JJ Burns & Company

1. JJ Burns & Company Elon University Presentation

2. Who Is JJ Burns and Why Is He Talking to Us? • Started out at a CPA firm, just like you • Firm had no marketing/business development plans – just like yours? • Realized the importance of client acquisition program • Successfully created one at JJ Burns & Company: A Case Story

3. Challenges Facing 21st Century CPAs • Continually emerging digital disruption • Decreasing pool for attracting top talent • No marketing, referral or client acquisition plans • No written ownership transition or exit strategy • No diversified revenue streams for business • No niche focus to allow firm to stand out

4. Expanded Opportunities for 21st Century CPAs • Merge with or acquire other firms • Select from growing product/ service choices • Explore increasing entrepreneurial options (niche focus, diversify, micro-target)

5. How to Be Chosen—and Retained—Over Competitors • Deliver a uniquely excellent client experience • Personalize client communications • Offer a convenient, service-rich client portal • Increase “stickiness” of client relationships • Case in point: intangible asset accounting

6. How to Break Out of the Quantitative Bubble • Look beyond the numbers • Consider clients’ dreams, goals and families • Tailor comprehensive solutions • Approach each client on a personal, human level • What are they about? • What are their needs? • Know and communicate your value differentiators

7. Making the Case for Collaboration: New Tax Code Section 199A • 20% deduction for non-corporate taxpayers against qualified business income • Many levels of complexity requiring planning to minimize new tax impacts • Accountant/advisor collaboration produces benefits for all • Accountants interpret/apply new tax rules • Advisors help clients plan to reduce tax burden • Clients mitigate loss and/or realize gains • Eligible Taxpayers • Owners of sole proprietorships (Schedule C) • Sole owners (or TIC owners) of rental real estate (Schedule E) • S-Corporation owners (Form 1120S) • Partnership owners (Form 1065)

8. 199A – Many Options to Help Clients Minimize Taxes: All Require Planning • Use spin outs or mergers for deduction management • Separate service from non-service businesses • Strategically spin out real properties • Recapitalize businesses for deduction management • Shift leverage to service businesses • Decrease taxable income • Buy tax-free bonds, life insurance and annuities • Invest in real estate and/or oil and gas • Make charitable gifts (including CRTs) • Establish trusts per qualifying guidelines • Increase W-2 wage payments • Become an S-corporation and pay wages • Raise employee wages and salaries • Hire employees instead of contractors • Increase business income • Reduce total financial leverage • Purchase leased equipment and real estate • Acquire more qualified property • Purchase leased equipment and real estate

9. 199A – Establishing Trusts to Reduce Income Takes Sophisticated Planning • Capture 199A deduction available to trusts/estates and beneficiaries • Set up completed gift trusts per qualifying tax code guidelines • Conventional estate (tax) planning • Property usually not included in benefactor’s estate • Independent of special provisions in state trust code • Create incomplete gift trusts per qualifying tax code guidelines • Income tax and asset protection planning • Property usually included in benefactor’s estate (Basis adjustment calculated at death) • Some states require trust to be formed under state law(Both types create an additional Section 199A taxpayer)

10. How to Add Personal Touches that Keep Clients Engaged • Do more than “the books” – software can run numbers! • Initiate conversations about client needs • Bring in other professionals for added value • Identify client concerns and plan ahead – don’t just react • Set 2-3 client goals together and quantify results • Embrace leading-edge tools and technologies • Helps you document, analyze and use client data • Keeps your team informed and ready to act • Details like these create “economic glue” to differentiate your firm

11. How to Acquire New Clients and Build Your Practice • Call your clients with thoughtful questions – they’ll appreciate it! • Generate new ideas/opportunities for serving clients • New client referrals often come from conversations • Set aside time for networking and face-to-face interactions • Make time to build an action plan for acquiring/retaining clients

12. How to Expand Through a Network of Collaborative Advisors • Grow your contacts through a joint service model • Align with natural allies serving your prospects • Referrals to/from non-competing professionals • Target advisors with clients that need your expertise • Become known for your leadership and specialties • Get more work from existing clients! • Find new ways to serve clients’ complete financial lives • Consider financial, tax, and charitable planning

13. Recap: Overcome Challenges and Seize Opportunities • To grow and thrive, 21st century CPAs must be: • Nimble: respond quickly and effectively to changing demands • Differentiated: deliver an exceptional, customized client experience • Tech-savvy: proficiently choose and use financial technologies • Full service: provide comprehensive solutions for clients • Networked: form alliances with non-competing professionals

14. Your Time to Talk Please ask me any questions. 538 Broadhollow Road, Suite 204Melville, NY 11747 631.390.0500www.jjburns.com