Move beyond tax prep and become the trusted advisor your clients crave. Discover practical strategies to deliver high-value tax planning that strengthens relationships and drives firm growth.
Highlights
Tax and accounting firms must transition 1040 clients to advisory services for growth.
Key steps include informing clients, understanding needs, and communicating value effectively.
Tailored strategies, bundled services, and technology are crucial for success.
The landscape of tax and accounting services is evolving rapidly. Today’s 1040 clients expect more than just tax preparation—they’re seeking comprehensive financial guidance and strategic advice.
For you, transitioning these clients to advisory services isn’t just a value-add; it’s a strategic move that can deepen relationships, boost client satisfaction, and drive firm growth.
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Inform clients of your advisory services
Understand the client’s financial needs
Communicate the value of advisory services
Develop a tailored advisory strategy
Bundle services for enhanced value
Use technology to your advantage
Build long-term client relationships
Address client concerns
Inform clients of your advisory services
In fact, according to a 2025 Thomson Reuters Institute survey of tax and accounting professionals, 75% of respondents indicated that their clients strongly desire more tax and business advice.
In some cases, however, it is likely that clients don’t know what an advisory services relationship looks like. Especially for 1040 clients who typically don’t see past the “numbers” work their accounting firms do. It is crucial that firms are purposeful about conveying the non-transactional services they are prepared to deliver.
Understand the client’s financial needs
Effective tax planning starts with a deep understanding of each client’s unique financial situation. Advisory services allow you to go beyond compliance, delving into your client’s financial goals, risk tolerance, and long-term plans.
By offering advisory services, you can provide a holistic approach to tax planning, helping clients see the bigger picture and make informed decisions for their future.
Tip for tax partners & managers: Use client engagement as an opportunity to position tax planning as a retention tool. Advisory services can help you maintain a competitive edge and expand your offerings beyond basic tax preparation.
Tip for small firm owners: Implement time-efficient frameworks that don’t require extensive resources. Focus on high-impact, low-complexity strategies that can be executed with minimal staff.
Tip for tax associates: Use step-by-step checklists to systematically address client needs and build your advisory skillset.
Communicate the value of advisory services
Clients may not immediately see the value of advisory services, especially if they’re accustomed to traditional tax preparation. Effectively communicating the value of advisory services is crucial to encouraging clients to embrace this expanded service offering.
Help them understand how advisory services in tax planning can enhance their financial well-being and support their long-term goals. This involves clearly articulating the benefits of a comprehensive approach to financial management, which goes beyond the confines of annual tax compliance.
Advisory services empower clients to optimize their financial strategies, minimize tax liabilities, and plan for future milestones. By sharing success stories and tangible outcomes achieved through advisory engagements, tax professionals can illustrate the real-world impact of these services, making a compelling case for their adoption.
Strategies to communicate value
Value-based pricing. Align the cost of your services with the perceived value to the client. This approach makes it easier to justify higher fees for strategic advice and helps clients understand the long-term benefits.
Use client communication templates. Have ready-made scripts on hand to articulate the value of planning services, saving you time and ensuring consistency for clients.
Develop a tailored advisory strategy
Every client is different. Create personalized plans that define the scope of your advisory services and set clear expectations. This involves collaborating with clients to understand their specific circumstances and aspirations.
A comprehensive advisory strategy may encompass tax planning, investment advice, retirement planning, and estate management. Tax professionals should work closely with clients to design a roadmap that guides them toward their financial goals. Regular reviews and adjustments to the strategy ensure it remains relevant and effective in light of changing circumstances and evolving client needs.
This dynamic approach fosters a sense of partnership and trust, reinforcing the advisor-client relationship.
Advisory tip: Intentionally delineate what your services are to prevent scope creep. Clearly outline the difference between maintenance services (e.g., tax preparation) and advisory services (e.g., financial planning, investment advice).
Bundle services for enhanced value
Bundling multiple services, such as tax preparation, financial planning, and investment advice, can offer clients a more comprehensive and convenient package, often at a discounted rate.
Bundling services is more than a pricing strategy. It’s a way to deliver convenience and demonstrate holistic value to clients. Instead of offering tax preparation as a standalone service, consider creating packages that combine complementary offerings such as:
Tax preparation + financial planning: Help clients align tax strategies with long-term financial goals.
Tax preparation + retirement planning: Position your firm as a partner in securing their future.
Tax preparation + investment advisory: Offer insights on tax-efficient investing strategies.
When done well, bundling drives client retention because clients receive multiple solutions under one roof, making it harder for them to shop around. It also supports revenue growth, as bundled services often justify higher fees while still feeling like a deal to clients. Finally, bundling improves operational efficiency by standardizing packages, which streamlines internal processes and pricing.
Structuring tip: Use tiered bundles (Basic, Premium, Elite) to cater to different client segments and budgets.
Use technology to your advantage
Technology is no longer optional. It’s the backbone of modern advisory services. By integrating advanced tools, you can deliver faster, smarter, and more personalized advice.
Key technologies to consider:
Cloud-based platforms: Enable real-time collaboration and secure document sharing.
AI-powered analytics: Identify patterns in client data, predict future tax liabilities, and uncover planning opportunities.
Automation tools: Reduce manual tasks like data entry and report generation, freeing time for strategic work.
Client portals: Offer clients 24/7 access to their financial data and planning dashboards.
The benefits of tech integration are significant: scalability to handle more clients without adding staff, accuracy to reduce errors and improve compliance, and personalization through predictive analytics that tailor advice to each client’s unique situation.
Integration tip: Start small. Integrate one tool that solves your biggest pain point (e.g., client communication or data analysis) and expand gradually.
Build long-term client relationships
Trust is the foundation of any successful advisory relationship. Advisory services position you as a trusted financial partner, leading to increased client loyalty and referrals.
By consistently delivering value and demonstrating a commitment to client success, tax professionals can strengthen client relationships and enhance their reputation as trusted advisors. This not only benefits clients but also positions the firm for sustained growth and success.
To build long-term relationships, tax professionals should prioritize regular communication with clients, whether through scheduled meetings, phone calls, or digital communication channels.
By staying engaged with clients, tax professionals can ensure they remain informed about any changes in the client’s financial situation or goals, allowing for timely adjustments to the advisory strategy.
Address client concerns
Clients may have questions about the value and cost of advisory services. Address these concerns proactively:
Clear communication: Explain the long-term benefits and use technology to enhance service efficiency.
Value-based pricing: Justify costs by aligning them with the client’s perceived value.
Technology integration: Show how digital tools improve accuracy and convenience.
Integrating advisory services to grow your tax firm
Transitioning 1040 clients to advisory services is a strategic move that can significantly enhance client satisfaction and firm profitability.
By understanding client needs, communicating the value of advisory services, developing tailored strategies, bundling services, leveraging technology, and addressing client concerns, tax and accounting professionals can successfully make this transition.
Get more insights and guidance on building a competitive advisory service structure in our white paper.
