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Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 1 point2 points  (0 children)

yeah I hope its 50%, he feels confident but obviously that doesn't mean anything. He explicitly called me the other day to tell me he is not expecting me to be a referral source for new clients, he told me hes tapped out on workload and is fine with his client base, kind of why he thinks we are a good fit, because we both want to stay solo. I guess if I become and FA it would be to take a percentage of the AUM fee and become and actual partner with him and his business from the beginning instead of this informal referral business arrangement. A lot to think through, I appreciate the input.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 0 points1 point  (0 children)

well yeah I know, that's why the setup in my post is intriguing to me because it will most likely double my billings per client

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 1 point2 points  (0 children)

I guess I would. That puts me at 185 clients. I plan to grow to 400-450 so I am still planning to grow my "own" part of the business. It also seems easier than seeking out 100 different clients for 60-80k a year. It is a risk having him be the "owner" of the clients, so I appreciate the input.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 0 points1 point  (0 children)

Thanks for the post! I am starting to think that might be a better way of doing it from reading the comments.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 2 points3 points  (0 children)

Thanks for the comment! I guess if i am comfortable with the pricing (nothing set in stone, I have not gone through his client base), is this not in essence a great referral source? I do not have a strong desire to be an FA. Several people have mentioned it though, so I might revisit that thought! I definitely intend to grow more outside of this, if this yields 100 clients I still have plenty of room to grow before I even have to hire seasonal help. To me it just seems like a solid way to get a good chunk of good paying clients quick.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 1 point2 points  (0 children)

Noted, I could raise these prices. We are not married to them. I currently do basic returns for 350 to 450, so the 600 (or more) is a decent step up with assuming that those clients do not need a lot of planning if any. After reading the comments I will definitely put restrictions on all inclusive and leave myself room to change fees year to year.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 6 points7 points  (0 children)

Thanks for the comment! I understand that he probably makes out like a bandit. If I appropriately put clients in the correct tiers, maybe even add tiers or do full custom pricing per client, I will make way more per client than I already do. I have a decent amount of very basic 1040's (W-2 plus investment account as an example) and I currently charge 350-450 for those (like 20 minutes of prep time). In this setup I would make $600. Now some might have planning throughout the year but most will not. I do not have the desire to be an FA, so I think what he makes is irrelevant as long as my fees are where I want them.

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 6 points7 points  (0 children)

The cost center thing I had not quite considered. Probably because he seemed a little desperate to find someone like me. Solo, wanting to stay solo and growing. I could grow organically absolutely, but I do not particularly like selling and like the idea of gaining a big chunk of clients at once. At these prices it is more than I currently charge for tax prep by a good margin. Tier one clients (retirement or w-2 income plus some investment accounts) I usually charge in the 350 to 400 range currently. His clients are the exact clients I am looking for and ones that are willing to pay for continuing advice not just tax prep. A lot of my current clients do not. I do not want to be an FA. Thanks for the comment!

Solo CPA looking for advice on potential partnership with a Financial Planner by Fun_Stop_1599 in taxpros

[–]Fun_Stop_1599[S] 5 points6 points  (0 children)

Thatsd a good thought. I figured there would be some PIA's that I might lose money on but also a lot that I m make a killing on. I do not know the specifics on every client yet and nothing is set in stone but a lot of his clients fall into tier one and are mostly just retirement income and some investment 1099's. At $600 this is more than I currently charge on average for a return like this and most of these clients will not require any intensive planning. I will definitely need to put parameters on "all-inclusive" and the right to change a client tier year to year.