While financial advisors aren’t typically the ones preparing or submitting tax documents for their clients, they should be every client’s go-to professional for financial advice. And yes, that often means gathering and analyzing clients’ tax documents.
Whether or not you’re an advisor with a CPA certification, building trust with clients includes clearly understanding their financial goals and unique situations and providing advice on tax planning and tax preparation. Indeed, in a recent webinar, Docupace CMO Ryan George pointed out that despite 92% of clients expecting tax planning advice, only about 25% actually receive it.
If you’ve historically fallen into the category of advisors who don’t provide input on their clients’ taxes, this blog is for you. Let’s break down three strategies advisors can employ to help their clients prepare for tax season.
Automate Tax Document-Gathering Procedures
While it might seem obvious, the first step in successfully preparing your clients for tax season is obtaining the records of their tax returns. However, this is often easier said than done. Document gathering can be a tedious and time-consuming process, and the last thing clients want from their advisor is going through the rigmarole of back-and-forth communications about taxes, year after year.
The best solution is to utilize a document management system that can automatically organize and store all client tax documents in one secure location. Advisors love using Docupace’s platform because it is completely secure, compliant, and even sends reminders to help advisors stay on top of yearly or repeating tasks.
Here are a few ways Docupace’s platform can make a difference when it comes to document gathering and management:
- Integrations with your CRM will automatically pull client data to applicable forms.
- Automated processes can streamline your back-end process, helping you spend more time on client work than paperwork.
- Automated communications help you save money on disclosures and stay compliant.
Communicate Proactively with Clients
There’s nothing more important than communication in an advisor/client relationship, and the same goes for when it comes to analyzing their taxes. For advisors to really stand out with clients, they should proactively communicate any findings from their clients’ tax reports. After all, if they’re going to the trouble of sending you their documents, clients will expect some analysis or advice in return.
Here are some areas that clients might expect their financial advisor to communicate about when it comes to their taxes:
- Checking for accuracy on all financial data.
- Looking for future planning opportunities.
- Communicating that all their information has been received, reviewed, and properly stored.
Proactive communication goes a long way with clients. When it comes to taxes especially, there’s no greater gift than peace of mind that everything is going smoothly and there isn’t anything their accountants or other financial team members have missed. Communicating your process, timeline, and findings ensures you’re nurturing the client/advisor relationship over time.
Make the Process Easy & Seamless with Docupace
Finally, the best way to serve your clients’ tax needs is to make sure your back-end process is designed to serve them and their needs. After all, tax information is very sensitive. Clients need to know why you’re asking for their information, receive updates as the process goes along, and then rest easy knowing their financial advisor will protect and guard their data.
Docupace’s platform is the best in the class at all of the above. We provide solutions that run the gamut of document management, including client onboarding, client engagement, automation, and more.
Whether you’re advising on taxes, mitigating a big financial crisis, or simply planning for the future, our platform was built for advisors who want to keep their clients top of mind, not their back-end processes. Learn more by reaching out to us here.
