Accountants have had to spend more time emotionally supporting clients, offering financial advice, and assisting them in navigating the COVID turmoils in recent years. Accountants have served as strategic consultants to clients by keeping them recognising possibilities and difficulties, analysing potential government funding, and developing a survival plan.
Accountants must adapt to the ever-changing financial world to deliver even better services and remain relevant. It’s no surprise that 70% of small business accountants expect their advising role to develop more strategically in the coming year, and 86% of small businesses consider their accountant to be their most trusted adviser.
What are accounting advisory services, and what do they entail?
Accounting advice services encompass a lot more than just balancing the books. Accounting advisory services, expressed, entail providing strategic business counsel and disclosing financial insights that impact clients’ decision-making and planning.
Clients, particularly small firms, frequently seek this sort of assistance because they lack the financial competence or finances to do so. According to a study, 60% of small company owners believe they aren’t particularly informed about accounting and money.
While the economy is improving and companies are reopening, accounting advisory services are projected to remain in demand as customers seek strategic insights into their cash flow, payroll assistance, and guidance on surviving in the “new normal.”
Accounting advisory services
Accounting advisory combines technology, connections, communication, and strategy to provide businesses with the boost to expand profitably.
Technology
Advisory accounting services rely on the processing and interpretation of huge data sets, which is best accomplished with the help of a solid technological stack. It is critical to leverage technology, such as accounting software, applications, and dashboards, to provide accurate and efficient advising services.
Accounting services are often best performed in the cloud since cloud-based accounting systems provide a more consultative connection by allowing more individuals to access real-time data, allowing for improved decision-making throughout the firm. You may use advisory services to deploy or optimise various technologies for the organisation’s advantage.
Relationship
Connection building is the initial value-add component of advisory services; it involves establishing a working relationship between a company and an accountant that goes beyond mere accounting, figure crunching, and compliance to provide well-informed financial advice.
Accountants who serve as consultants will have a thorough understanding of the company’s values, goals, customers, business model, and financials. Advisory services entail leveraging your in-depth knowledge of a company to provide advice to help them achieve better success.
Communication
This relationship is formed through dialogue. Advisory services require regular access to your accountant, whether in-house or outsourced. Constant communication is an important aspect of advising. You should always feel comfortable approaching your accountant with questions and concerns, and your accountant should bring ideas to leadership. This communication is essential for communicating a long-term financial strategy.
One of the primary reasons businesses that previously outsourced their bookkeeping and accounting services now engage an in-house accountant. As an organisation’s demands become more advisory, bringing in a senior accountant, accounting manager, senior accounting manager, or controller with extensive industry knowledge can offer the amount of real-time and focused communication that it requires.
How can accounting companies help small company owners with advice?
Most accounting companies understand how important it is to adapt current accounting services to suit changing market needs and stay competitive. Accounting advice services are one approach to meet both of these needs while also ensuring that customers are properly supported.
Here are some of the greatest methods to offer value for accountants who want to expand their services, including accounting advice.
Cash flow and budgeting
Cash flow management and analysis are two of the most prevalent forms of consulting services, which is understandable given the necessity of having sufficient funds in the bank. After all, cash flow is a company’s lifeblood.
Small firms frequently face cash flow issues. According to research, poor cash flow has left 1 in 7 small firms unable to pay staff and 38% unable to pay debts.
Accountants can help small company owners solve this problem by forecasting incoming revenue and outgoing costs and developing a sound budget.
Once the budget has been established, accountants may use their knowledge and experience to track cash flow and detect potential problems so that customers can plan accordingly.
Planning for retirement
It’s easy for small companies to forget about investing for the future when they’re focused on developing their business (or surviving a pandemic).
Accountants should assist small company owners in understanding the short and long game to plan for a comfortable retirement. Small company owners should calculate how much money they’ll need to maintain their current lifestyle in retirement and create a pension plan to help them achieve this objective.
Keep your clients informed and up to date by educating them.
Accountants are uniquely positioned to assist small company owners in better understanding their finances, making informed financial decisions, and developing strategic financial goals. Whether by sharing a relevant blog piece or industry insights, educating your customers should be an important element of advising services.
Client education necessitates accountants to stay current and hone their abilities. Providing accounting consulting services, after all, necessitates a thorough understanding of your client’s finances, industry, and future market developments.
Crisis management
Enterprises, particularly small businesses, require contingency plans to deal with anticipated and unexpected issues. That was never clearer than in the previous year when many companies were caught off guard and lacked the essential cash reserves to survive.
Accountants have played a critical role in keeping businesses viable throughout lockdowns, government restrictions, and a sinking economy. Unfortunately, the epidemic is unlikely to be businesses’ final financial burden.
It’s critical for accounting advisory services to assist customers in understanding frequent issues they may encounter and developing contingency plans to weather any financial storm.
Conclusion
Future Connect urges you to get started if you’re persuaded that accounting services are the way to go. Start with one client. Assist them with their most pressing issues and go from there. If you’re not sure, inquire about what they’re worried about.
