"The Four Pillars of Tax Advice: A Comprehensive Solution for Business Owners"
May 27, 2023
On this episode of Family Business With Purdeep Sangha, we explore the problems with the traditional accounting firm business model and how one accountant created a new approach called the Account Success Formula. This subscription-based approach provides unlimited access to the accountant and incorporates the Four Planning Pillars: business, wealth, retirement, and estate plans, which interconnect and hold up the roof of a client's financial plan. We also discuss the importance of collaboration, creating value for clients, and the need for an integrated strategic approach in providing comprehensive tax advice. Tune in to learn about shaping a new business model, collaboration in the accounting industry, and the significance of passion, purpose, and profit in starting a new venture.
Here are the topics covered in this episode along with bullets:
1. Problems with Traditional Accounting Firms
- Accountants are often seen as technicians having an entrepreneurial seizure
- Billing by the hour and compliance focus
- Business owners not receiving the service they deserved from their CPA firm
2. Introducing the Account Success Formula
- Subscription-based model with unlimited access to the accountant
- Four Planning Pillars to understand clients' business plan, wealth plan, retirement plan, and estate plan
- Tax advice designed based on client's Four Planning Pillars
- Both clients and accountants love the new model
3. Collaboration and Creating Value for Clients
- Collaboration and communication between professionals is crucial
- Focus on creating value for the client instead of billing hourly
- Shift towards creating value for clients
- Recognizing the value that others can bring to clients
- Focusing on all four pillars adds value to clients
- Collaboration is misunderstood as simply passing referrals back and forth
4. Advice and Strategic Planning
- Getting advice from the wrong people can negatively impact business decisions
- Many accountants have tunnel vision and may not be equipped to give effective business advice
- Providing value is the goal rather than simply offering typical advice
- Clients want a trusted advisor who can help with important business ventures and expansions
- The tax advice that most business owners receive is incomplete
5. Speaker's Journey and the Future of MBA Chartered Professional Accountants
- The speaker worked in a traditional accounting practice for 18 years and was eventually made partner
- Partnership collapsed and the speaker started their own accounting practice
- Sold their own practice and wrote a book to help other accountants
- The speaker emphasizes the importance of passion, purpose, and profit in a new venture
- Joined MBA Chartered Professional Accountants as a strategic advisor, became a principal, and now owns a third of the company
- MBA wants to create a national firm across Canada and impact 15,000 business owners
- The speaker is not trying to bash accountants, but highlight the problem with the business model.
1. Problems with Traditional Accounting Firms
- Accountants are often seen as technicians having an entrepreneurial seizure
- Billing by the hour and compliance focus
- Business owners not receiving the service they deserved from their CPA firm
2. Introducing the Account Success Formula
- Subscription-based model with unlimited access to the accountant
- Four Planning Pillars to understand clients' business plan, wealth plan, retirement plan, and estate plan
- Tax advice designed based on client's Four Planning Pillars
- Both clients and accountants love the new model
3. Collaboration and Creating Value for Clients
- Collaboration and communication between professionals is crucial
- Focus on creating value for the client instead of billing hourly
- Shift towards creating value for clients
- Recognizing the value that others can bring to clients
- Focusing on all four pillars adds value to clients
- Collaboration is misunderstood as simply passing referrals back and forth
4. Advice and Strategic Planning
- Getting advice from the wrong people can negatively impact business decisions
- Many accountants have tunnel vision and may not be equipped to give effective business advice
- Providing value is the goal rather than simply offering typical advice
- Clients want a trusted advisor who can help with important business ventures and expansions
- The tax advice that most business owners receive is incomplete
5. Speaker's Journey and the Future of MBA Chartered Professional Accountants
- The speaker worked in a traditional accounting practice for 18 years and was eventually made partner
- Partnership collapsed and the speaker started their own accounting practice
- Sold their own practice and wrote a book to help other accountants
- The speaker emphasizes the importance of passion, purpose, and profit in a new venture
- Joined MBA Chartered Professional Accountants as a strategic advisor, became a principal, and now owns a third of the company
- MBA wants to create a national firm across Canada and impact 15,000 business owners
- The speaker is not trying to bash accountants, but highlight the problem with the business model.