Posted by Jeffrey Feingold on 12.15.21

In a recent blog, How to Build a Viable R&D Tax Credit Niche, we described several ways to qualify those of your CPA firm clients, referral sources and prospects whose activities could qualify for the R&D tax credit. At this point, you might be wondering just how much time R&D tax credit studies will take from your other ac­tivities. Other than the initial time it takes to determine your target list, the rest of the work can be managed by your external expert—more on that in an upcoming blog.

Now that you’re convinced you can achieve firm growth by helping your clients find valuable tax credits, how do you bring your colleagues on board with you? That’s easy—demonstrate profitability! R&D tax credits are extremely profitable, more so than many traditional services.

While most of the Type 1 services your firm offers are based on a chargeable hourly rate, R&D credit services are based on results. The cost of an R&D study is directly related to the amount of savings they can provide to the client.

The best way to get your colleagues on board for building a niche is to show them the money. You can start by showing them how R&D tax credit studies can benefit their existing clients. Clients tend to appreciate it when their advisor brings something of true value to the table. When that happens, the CPA’s value rises exponentially; clients are happy; client relationships blossom; and revenue grows through increased loyalty and stronger relationships.

When we start working with a CPA firm, we often recommend running a beta study with one of their clients. After providing outstanding service, we end up with an extremely satisfied client who offers extraordinary feedback. Client perception of value is the single best way to get others on board. Other partners will find it contagious.

Once you complete the beta study and have an extremely satisfied client, your partners will see the value of the tax credit study very quickly and want the same for their own clients. A well-run R&D niche will increase partner compensation, net income and add to the firm’s bottom line.

Request a free assessment to determine qualifying R&D tax credit eligibility

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with CPAs and their business clients who may qualify for R&D tax benefits. For more information, read our e-book: A CPA's Guide to Building a Viable R&D Tax Credit Niche, contact us at 800-260-4138, or please leave us a message below.

This blog was authored by Jeffrey Feingold, founder and managing shareholder of Tax Point Advisors, Inc.