What is Utilization?
Utilization is a phrase you will hear in our trainings, from our National Account Managers, potentially the Client's CPA, as well as in our agreement terms.
Utilization refers to if a client can utilize, or take advantage of a benefit.
Finding a benefit is the first step of the process after a client engages us. After that step we need to ensure the client can actually take advantage of the benefit in order to ensure our best chance at client satisfaction. For each service this process can be different, and we often rely on the CPA to determine utilization (as they understand the clients tax structure, and any limitations on taking deductions or tax credits may be).
How Often is Utilization a Problem?
We check to the best of our abilities in the beginning of the process to check for utilization before beginning the production process. In most cases we can determine if a client has no utilization on the Discovery or Kick Off call. However, in some instances we determine in greater detail if a client can in fact utilize the benefit after reviewing tax documents.
Is No Utilization a "Deal Killer"?
That is up to the Client. Many programs can carry forward up to 20 years. So Clients may choose to proceed even if there is no utilization. This is much more common if the client can use part of the benefit currently and will only be carrying forward part of the benefit.