THE TAX PLANNING KIT. a publication by

Transcription

1 THE TAX PLANNING KIT a publication by 1

2 offers turn-key captive insurance solutions that give you the full benefits of a captive insurance company with transparency and a minimum requirement of your time. We help you through each step of the process, from the feasibility study to captive formation and captive management. FEASIBILITY STUDY CAPTIVE FORMATION CAPTIVE MANAGEMENT REQUEST A CONSULTATION Las Vegas Blvd. South Suite 1 Las Vegas, NV (office) (fax) P.O. Box Bridge Street Bigfork, MT (office) (fax) 2

3 THE TAX PLANNING KIT BY MICHAEL MILAM, CPA, CGMA, MACC Michael is a founding and managing partner of Milam, Knecht & Warner, LLP, a regional CPA firm in southern California. Michael has 25+ years of experience in tax strategy, including teaching business owners how to maximize the benefits of a captive insurance strategy. You can connect with Michael on LinkedIn. Michael Milam, CPA, CGMA, MAcc Managing Partner - Milam, Knecht & Warner, LLP Connect on LinkedIn 3

4 THE INTRODUCTION Clients often say they are not sure that their CPA is really finding all the deductions they could be finding. Your clients need to see the value of your tax planning. They, in fact, need to be part of the process. Your clients needs to see that you have a methodical approach to the planning process; just telling them what to pay, does not show the value. Having a meeting with a client using a Tax Planning Binder helps them be part of the process. There should be a binder for them and a binder for you. Some of the planning items may seem simple, but take the time to review them with your client. They really want to understand and be part of the process. I put together this tax planning kit to get you started and help you approach your clients on tax planning. By no means is this the only way, but rather, I am sharing what works for me. Overall, make sure you are providing the best service and an exceptional experience to your clients. That will keep your clients happy and referring business to you. YOUR CLIENTS NEED TO SEE THAT YOU HAVE A METHODICAL APPROACH TO THE PLANNING PROCESS. 4

5 TAX PLANNING MEETING GOALS & AGENDA CPA TOOLS GOALS: Proactive tax planning with your client BINDER DATA: Your Tax Planning Binder should include the following: 1. Prior year s individual federal & state tax returns 2. All prior year s entity returns 3. Prior year s financial statements 4. Current year s financial statements 5. Current full-year projections 6. Tax planning checklist section See the accompanying excel sheet for checklist suggestions. CLIENTS OFTEN SAY THEY ARE NOT SURE THAT THEIR CPA IS REALLY FINDING ALL THE DEDUCTIONS THEY COULD BE FINDING. SAMPLE AGENDA: 1. Review prior year s financial statements 2. Review prior year s tax return 3. Review current year s financial statements 4. Review current year s tax return 5. Review current year s projections 6. Review capital budget for the current & next year 7. Review current year s estimated taxes 8. Tax planning checklist 9. Start the tax planning checklist 5

6 TAX PLANNING MEETING BINDER CHECKLIST CPA TOOLS GOAL: Proactive tax planning with your client Your Tax Planning Binder should include the following: 1. Prior year s individual federal & state tax returns 2. All prior year s entity returns 3. Prior year s financial statements 4. Current year s financial statements 5. Current full year projection 6. Tax planning checklist Additional Resource See the Tax Planning Checklist Agenda excel file for the tax planning checklist and the tax planning meeting agenda template. Depending on your client s situation, modify the checklist and agenda. Also, add your firm s logo and client s logo to the top of the sheet. 6

7 CPA TOOLS SAMPLE 1 CPA TO CLIENT GOALS: Dear Bill: Schedule a 2013 tax planning meeting with your client With income tax rates increasing, we should start your 2013 tax planning as soon as possible. We would like to discuss several tax saving strategies for It s becoming increasingly important to evaluate certain tax strategies earlier in the year as some require time to implement. As you know, many strategies cannot be implemented in the eleventh hour. There are a couple of high leverage tax saving strategies we think we can implement this year. These may be able to provide additional protection and tax savings to you and/or your business. They do require time and planning to implement. Fortunately, we still have time this year. I ll call you in the next few days to set up a time to discuss your year-to-date results, expected profitability, and projected 2013 tax liability. We appreciate the opportunity to be of service to you. Warm regards, PERCEIVED INDIFFERENCE. Regular communication or touches with your clients will keep them from thinking you are indifferent to them and do not value them as a client. We have all come across prospective clients who say they are looking for a new CPA because they feel they are not valued or too small for their current CPA. Touches can include: s from partners or staff checking in or sharing relevant news articles; Firm newsletters Client appreciation gifts Holiday cards Face-to-face meetings CPA 7

8 CPA TOOLS SAMPLE 2 CPA TO CLIENT GOALS: Dear Bill: Confirm scheduled tax planning meeting I look forward to our tax planning meeting at my office on [Date & Time] To prepare the most comprehensive tax plan for you, please bring the following items YTD financial Projected income for the rest of 2013 Confirmation of estimated tax payments already made this year Any other financial or business questions that you might have TIP: USE THE MEETING APPOINTMENT scheduler option in Microsoft Outlook as you send this confirmation . This will give them the option to easily add it to their calendar and will greatly reduce the chance of your client having a schedule conflict. We appreciate having you as our client and look forward to creating your 2013 tax plan. Sincerely, CPA 8

9 CPA TOOLS PHONE SCRIPT CPA TO CLIENT GOALS: Hello Bob: Schedule a 2013 tax planning meeting with client I am currently reviewing your 2013 tax plan and I would like to meet with you to see if we can lower the rest of your estimated quarterly tax payments. I sent you an regarding tax planning. Did you get a chance to look at it? I want to make sure that anything we can be doing now gets started now so we are not waiting for the last minute. Several tax planning strategies do not let us wait until the last minute. Would you be able to meet with me on or at my office (could be their office) to spend some time working on your planning? It would be helpful to have some of the following at the meeting: YTD financial Projected income for the rest of 2013 Confirmation of estimated tax payments already made this year Any other financial or business questions that you might have I will send that list to you in an . I look forward to putting our expertise to work for you. I will see you on at am/pm. Thanks again. 9

10 offers turn-key captive insurance solutions that give you the full benefits of a captive insurance company with transparency and a minimum requirement of your time. We help you through each step of the process, from the feasibility study to captive formation and captive management. FEASIBILITY STUDY CAPTIVE FORMATION CAPTIVE MANAGEMENT REQUEST A CONSULTATION Las Vegas Blvd. South Suite 1 Las Vegas, NV (office) (fax) P.O. Box Bridge Street Bigfork, MT (office) (fax) 10