Imagine your regular high-school drama student, jumping out from backstage support and landing straight into the spotlight – that’s what accountants went through since the onset of the pandemic. From anonymously processing payslips to advising on changing government schemes, accountants have been the right hand of their clients as they were thrown into this complicated mix of the pandemic, CJRS*, and Brexit-related changes. Today, accountants are being considered more dependable than ever. The pandemic has brought their advisory and crisis management skills to light which has strengthened their role as trusted advisors. Earlier considered as mere number crunchers, accountants now have morphed into a one-stop solution for business and accounting problems. So, keeping in mind the changes in the accounting industry and the new evolved role of accountants – here’s an article talking about the huge spike in the demand for advisory service and how accountants can make the most of this opportunity. What Led to the Sudden Spike in Advisory Services? The onset of the pandemic pushed the entire profession to move to the cloud. Even though the use of technology and software like Sage, IRIS, Xero, BrightPay, etc. made processes efficient, it was still a steep learning curve for clients. At that moment, clients desperately looked for new kinds of advice which led to a sudden spike in the demand for advisory services. Do Clients Really Need Advice? Yes! Clients do need advice, but the concern here is – Do they need it from their accountants? According to a study by PracticeWeb, almost 61% of clients refer to their accountant as their main source of business advice and this leaves nearly 40% who get their piece of financial advice from somewhere else. Clearly, a problem that needs a fix. Here are a couple of problems that we could identify as a cause of the 40% gap. Main sources of business advice for clients Value for Money Offering advisory services as a billable product has been difficult for accountants because giving away free advice has always been a part of the job for a long time. There may be reluctance from clients who now have to pay for something they believe they used to get for free. Now, the tricky part for accountants is to position themselves as an advisor who’s worth the monthly bill themselves. The problem is a stumbling block for both parties. Since for many practices, it often gets challenging to sell advisory services because many accountants find it difficult to suddenly start charging for advice that they have been used to giving out casually over meetings and phone calls. This also adds to the risk of losing that client. And that’s why market positioning becomes of utmost importance here. The Importance of Market Positioning for Accountants You are an all-around business advisor, but do your clients know about it? The need to market your advisory services is non-negligible. Your role as an advisor needs to be marketed well to your existing and potential clients. The key here is to show your expertise and position yourself uniquely which helps you stand out from the rest of the crowd selling the same service. With that being said, the initiative to position you and your accounting firm uniquely in the market is a one-time investment – of your time & resources. What you reap is years of organic growth, brand name, and spike in client retention. So, where do you start your marketing? Let’s begin with branding. Branding is crucial to set up a unique identity that helps your clients identify you as an entity different from the rest. In a scenario where every accountant is making the same noise, it is really important to create a USP (Unique Selling Proposition) and voice it out. Here’s a trick to start with, don’t simply describe some basic features of your services on your website, instead mention what value your clients are going to get and the outcomes. Otherwise, you will end up competing on price alone which may lead to losing prospects. Your messaging should clearly define ‘your differentiating factor’ and how it can boost their growth. Once you make that the right combination of your demonstrating your high-value services and setting up your unique identity – you are all set to up your advisory game. Last but not the least, understand the importance of increasing visibility online and make sure you advertise your knowledge by speaking more. Participate in webinars, podcasts and use digital marketing channels to widen your reach. Lack of Understanding The pandemic and the recent recession propelled more and more clients to move towards advisory services. Clients look forward to their accountants playing a key role in their decision-making as long as they feel they are getting good value, but that brings into question – how do you define the value? It’s how you see it. Business owners see things from their business perspective, but accountants may sometimes overlook the client’s perspective and assume that they may already have an understanding of technical topics like cashflow statements, financial reporting, etc. This results in both of them missing out on the opportunity to receive good advice and latter to step up as an advisor. 63% of clients regret having made business decisions without speaking to their accountant first. To bridge this gap, the accountant needs to make the first move. Numbers are your strength but as advisors, it’s your job to draw a comprehensive analysis from those numbers, keeping in mind the multitude of factors affecting them. A good start would be to start speaking the language of your clients and produce business health check reports with your insights and analysis. Don’t have time for advisory? It’s time to outsource! 24 hours. One accountant. And a shedload of tasks falling off the plate. The act of balance really gets critical when accountants have to take care of both – accounting and advisory services. Advisory, being a new service, is more time-consuming as it involves frequent meetings with the clients. In such a scenario, the ideal thing to do is to hire outsourced accounting services providers and share your workload of low-margin compliance functions. Not only you get your job done, but you also achieve cost-effectiveness and better efficiency. The outsourcing partner becomes your extended team taking care of the non-core, compliance tasks, while you focus on offering those ‘value-added services’. And that’s how the benefits of accounting outsourcing help to restore the balance. It’s the Smart Ones Who Survive It’s time to evolve into a new breed of smart accountants. Unlike the traditional accountant, it’s time to work smarter and show the value of your work. Free up your time so that you can focus on providing insights your clients really value. They know what you do, but what they need to know is – How proficient you are at your job? What is the quality of your service? And if you can help them achieve their goals? And all of this happens when you communicate. So, don’t hesitate to share your expert knowledge because that’s what helps you and your clients win in the long run. How Can QXAS Help? QXAS, a market leader in outsourcing, provides tailored accountancy outsourcing services to 500+ leading accounting practices in the UK. We have over 20+ years of experience in the industry, helping firms scale and create the capacity for higher-value services such as advisory. Curious to know how our services can benefit your firm? Reach out to our experts on the contact details below. Call: +44 208-146-0808 or Email: [email protected] We would be happy to help! Book a Free Consultation We hope you enjoyed reading this blog. If you want our team to help you resolve talent gaps, reduce costs and transform your business operations, just book a call. Rishmita Aich As a Journalist turned Marketer, Rishmita has developed a unique perspective when it comes to analysing & covering the changing landscape of the accounting industry. Influenced by Andrew Sorkin and Stephanie Flanders, she aspires to deliver souhgt-after advice, fresh updates & detailed analysis of HMRC legislations through her work for accounting practices to make better, informed decisions. She has spent the last 3 years creating insightful content for accountants, and is currently most passionate about the work she is doing to educate accountants about outsourcing. Unauthorized copying or plagiarism of our content is a violation of intellectual property rights. We take such matters seriously and will pursue legal action to protect our original work. Anyone found engaging in such activities will be held accountable under applicable laws. Originally published Nov 10, 2023 04:11:26, updated Nov 17 2023 Topics: advisory, Growth, Industry, Outsourcing, practice strategy Don't forget to share this post! Most Popular QX Recognised “Leader” by IAOP, Achieves “Sustained Excellence” distinction and “All Star” award QX INSIGHTS | 2 MIN READ Leading Women in Payroll: In Conversation with Lou Gray Growth | 10 MIN READ QB Connect 2020 : 11 Experts Reveal How to Own the Future in Accounting Growth | 6 MIN READ An Accountant’s Master Guide to Payroll 2021 Industry | 4 MIN READ Pay-Roll, Camera, Action: Setting the Stage for Payroll 2021 Growth | 3 MIN READ Get a Free Strategy to Transform Your Business Operations Resolve the talent gaps, reduce costs, and improve your margins Get a Free Consultation
