8 Reasons Why Accountants Can Benefit from Becoming a Business Advisory ServiceIan McManus
The Accounting industry has changed its focus considerably over the last few years. As a result, large companies have started offering accounting services to smaller SMEs and software companies have been producing accounting software packages to make it easier for people and businesses to do their own bookkeeping and preliminary accounting services.
Also, tax software has become more readily available, so that individuals are able to complete their own tax returns without the help of a professional.
There are a few reasons why accountants benefit by providing a business advisory service to their clients: services like bookkeeping, filing tax returns and preparation of financial statements has lessened. Clients demand the benefits of an accountant that functions in an advisory or consulting capacity and cultivates a relationship that’s based on reliance.
1. Enhanced Client Relationships
By making the shift from providing services like tax return preparation to offering strategic business advice,such as ideas on how to increase your client’s revenue over the next few years, CPAs can develop a deeper and more meaningful relationship with each of their clients.
2. Generate More Referrals
CPA’s who provide a good business advisory service will have the best chance to lead a client’s company or business in the right direction, and clients with a successful company are often more than happy to recommend their accountant to colleagues and business associates.
3. Boost Your Brand
CPA’s who have successfully built business consulting services into a major part of their practice can use these extra services to differentiate,build and promote their brand.
4. Consistent Flow of Revenue
CPA’s who offer a business advisory role to clients throughout the year, produce a consistent flow of revenue. This is a better business practice than seeing the bulk of your revenue billed once per year or worse still, be subject to write-offs and dissatisfaction with lack of value provided.
5. Increased Income
Business advisory services produce additional income streams, and they are more profitable than traditional, compliance-based accounting services. This additional strategic advice that helps a client’s business grow is more than the core services of audit and tax preparation. Clients are willing to pay extra for special advisory services; this helps both the client and you, as you can generate extra profit on the consulting work.
6. No More 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.
7. Keep Up With the Competition
Accounting firms are now operating in a competitive market. In order to beat your competition, position yourself as a good advisor and gain more long term clients.
8. Personal Fulfillment
CPA’s who offer a high-quality business advisory service to their clients also get to enjoy the personal satisfaction that comes whenever their expertise results in a significant success for clients. The fact is that accountants can do more than tax returns and financial statements. So when you’ve helped people succeed in their own businesses, it can be very rewarding and fulfilling for you too.