Accounting and Law Firms are Preparing to Specialize in FinCEN Beneficial Ownership Reporting as a $10B Filing Services Market Launches
With the implementation of the Corporate Transparency Act, an astounding 33 million companies will be required to report their Beneficial Ownership Information (BOI) in compliance with FinCEN’s new Reporting Rule launching January 1st, 2024. Approximately 40% of these companies are anticipated to seek the expertise of law and accounting firms to ensure their adherence and complete these filings as they would with a tax return. This underscores the critical importance of software solutions like FincenFetch that replicate and enhance the roles of staff members, thereby providing an efficient and streamlined process for firms to process reports in 15 minutes rather than the expected 3 to 5 hours quoted by FinCEN. 1 Based on $800 estimates per initial report, this filing market could be as large as $10B in its first year.
An estimated 33 million companies now find themselves facing the intricacies of BOI reporting to meet the mandates of FinCEN’s rules. This results in a staggering 13.2 million companies that are expected to rely on the specialized skills of law and accounting firms to navigate the complexities of the process. Firms simply need to advertise CTA compliance services to tap into these pools of clients.
Each major metropolitan area will have more than 1 million reports filed in 2024 alone, leading to an estimated $800MM in revenues per metropolitan area to be captured by firms specializing in these filings.
To effectively capture these filings, firms need four things:
FincenFetch provides both the software and the guidance for establishing these processes at your firm.
Learn how FincenFetch can help your business streamline client acquisition and boost revenue.
Each major metropolitan area will have more than 1 million reports filed in 2024 alone, leading to an estimated $800MM in revenues per metropolitan area to be captured by firms specializing in these filings in the CTA’s first year alone. Updated reports will then provide continuous revenue in following years from CTA compliance services.
Such a considerable influx of reporting companies presents both a challenge and an opportunity for these firms. Capturing even 5% of your area’s filing volume could mean a $40M revenue opportunity in 2024 and continuous revenue from updated reports in 2025 and beyond. FincenFetch is ready to show your firm how you can process a FinCEN report accurately every 15 minutes to capture these revenues at rates over $2,000 per hour per assigned staff member.
As millions of companies embark on their reporting journey, firms need to map out strategies to handle these volumes efficiently. Some firms, recognizing the potential for growth, may opt to market these services more aggressively to tap into this vast pool of potential new clients and their reporting companies.
These firms can use FincenFetch’s staff permissions tools to assign members of the firm to roles like sending links to beneficial owners, reviewing completed reports, sending reminders, or tracking billing. Our platform builds these tools into our system through the intuitive interface you can explore in our demo.
Alternatively, established firms can assign links sent by specific staff members to be seen only by those staff members, allowing each staff member to manage their personal client pool. FincenFetch’s platform modularity supports any configuration of chosen firm operations for reporting company filings with FinCEN.
BOI reporting isn’t just about gathering data; it’s about managing the process efficiently and accurately from start to finish for each client’s reporting company. This is where software tools with nuanced staff permissions come into play. With platforms like FincenFetch, firms can assign specific roles to their team members, delineating who is responsible for sending links for new reports, reviewing submissions, or managing individual client portfolios.
Capturing even 5% of your area’s filing volume could mean a $40M revenue opportunity in 2024 and continuous revenue from updated reports in 2025 and beyond. Efficiently processing these filing volumes is possible with specialization.
Such granularity in staff permissions ensures that the process is both systematic and tailored to each reporting company’s unique needs. This mimics the layered and specialized approach that larger law and accounting firms naturally employ for growth, where different staff members have distinct responsibilities based on their expertise and the firm’s internal protocols.
The Corporate Transparency Act isn’t merely a regulatory requirement; it’s an unprecedented opportunity for firms. As millions of reporting companies grapple with the complexities of BOI reporting, firms that position themselves as specialists stand at the threshold of rapid growth.
By leveraging FincenFetch’s dedicated online platform backed by cutting-edge software tools, these firms can cater to a vast market need, ensuring that each reporting company navigates the process accurately and efficiently. FincenFetch, with its capabilities tailored for firms, can be the cornerstone of this specialization, ensuring that firms not only meet but exceed the expectations of their clientele and turn the Corporate Transparency Act into an unparalleled growth opportunity.