How many times have you sat down with a client to discuss the tax implications of buying an investment property? The answer is probably dozens, if not hundreds of times for baby boomer principals.

At the client meeting you probably provide the client with an overview of how negative gearing works including the preparation of a draft profit and loss statement based on a number of assumptions. Using the client's marginal tax rate you break the cost of ownership down to a weekly figure so they have some sort of indication regarding affordability. Sound familiar? But what do clients leave your office with and how much do you charge for the consultation?

My research suggests, in both instances, probably not much. They might get a photocopy of your scribbled notes or the draft profit and loss statement but not much else. Given the advice is generally all verbal, it devalues quickly and you probably don't invoice the client the true value of the consultation. The client walks away with very little tangible evidence of the meeting and most firms defer invoicing the consultation until they prepare the clients' personal income tax return. Not any more ...

Negative Gearing Manager lets you systematically input the property variables such as the purchase price, loan amount, mortgage rate, rental income and projected annual running costs of the property. It also provides for the non-cash items such as building allowance and depreciation. You select the preferred ownership structure (including provision for different ownership percentages) and enter each owner's current taxable income. The program then automatically generates a detailed letter of advice which embeds a number of analytical graphs and tables including the after tax cost of ownership. Attached to the letter are supporting reports including a 5 year profit and loss projection and cashflow summary.

To complement the software we have also published a 44 page booklet, The Complete Guide to Buying a Negatively Geared Property that answers all your clients' questions regarding buying, maintaining and selling a property. These booklets also serve as a marketing tool for accountants with your firm name, logo and contact details printed on the front cover. Clients will now leave the meeting with a tangible booklet that adds value to the consultation.

The software and booklet provide a systemised approach to clients buying an investment property. In addition, it offers consistency of advice and quality control so you will never under charge for the consultation again. Putting the advice in writing not only improves the value of the consultation, it is a major point of difference to other firms and reduces the risk of future litigation. The quality letter of advice, booklet and easy to understand analysis also improve the chances of future referrals. You can position the firm as a negative gearing specialist and make it one of your niche markets.