The Woodard Report

Advisory for e-Commerce Clients: A Value-Driven Approach

Written by Rachel Dauchy | Nov 6, 2024 7:40:34 PM

In recent years, advisory services have become the buzzword in the accounting industry. Whether it’s referred to as CAS (Client Advisory Services) or simply advisory, the conversation around offering more than just traditional accounting services is growing louder. For eCommerce accountants, this shift represents an exciting opportunity to expand your service offerings and provide ongoing value to your clients. Advisory services allow you to go beyond bookkeeping and compliance, and become a key strategic partner in your clients' businesses. Let's delve into why adding advisory services for e-Commerce clients is a smart move and how it can create long-term, mutually beneficial relationships. 

Why advisory is important for e-Commerce accountants 

As e-Commerce accountants, we’re already familiar with the complexity of the industry. From sales across multiple platforms to fluctuating sales tax thresholds, our clients are navigating a constantly changing landscape. The role of the e-Commerce accountant is not just about recording transactions and reconciling accounts. It's about understanding the client's entire business model, the platforms they sell on, and the challenges they face. Adding advisory services into the mix allows us to provide deeper insights, guide our clients through pivotal moments, and offer strategic advice that can make or break their business success. 

For many accountants, advisory can feel like an intimidating leap. We hear terms like “data-driven decision-making” or “forecasting,” and it may sound more suited to corporate finance than small business e-Commerce. But that’s the beauty of it—advisory services in e-Commerce can be tailored to each client’s needs, focusing on what truly matters to their bottom line. And now is the perfect time to consider offering this kind of service, especially with the holiday season approaching. 

The holiday season: A key moment for advisory services 

The holiday season, spanning from October through December, is one of the most important times for e-Commerce businesses. Clients often experience a surge in transactions during this period, with sales for Black Friday, Cyber Monday and other holiday shopping events. It’s a make-or-break period for many online sellers, and this is where advisory services can shine. 

Imagine guiding your clients through this chaotic season with data-driven insights. You can help them strategize around discounts, inventory levels and pricing, ensuring they are well-prepared for the influx of orders. Sales tax compliance across multiple states and platforms is another critical factor; as their trusted advisor, you can monitor their sales and ensure they’re collecting and remitting the correct amount of tax, avoiding costly penalties. 

By advising clients on when to run promotions, identifying which sales days are historically the most profitable, and leveraging platform-specific features, you can provide invaluable insights that directly affect their revenue. These strategic conversations not only help your clients but also strengthen your role as a trusted advisor, elevating the relationship beyond monthly bookkeeping. 

Data-driven decision making for e-Commerce success 

One of the most powerful aspects of advisory services is the ability to use data to inform decision-making. As accountants, we already deal with financial data daily but leveraging it to provide actionable insights is where advisory excels. For e-Commerce clients, you can use key metrics like sales trends, inventory turnover, customer acquisition costs and return rates to guide their strategy. 

For example, analyzing historical sales data helps clients predict which products will be in high demand during the holiday season, allowing them to stock adequately. If a particular platform or marketplace outperforms others, you can recommend shifting more resources towards it. Or, if fulfillment bottlenecks arise, you can suggest operational improvements. This level of service shows your clients that you're not just crunching numbersyou’re actively growing their business. 

Recurring advisory services: A game-changer for both you and your clients 

Adding advisory services is not just about providing one-off consultations or recommendations. It’s about creating an ongoing relationship where you continually provide insights and advice throughout the year. One of the best ways to structure this is by offering recurring, billed advisory services as part of a client’s regular engagement. This ensures that you are regularly checking in with them, reviewing their financial health, and helping them stay on track with their goals. 

For your clients, this creates a more stable and reliable partnership. They know they can rely on you for guidance, whether it’s during the busy holiday season or during quieter periods when they need to plan for the future. For you, it means more predictable revenue and a deeper connection with your clients. It turns a transactional relationship into a long-term partnership. 

The value-add for your firm 

Adding advisory services to your e-Commerce accounting firm is not only beneficial for your clients but also for you. First and foremost, it differentiates you from other accountants who may only offer traditional services like bookkeeping and tax preparation. In a competitive market, providing advisory services sets you apart as a forward-thinking, value-driven firm. 

Plus, advisory services can command higher fees than traditional accounting services because they offer a higher level of expertise and insight. Clients are often willing to pay a premium for this type of advice, especially if they see the direct impact it has on their business growth and profitability. It also opens the door to additional services like forecasting, budgeting and cash flow management, further increasing the value you provide to clients. 

Start small, then grow 

If you’re new to advisory services or feel overwhelmed by the thought of adding this to your service offering, don’t worry. Start small. You don’t need to dive into full-blown advisory engagements right away. Begin by offering advisory services to one or two clients, perhaps during a busy period like the holidays, and see how it goes. Once you get comfortable with the process and see the value it brings, you can expand your offerings. 

The key is to listen to your clients, understand their needs, and provide solutions that align with their goals. As you build confidence, you can start offering more complex advisory services, such as financial forecasting or inventory management strategies. Remember, your clients will appreciate any additional insights you can provide that help them grow their business and navigate the complexities of e-Commerce. 

Advisory services as a growth opportunity 

Advisory services are no longer a “nice to have” for accountants; they’re becoming a must-have, especially in the fast-paced world of e-Commerce. By offering strategic advice and data-driven insights, you can help your clients optimize their business during key times like the holiday season while creating long-term value for both them and your firm. As an e-Commerce accountant, consider how adding advisory services can enhance your practice, deepen client relationships, and position your firm as a leader in the industry. 

So, as you prepare for the busy months ahead, think about the role you want to play in your clients’ success. By adding advisory services to your offerings, you can become their trusted partner, helping them navigate the challenges of e-Commerce and capitalize on every opportunity.