Revenue model
Solo CPA with 15 S-corp clients
The scenario
A solo CPA handles tax returns for 15 S-corp clients. Each client needs a defensible reasonable compensation determination annually. Without a systematic approach, the analysis varies in quality - sometimes thorough, sometimes incomplete, and rarely documented to IRS standards.
The practice impact
S-corp clients
15
BLS data points used
86M+
wage records across 6,000+ roles
IRS factors documented
All 6
in every report, automatically
Avg client FICA savings
$3,000 - $5,000
per client, per year
Defensible documentation
Every report includes methodology, data sources, geographic adjustments, and confidence scoring - audit-ready from day one.
Multi-approach analysis
Cost, Income, and Market approaches cross-validate results. Stronger than any single-method analysis.
Consistent methodology
Same rigorous process for every client, every year. No variation in quality across the practice.
Revenue model
Small firm with 50 S-corp clients
The scenario
A 3-person firm handles 50 S-corp clients. They want to add reasonable compensation as a standard advisory service with consistent, defensible quality across every engagement - regardless of which team member handles it.
The practice impact
S-corp clients
50
Valuation approaches
3
Cost, Income, Market
Geographic adjustments
Built-in
state + metro level precision
Avg client FICA savings
$3,000 - $5,000
per client, per year
Advisory gateway
Reasonable comp opens conversations about entity selection, tax planning, and payroll optimization.
Staff can deliver it
Junior staff run the analysis; partners review and advise. No specialist needed.
Annual repeat
Clients need updated analyses every year. Revenue compounds as the client base grows.
Why reasonable compensation works as a service line
Annual requirement
Every S-corp needs it yearly
Clear client value
Defensible salary = FICA savings + audit protection
Data-driven accuracy
86M+ BLS wage records, geographic precision, confidence scoring
Upsell path
Gateway to entity planning, tax strategy, payroll