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Multiply Your Profits by Maturing Advisory Services

Mike Triantos
Posted by Mike Triantos on Jul 25, 2023 12:29:14 PM

What do we mean by advisory? 

Advisory, or client advisory services (CAS), are two of the biggest buzzwords in the accounting industry right now. Advisory services refer to the specialized assistance and guidance provided by accounting professionals to businesses and individuals to help them make informed financial decisions and improve their overall financial health. These services go beyond traditional accounting functions such as bookkeeping and tax preparation and focus on strategic and consultative aspects of financial management. 

The CAS 2.0 methodology represents a comprehensive strategy for business transformation and change management. Firms are empowered to provide high-value services, offering strategic, insightful, and transformative solutions to their clients through a technology-driven service delivery model. This shift is beneficial to both the firm providing the service and the business on the receiving end.  

FP&A services 

Financial planning and analysis (FP&A) is a strategic finance function within an organization that focuses on a set of four activities that support an organization's financial health. Instead of focusing on what has happened in traditional accounting, FP&A focuses on what is going to happen through planning and budgeting, forecasting and modeling, integrated financial planning, and management and performance reporting. FP&A professionals analyze financial data, develop financial plans and projections, and provide insights and recommendations to help organizations achieve their financial goals.  

For your clients 

Business owners need more than backward-looking accounting. They recognize the importance of understanding their current financial position and forward-looking projections, but they do not have the skills or knowledge to understand all the numbers in all the reports. They want to spend time running their business efficiently and maximizing profits. 

The implementation of FP&A is crucial for businesses aiming to expand and thrive in today's competitive landscape. Hiring an expert to guide them through the data will help them understand the current state of business in relation to their overall goals and objectives. Giving them clear direction and insight into the future helps them effectively navigate the unpredictable nature of business and maintain a competitive advantage.  

Expert advice and suggestions will help them maximize profits and achieve their goals. By utilizing your expertise and recommendations, businesses can identify areas for improvement and foster opportunities for growth with strategic planning. With this information, they can enhance operational efficiency, mitigate and manage risks, and optimize processes to reduce costs. Overall, FP&A serves as a bridge between financial data and strategic decision-making within an organization. It enables businesses to plan, analyze, and optimize their financial performance, aligning financial goals with overall business objectives. 

For your firm 

Firms should capitalize on this demand by providing FP&A services to their clients. Leveraging the opportunity to meet their needs and enhance their overall financial management is also beneficial to your firm. Not only will you strengthen the relationships you have with your current clients, but you’ll also have a significant competitive advantage for potential clients. It’s a massive opportunity for growth in your firm and an increase in revenue. If your accounting firm is not currently offering advisory services, now is the time to consider integrating them into your offerings. 

Making the shift to high-value advisory in accounting requires careful planning and implementation. Here are six points to consider. 

Commit to the vision: Embracing the long-term benefits and remaining dedicated to the vision is essential for success. 

Start with simple planning: Begin the journey by focusing on basic planning before progressing to more advanced techniques in Financial Planning and Analysis (FP&A) advisory. 

Leverage technology: Utilize technology tools to streamline and standardize the FP&A process, enhancing efficiency and accuracy. 

Identify initial clients: Prioritize identifying a select group of clients to offer advisory services to before making it a broader offering. Think about growth trajectory, business sophistication, revenue range, owner alignment, management structure, and data hygiene, and key client attributes for FP&A services. 

Understand staff roles: Clearly define the roles and responsibilities of your staff members. At inception, practice roles will be dedicated to 1-2 team members; in expansion, roles become specialized as the practice begins adding new clients and expanding revenue; at scale, firms move to specialized roles for seamless client interaction with revenue and margin targets. Planning ahead ensures smooth implementation and growth. 

Package and price your services: Develop well-defined subscription packages and establish appropriate pricing structures that align with the value delivered to clients. This model is easy to budget and predict, efficient to deliver, and the monthly annuity will build the firm’s value. 

Transitioning to high-value advisory services requires a mindset shift, ongoing investment in expertise and technology, and a commitment to delivering exceptional value to clients. By considering these points, accounting firms can effectively navigate the transition to high-value advisory and maximize its benefits. 

Multiply profits with maturing advisory services 

Advisory services play a vital role in profit maximization for businesses by providing strategic guidance, identifying growth opportunities, managing risks, and optimizing financial performance. By embracing this evolution, accounting firms can not only enhance their own profitability but also multiply the profits of their clients.  

Through comprehensive financial planning, insightful analysis, and forward-looking projections, maturing advisory services empower accounting firms to offer high-value solutions that drive business growth, differentiation, and a competitive advantage. As the demand for strategic financial guidance continues to rise, accounting firms that seize the opportunity to provide maturing advisory services position themselves as trusted advisors, contributing to their own success and that of their clients. 

Topics: Financial Advisory


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