TaxPlanIQ releases pricing tool for advisory services

Tax planning software provider TaxPlanIQ released its ROI Method of Value Pricing Calculator to help firms price their advisory services based on measurable client outcomes. The solution debuted at an AICPA & CIMA event and is now available as a downloadable workbook. 

The solution features an ROI-centered pricing model that helps firms set fees based on the expected return on investment for clients, complexity of the implementation work and more. The calculator features a step-by-step approach to make it accessible to firms with little tax planning experience. 

It is also intended to help firms better explain the value of their services and just what clients are paying for and why. Unlike a traditional hourly billing model, this method focuses on the financial impact and strategic value perceived by the client upfront. By using this calculator, practitioners can demonstrate the value of their services through analyzing the cost savings and income opportunities for the client. It aims to provide clients with a better understanding of their return on investment. 

The method begins with an estimate of both cost savings and tax savings for the client. Then the practitioner can calculate a suggested price based on a desired ROI. Additional elements can be factored in such as the complexity, urgency or riskiness of the engagement, or other benefits such as concierge services or unlimited email support. Ultimately this produces an ROI report. The practitioner can walk clients through all the calculations in the report, propose a fee and then, if they agree, send them the engagement letter and invoice, and onboard them. The method allows for tiered pricing packages if the practitioner wants to include them. 

These calculations are already done automatically in the TaxPlanIQ software, but the new workbook allows people to learn the method themselves. 

"We created the ROI Method of Value Pricing Excel Calculator to help firms set profitable, client-centered pricing for advisory services," said Jackie Meyer, founder and president of TaxPlanIQ. "This tool allows firms to price with confidence and communicate value clearly."

TaxPlanIQ was included in the AICPA & CIMA's startup accelerator program last year. Participants received a $25,000 grant as well as marketplace intelligence and guidance from AICPA and CPA.com senior leaders and the program's advisory board members. Last month the company hosted a virtual summit instructing people on the ROI method.