Ten Reasons for Expanding

Here are ten important reasons why expanding makes sense:

Reason 1: Increase your value and strengthen your relationships
Industry surveys show that clients see CPAs as trusted financial advisors. CPAs who offer financial services can therefore address a broader range of client needs.
Reason 2: Meet demand for objective advice
Today, clients are more aware of financial sales tactics than ever before. You can provide them with the professional integrity and objectivity they demand.
Reason 3: Provide one-stop service
The convenience of having financial services delivered through one source can save time and money, important factors for today's busy clients.
Reason 4: Deliver holistic planning on a continuous basis
Consolidating clients' financial lives gives you a better view of their financial picture, while the continuous planning and reviews can strengthen relationships.
Reason 5: Increase revenues and profit margins
Expansion can help you identify value-added services while controlling costs, generating recurring revenues, and increasing profitability year after year.
Reason 6: Reduce tax impact
When you better understand each client's total financial situation, you have greater ability to control income and estate taxes.
Reason 7: Increase value and create exit strategies for partners
The value of a financial services affiliate can grow into a significant asset for partners over time and become a key component of retirement cash-out strategies.
Reason 8: Generate more predictable income
Asset management and planning fees, trail commissions, and insurance renewals provide a predictable base for income growth, while recurring income enhances the valuation of partners' interests.
Reason 9: Position your firm to compete
Protect your ''traditional'' services and relationships against financial services firms encroaching on your turf, and increase client retention with periodic portfolio reviews.
Reason 10: Expand your network and support employee growth
Your network of affiliated professionals will naturally expand through collaborative ''case teamwork,'' and you'll develop challenging career paths and opportunities for employees.

Now that you have the rationale for expanding your practice, you may want to learn more about what it takes to expand successfully.

Read PAA's Keys to Success


According to AICPA, a CPA firm with $500,000 in annual billings has clients with an estimated minimum of $50 million in assets under management.

By capturing only a fraction of those assets, and their future growth, CPAs can generate a solid base of predictable fee-based income.