There’s something rewarding about recommending a great business product to a client – especially when you know it can help you both in the long run.
Like when you find an expense your client can claim, or find a way for them to save money, those moments are the ones that make you happy to be an accountant. These details seem arcane to non-accountants. But you understand that this is subtle, complex work that can make a real difference to your clients.
Every single small win add up to a long-lasting, loyal working relationship.
That relationship is exactly why CPAs should be telling their clients about Tax Investigation Insurance. It’s a valuable product that lets business owners stand up to the CRA without putting strain on their bottom line, or your relationship.
Simply, if a client with coverage is the subject of a tax investigation (a review, audit or appeal), the insurance pays your accounting fees for their defence.
Here are three reasons that trusted accountants are telling their clients about Tax Investigation Insurance:
1) Protect your clients from tax risk that’s out of their control.
It doesn’t matter if you’re the best accountant in the world. If your clients file taxes, they have tax risk.
We know that avoiding any red flags is one way of preventing a tax investigation. Unfortunately, for every red flag we can control (save your receipts!), there is one (or more) that we can’t.
“Don’t make a lot more money this year, than last year. It looks suspicious.” Ok, but what if someone does make a lot more money, or less, or has a cash based business. Those clients are at risk regardless of your best efforts.
Then there’s the selection criteria that we can’t even predict – the secret computer based algorithms that select taxpayers based on CRA’s vast stores of taxpayer data.
We definitely can’t control for that.
As an accountant, it’s your duty to protect your clients from the possibility of an audit.
Tax Investigation Insurance is one simple way to do it.
2) Show existing and prospective clients that you’ve got their back.
“But, PFP” you say “if I recommend Tax Investigation Insurance, won’t clients think I’m incompetent?”
On the contrary, if your clients understand how the CRA is being more aggressive with small business tax compliance, your clients will understand that you are trying to protect them.
After all, the CRA is easy to passionately dislike.
On the other hand, if you don’t tell you clients about the increasing risk of tax investigations, and they are audited?
Then they might question your abilities.
It’s up to you to help your clients understand that the risk isn’t doing taxes poorly, after all, you’re a professional who takes pride in your work.
The real risk is the CRA is targeting businesses in ways we can’t control.
Proactively helping your clients understand why they are at risk can take some of the sting out of a tax investigation.
Tax Investigation Insurance takes it one step further.
Not only will your clients understand why they have been targeted (however unfairly), they will have a solution to the problem.
3) More billable hours for you, comprehensive audit defence work for your clients.
The solution to a tax investigation (review, audit or appeal) is Tax Investigation Insurance.
When your client is audited, you take control of their defence.
You already know the ins and outs of the tax file. You already know the justifications for all expenses and deductions claimed.
All you have to do is help your client stand up to the CRA.
Best of all, every hour you work is billable. No more discounted billing.
You’ll earn what you deserve for your valuable professional work. Your client will get the defence they deserve (not the defence they can afford).
Last, but not least: The protection covers a range of professional fees, so you can consult other tax or legal experts without worrying about the cost filtering down to your client.
So you see?
It’s a win-win.
Billable work for you; top notch defence work for your client.
Everyone is happy. (Except maybe, the CRA.)
CPAs: Are you ready to start telling your clients about Tax Investigation Insurance? Contact us – we can send you informational material to pass on to your clients.
Questions? Contact us for more information or leave a comment below.
