Explaining the power of using TaxPlan Scenarios with your advice to your clients
TaxPlan Scenarios is so powerful and the best way of explaining the value of your advice to your clients.
One of the most important things you can do to help your clients understand the value of your advice is to give them a comparison of the tax they're going to pay, compared with the tax they would have paid if they didn't receive your advice.
The best way is to give them a Scenario comparison report – TaxPlan does this easily and in just a few minutes:
- At the top of the screen is an orange tab called Base Scenario
- On that orange tab is a clickable blue box – if there's only one scenario, the box is always blue
- To copy whatever is in the Base Scenario to a new Scenario, click + (plus) (We recommend entering the basic projected information, income information and deductions into the Base Scenario without entering any tax planning strategies or distributions so you start with a clean, clear base scenario)
- Duplicate the Base Scenario and click the pencil icon to change the Scenario Name and Scenario Description, which flows into your report
Now you have the ability to make any changes to the second Scenario, compare both and clearly see the difference between the Base Scenario (with no tax strategies whatsoever) compared to your tax planning recommendations in the second Scenario (Watch a working demo here »)
How Scenarios flow into reports
Because we recommend the Scenario without tax planning strategies, to also import a recommended strategy click the little blue box at the top to include it.
To generate a report comparing the scenarios, click the green Reports button (top right), choose the middle option Scenario Comparison and click Scenario Comparison (.docx) to download your report.
A Word document will open with your firm’s logo and details on the cover. Page 1 shows the Base Scenario including taxable income, tax assessed and final tax payable.
Underneath sits the second Scenario showing your tax planning strategies as well as how much tax is being saved compared to the Base Scenario.
You can have an unlimited number of scenarios — it's great to do one additional tax planning for every Scenario so clients can see how these Scenarios, and the tax planning based on the different Scenarios, builds up over time.
Remember, ensure the blue selector is active (in the tab name) as this is referenced in the report as your recommendation. So, if you have multiple scenarios, select the one that you want recommended.