“CPAs are starting to use this ‘Reward Program’ for their clients and Romo Incentives Group will help you implement it.”

Starbucks, Chipotle, Target… they all have them. They’re a key driver of business, and nowadays it’s something customers expect to see in the companies they engage with. You guessed it — rewards programs. Rewards programs haven’t always persisted in the business world, but the underlying idea is as old as it is wise. Businesses should reward or incentivize their customers to continue conducting business with them because if they do not, they risk losing their customers to competitors.

In the financial services industry, rewards typically manifest themselves in the form of time spent or discounted fees. However, these “rewards” are ineffective for CPA firms. Dedicating more time to certain clients isn’t necessarily a choice the CPA can make because typically the time spent on a client is directly proportional to their complexity, and, because CPAs bill by the hour, the more time spent on a client the more they are charged. Additionally, if CPAs go too far with competing for clients by decreasing their hourly rates then they will suffer a “race to the bottom” which the wealth management and brokerage industries have been facing for years. So, how else can a CPA reward their loyal clients and incentivize them to stay? Well, finding new ways to reduce their tax liabilities and improve cash flow seems like a good bet.

I know what you’re thinking, “Well, Graham, if it was that easy then none of my clients would be paying taxes!” Yes, I may have stated the solution too simply, but, regardless, there are ways to reduce your client’s tax liabilities that many CPAs do not take advantage of. The most notable of which are Research and Development Tax Credits.

These credits used to only be available to companies who were essentially inventing a patentable product, but the credit has undergone so many evolutions that that definition is now almost unrecognizable. The credit has been redefined to include essentially any research a company has done to improve a process or product of their business, regardless of the product or process already being utilized or tested by a competitor. To summarize, the research only has to be new to an individual firm. This an oversimplification, but the credit can be more appropriately thought of as the “business improvement credit”. If your client is conducting any sort of research to improve quality, quantity, yield, waste, safety, efficiency etc. then there’s a good chance they can recoup a portion of those costs through the R&D Tax Credit.

It may come as a surprise, and it’s a testament to the new applications of the tax credit, but a majority of our client base comes from the agriculture, winery, and food & beverage industries. The credit can be claimed by almost any industry and not just the ones that first come to mind like technology, manufacturing, and engineering, to whom we also provide R&D Credit Studies.

All in all, enlisting our services to bring new tax savings to your clients takes up essentially fifteen minutes of your time, a few hours of your client’s time, and since our studies are primarily conducted on a contingent fee basis, your clients risk nothing by engaging our services. We earn our fees only by identifying and securing tax credits for our clients. We offer a free feasibility analysis, and all our contingent fee studies include audit defense at no additional cost. Let’s have a brief conversation about our tax credit consulting and determine if your clients can benefit.

Thank you,

Graham Honig