RIAs prioritize tax planning and preparation as key services to attract clients. 1 in 6 firms offer tax preparation, with larger AUM firms using tax preparation software more frequently. The divide between larger and smaller firms reflects differences in scale, resources, and client demand. Clients increasingly prefer a one-stop shop for financial needs, with tax preparation being a major point of interest.

Offering tax planning and preparation services is a cornerstone for many RIAs, highlighting the importance of holistic financial professionals. While larger firms handle tax preparation in-house, some cases require collaboration with specialized CPA firms. The industry trend towards holistic planning is evident, but clients still rely on a mix of professionals for their financial needs.

Despite the industry push towards holistic planning, not all clients prefer a one-stop shop approach. Some clients already have tax preparers or prefer to handle it themselves. Advisors like Patrick Huey are prepared for client preferences to change, recognizing the evolving landscape of the financial planning industry. Huey anticipates clients may eventually seek integrated tax services from their advisors.

Read more at Yahoo Finance: RIAs are undergoing a tax prep schism: Here’s why