Strategic partnership positions firm to earn client loyalty (and $120,000 in fees).
As a forward-looking CPA who serves growing businesses and owners of commercial property, you have significant opportunities to delight your clients through reduced tax bills and increased cash flow. Partnering with the right provider of cost segregation and other engineering-based solutions will help ensure that you can deliver the greatest possible amount of tax savings related to tangible property.
Consider the following example:
After a period of more than 20 years of flat or declining revenues, a 100-year-old manufacturer of motor parts was starting to see increasing sales and margins. In fact, business was looking so good that the company was planning to expand into a new $30 million facility.
The spark behind this renaissance was an injection of new leadership. The son of the former owner (and grandson of the founder) had recently taken over and undertaken initiatives designed to improve the business’ margins and position it for growth. As one of these initiatives, the third-generation owner sought out a new CPA firm with the skills and resources to support and enhance this growth. When he asked around for such a progressive CPA firm, he kept hearing the name of one firm—we’ll call them Progressive CPAs.
Although they are a small firm, Progressive CPAs possesses the tax expertise and mindset that the manufacturer needed to improve margins and profitability. So when the company landed a major account and needed to move into a 250,000-square-foot facility, the owner looked to Progressive for ideas on making the cost of the expansion more manageable.
The company’s newly profitable status was about to trigger a hefty tax bill, which would swallow up the cash the company would need build the new plant. And after 20 years of almost zero retained earnings, and a new leader at the helm, creditors were not exactly lining up at the door with generous terms.
But Progressive CPAs had a secret weapon in their back pockets in the form of a strategic partnership with CSP360. Through this partnership, Progressive has total access to CSP360’s 15-plus years of experience helping commercial property owners accelerate depreciation deductions and identify other tax-minimization opportunities based on building, acquiring and improving real estate and other tangible property.
Tapping into this extensive experience and research, Progressive was able to identify more than $8 million in accelerated depreciation deductions for the manufacturer, plus additional current-year deductions based on a 263(a) repair and maintenance review. Those tax savings freed up cash that the company needed for those capital expenditures, which put a big smile on everyone’s faces.
And what made Progressive CPAs smile? True, they earned a handsome engagement fee of $120,000 for the project. But even better, the CPA firm proved to this new client that it could live up to its name by delivering progressive tax solutions.
The Secret Weapon: A True Partnership
The secret weapon that enabled the CPA firm to earn this manufacturer’s loyalty and a hefty engagement fee was a strategic partner who is truly integrated with the firm and operating as an extension of the firm—not simply a vendor looking to sell a project.
When the expansion project came up, Progressive CPAs didn’t have to call around to multiple cost seg vendors, seek quotes, and verify credentials. The firm had already fully vetted CSP360’s tax and engineering expertise, backed by more than 15 years of research on tax code and case law. And so they could be confident that the manufacturing client was in good hands, and they even trusted CSP360 to represent the firm at client meetings. That sort of trust does not come from a vendor relationship—only from a true strategic partnership.
CSP360 can help you achieve the same types of results with your commercial property owners. Let us take a Deep Dive through your client list to uncover opportunities to slash your clients’ tax bills and strengthen your client relationships.