5 Reasons to Transform into a Business Advisory FirmIan McManus
Offering business advisory services doesn’t only add value to your client’s business; it increases your business’ revenue and your business’ value significantly. It also prevents you from making one of the biggest mistakes that many accountants make: competing on price alone.
The field of professional accounting has made great strides and the focus has considerably shifted over the last few years, with larger companies offering specialty accounting services. Many software companies are now creating accounting software packages so that it’s easier for people to do their own bookkeeping, as well as preliminary accounting services.
Tax software has also become readily available to individuals, and completing their own tax returns has never been easier. In fact, increasingly, only a few individuals will be seeking the help of a professional accounting firm to complete their tax returns.
Because of this shift, the demand for traditional, compliance-orientated accounting services like preparing financial statements, bookkeeping, and filing of tax returns has lessened, but there is now an increasing demand from clients for accountants who offer business advisory services.
Accountants are trusted business professionals and the high level of trust allows them to move beyond offering traditional accounting services. Offering quality work is necessary, of course, but when almost everyone else is advertising their “excellent” services, you need to be able to differentiate yourself. One way to add value to your relationships with your clients is to become a trusted business advisor which means helping the client’s team make more informed business decisions.
There are a several reasons or benefits to shift to a more proactive model of providing value-added advisory services.
1. Help Boost Your Relationships with Clients
If you help a client improve the performance of their business, they become loyal to you, often for life. The higher the level of service provided, the deeper the relationship with a client becomes and this often leads to word-of-mouth referrals.
2. Transforming into a Business Advisory Firm Increases Revenue
Value-added advisory services can help produce additional income streams; it’s more profitable than providing traditional, compliance-based accounting services alone. Clients are more willing to pay extra for a high level advisory service
3. There’s No Price Competition
Accounting firms that help clients earn more or achieve a higher profit, can justify higher rates. Therefore, start helping your clients achieve their goals and then you can demand the rates you deserve. If you consistently present a high level of service you’ll acquire more “A-List” clients.
4. Offering Advisory Services Helps You Stay Ahead of the Competition
Accountants are operating in a highly-competitive market. So what must an accounting firm do in order to stay ahead of the competition and command higher rates? The answer is to make yourself a good and trusted advisor; in this way, you’ll get more clients and referrals.
5. Advisory Services Help You Generate More Referrals and a Consistent Income
Accounting firms who provide a high level of advisory service are more likely to help clients build a successful business. And clients with successful businesses are likely to be happy and satisfied clients who recommend your firm’s work to business associates, which means a steady and more stable flow of revenue for your accounting firm.