Ideal candidates will be growth-oriented with property owning clients.
As with anything in life, a private label tax solution isn’t right for everyone. In general, we find that firms with aggressive growth goals and a client base made up of certain types of commercial property owners are more likely to reap the benefits of private labeling and a strategic partnership with a firm specializing in tax strategies based on an engineering foundation.
Here are several characteristics that indicate that a private-label engineered tax solution will be right for your firm:
1. Key industries
Certain industries and property types lend themselves to benefiting from engineered tax solutions. For example:
- Restaurants, hotels, resorts, hospitals, and many other types of facilities typically have a high proportion of nonstructural components that can be identified for accelerated depreciation in a cost segregation study.
- Retail businesses, manufacturers and medical facilities regularly invest in property improvements that can qualify for the Section 179D tax deduction.
- Contractors and architects who design public buildings also can take advantage of 179D tax deductions.
- Software developers, biotech and other research-heavy industries can typically generate significant tax savings from research and development (R&D) tax credit studies.
A CPA firm with a high proportion of these types of clients—or with aspirations to target these clients—is a better candidate to establish a private-label strategic partnership. By contrast, a CPA firm that focuses on not-for-profit entities or employee benefit plans most likely would not be a good fit for such a relationship.
2. Top Line Growth
Are you looking for a new way to grow your firm’s top line? Perhaps you’ve been considering launching a specialty tax service line, but you lack the in-house technical expertise and marketing muscle to do so.
By aligning with the right strategic partner, your firm has instant access to all the infrastructure you need to build a revenue-generation machine, including:
- Deep tax and engineering expertise backed by extensive research into constantly evolving case law, tax code and other legislative developments
- Private-label marketing materials and sales support
- Technical seminars and training for your team members and your clients
- Project and client management support
New revenue from marketing a private-label tax solution can accelerate your firm’s growth, give you a broader mix of products and services, and help grow your firm’s market share.
3. Need to Retain Clients After an Acquisition
Is your accounting firm currently pursuing a growth strategy that involves acquisitions of other CPA firms? One of the greatest risks to the acquirer in such a transaction is that key client relationships of the acquisition target company can become tenuous. After all, their firm’s clients don’t know your firm or feel any loyalty to you or your partners.
Tax strategies based on an engineering foundation and tax incentive and credit discovery can be just the “feel good” service offerings you need to show those clients the value your firm can offer. A single cost segregation study for a client could identify tens or even hundreds of thousands of dollars in tax savings. The goodwill generated by those tax savings can help your firm hold on to those key clients that made the acquisition attractive in the first place.
Think your firm could benefit from a private label tax solution? Contact us or call (800) 591.0148 to schedule a consultation.