TaxPlan Scenarios are incredibly powerful and the best way to explain 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 to do this is to provide them with a Scenario Comparison Report – TaxPlan makes this easy and quick:
Base Scenario:
At the top of the screen is a tab called Base Scenario.
Beneath tab is a clickable blue toggle.
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 and Edit:
Duplicate the Base Scenario and click the pencil icon to change the Scenario Name and Scenario Description, which flows into your report.
Now you can make any changes to the second Scenario, compare both, and clearly see the difference between the Base Scenario (with no tax strategies whatsoever) and your tax planning recommendations in the second Scenario.
How scenarios flow into reports
To generate a report comparing the scenarios, click the Reports button (top right) and choose the Scenario Comparison option. The download will begin automatically.
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, build up over time.