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We\u2019ve all heard it before: Compliance work is dying. Accountants must move into advisory. It\u2019s a claim that\u2019s been doing the rounds for over a decade. I first started debunking the hype back in 2009. So no, it\u2019s not news \u2013 or accurate.<\/p>\n
The pace at which the perceived value of compliance work will fall has also been overstated. Despite the misleading adverts from some of the cloud bookkeeping providers, there is little evidence of small business owners reducing the level of their reliance on accountants.<\/p>\n
But still the pressure is there to offer more than generic compliance services especially when you are trying to win over new clients.<\/p>\n
It may not matter to your loyal existing clients. But if you want to future-proof your firm and attract higher-value work, advisory services need to be part of your offer to relevant clients. The challenge? Most of the guidance out there is either too generic or assumes every accountant is starting from the same place. That\u2019s rarely true.<\/p>\n
During mentoring conversations on this topic I always look for ways to tailor my advice to suite each accountant\u2019s style, experience, client base and aspirations. There is no one-size-fits-all solution.<\/p>\n
And if you\u2019re wondering where to begin, here\u2019s a useful way to view the advisory journey: a simple five-step ladder of non-compliance services. You don\u2019t have to jump to the top \u2013 nor should you. Each step builds on the last.<\/p>\n
1. Impromptu advice<\/strong> By definition, impromptu advice is not part of your regular service. If it is then you\u2019re probably giving it away which isn\u2019t ideal is it?<\/p>\n 2. Specialist advice<\/strong> An increasingly popular specialist advisory topic relates to helping clients adapt to use cloud accounting software. \u00a0 Some accountants choose to do this with only their preferred package. \u00a0Others will help clients move from manual or spreadsheet records to a choice of platforms. \u00a0Making the right choice for the client is part of the service.<\/p>\n You may actively promote your ability to provide specialist advice and charge for it separately to your recurring compliance focused services.<\/p>\n 3. Profit and financial analysis<\/strong> As cloud bookkeeping becomes the norm, this kind of analysis becomes easier and more valuable. It\u2019t typically backwards looking at what has happened but this can still provide a good base for constructive and valuable advice<\/p>\n Some accountants who regularly provide this advice to clients are surprised to learn that not all accountants do so; and some give such advice away for free as part of their annual service offering.<\/p>\n Profit analysis can be quite a basic service that unqualified staff perform. And, indeed, this is one reason why, within a few years, it will be available as standard via accounting software. In the meantime there are various packages that you can use to provide this as a valuable cost effective service to a wider range of clients than ever before.<\/p>\n 4. Profit improvement<\/strong> Used well, it can be transformational \u2013 for relevant clients and for your firm. But only if you charge accordingly and avoid the trap of undervaluing your time and expertise.<\/p>\n 5. Strategic business advice<\/strong> It requires insight, foresight and the confidence to help clients define and achieve their goals. And, yes, it\u2019s something clients do pay for \u2013 when they see its value.<\/p>\n I suggest that Strategic Business Advice (SBA) should be something that accountants offer and provide to appropriate clients on an ongoing basis. And that clients pay for this as a service quite distinct from recurring compliance work.<\/p>\n SBA involves looking to the future and applying your knowledge, skills and experience to provide personalised, relevant and compelling support, encouragement and advice to clients who have learned this is worth paying for.<\/p>\n Typically you\u2019ll do this monthly or more often for those clients who understand and appreciate that the value of your strategic advice exceeds the cost.<\/p>\n The regular provision of strategic business advice is akin to being a business mentor, coach or consultant. That\u2019s what I do when I\u2019m working 1-2-1 with accountants. Those who are on the receiving end of such a service and valuing it themselves are also learning some of the skills they will need to employ themselves.<\/p>\n I appreciate that plenty of accountants want to avoid moving into this area. That\u2019s fine, but if we look forward just a few years, this area of advice is the ONLY way accountants will be able to secure recurring fees that compensate for the reduced level of compliance fees that clients are willing to pay.<\/p>\n Clients typically only seek out accountants\u00a0 when they need help. Most commonly that help is due to the need for help in satisfying legal obligations. That may be a statutory audit, preparing and filing annual accounts, tax returns or simply responding to HMRC enquiries.<\/p>\n On the other hand \u2018advisory work\u2019 is an optional purchase, so you need to develop new skills to promote your advisory services and how clients benefit from these.<\/p>\n You won\u2019t \u201csell\u201d your way into a client\u2019s strategic thinking. You need to earn your place by asking good questions, building trust and helping clients uncover what\u2019s holding them back.<\/p>\n What are their ambitions? What are the barriers? What do they need to know that they don\u2019t? Once clients feel the value of your input, they\u2019ll want more. But you need to help them get there\u2014gently.<\/p>\n One of my clients took this advice literally. He picked one client he knew well, asked better questions, and simply listened. No pressure. No pitch. The result? A clear path to value-adding support\u2014and a deeper relationship built on trust.<\/p>\n That same accountant later told me something I\u2019ve heard from others too:<\/p>\n \u201cWhat you do when mentoring me is exactly what I need to be doing with my clients.\u201d<\/p>\n<\/blockquote>\n Exactly. That\u2019s the mindset shift. You\u2019re not just delivering advice. You\u2019re coaching, guiding, listening and getting paid for helping clients succeed.<\/p>\n You won\u2019t build up your ability to provide advisory services overnight. And, despite the regular predictions of the falling value of compliance services there\u2019s still time to catch up. At some point though the ability to provide advisory services will be the difference between a firm that thrives and one that treads water or sinks ;-(<\/p>\n If you want to start offering more valuable services, or scale what you\u2019re already doing, let\u2019s talk.<\/p>\n \ud83d\udc49 I offer 1-2-1 mentoring for accountants who want to grow their advisory work and their confidence. We\u2019ve all heard it before: Compliance work is dying. Accountants must move into advisory. It\u2019s a claim that\u2019s been doing the rounds for over a decade. I first started debunking the hype back in 2009. So no, it\u2019s not news \u2013 or accurate. The pace at which the perceived value of compliance work will fall […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[17190,36793,907,25548,11150,18718,4834,22846],"dealstore":[],"offerexpiration":[],"class_list":["post-285383","post","type-post","status-publish","format-standard","hentry","category-accounting","tag-advisory","tag-advisory-services","tag-business","tag-introduce","tag-profitable","tag-scalable","tag-services","tag-valuable"],"yoast_head":"\n
You\u2019re probably already doing this in relation to one-off or unusual transactions \u2013 such as when clients plan or make major purchases or sales of land, buildings, a business or shareholdings.
And it also includes the occasional business advice you provide either because your client asks for your view, or because you spot a need to provide some guidance.<\/p>\n
This is where you have particular expertise so that you can advise, when required, on specialist topics. For example, Capital Gains, Probate, Inheritance tax, Insolvency, Risk management or specific tax reliefs.<\/p>\n
Some accountants already include this in their core service \u2013 Though not all charge a commercial rate for this element of their service.\u00a0 I liken this work to being akin to that of an in-house financial controller.<\/p>\n
Here\u2019s where the game changes. Profit improvement advice goes beyond historical analysis. It involves forecasting, scenario planning and commercial thinking. Think Virtual FD territory. Again there\u2019s a range of software solutions that can assist here.<\/p>\n
This is the gold standard. Not the occasional business chat but structured, recurring support. Monthly or quarterly conversations. A trusted adviser role. Think mentor, coach, consultant or just very experienced FD.<\/p>\nThe real challenge: changing perceptions (yours and theirs)<\/strong><\/h4>\n
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What next?<\/strong><\/h4>\n
\ud83d\udc49 Or, come join the Sole Practice Club \u2013 a supportive, practical community of like-minded accountants building the future together.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"