firm.

2. Achieve Better Results   

Having the wealth advisor and tax advisor working together adds an increased likelihood clients will achieve better results. Many times, minor adjustments can lead to major improvements. For example, as clients approach the year's end, there may be opportunities to perform tax-loss selling or use other tax strategies that may lead to a lower tax bill. This could save your client a significant amount of money, and all it requires is that you work with their wealth advisor. This is something that should happen for your clients on a regular basis, but it may not be. Now that you offer wealth management services, you can ensure that these types of issues are addressed, reviewed and handled in a favorable way for your client.

3. Increased ROI

In a service business, such as a tax advisory practice, it is important to retain clients, increase the amount of business you do with them and encourage referrals. If you make their experience better, you should increase the longevity of the client, have them do more business with you and increase the likelihood they will refer more business. All of this will result in enhanced revenue for the firm, providing you with greater ROI.

4. Better Succession Planning

Whether you have a plan on exiting at a certain point or not, you should have succession in mind. All of the benefits we have discussed will add value to the overall firm and enhance the potential value when you exit. Imagine how valuable it will be to show you repeatedly enhance client experience, provide clients with better results, have a proven method for referrals and have clients who remain with you for decades. 

The benefits of adding wealth management services to your practice could be game-changing, but they will not come without a good deal of hard work. Once you decide what route you want to take, you need to implement a plan to start rolling it out. You will want to start slowly with a couple of your best clients to ensure they are receiving value and are providing the benefits that they want and appreciate. Once you have this process working for you, the benefits will begin to show immediately.

There are very clear benefits of adding these services to your practice, in both the short and long term. I challenge you to explore this in the coming year and reap the benefits. 

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.

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