Proper preparation is an intricate part of the process of implementing ‘Business Advisory Services’ via an accountancy business, so as to add value to SMEs.
It is important that there is adequate training in real business situations of the accounting businesses’ accountants if there is going to be appropriate implementation of ‘Business Advisory Services’. Some of the issues to be discussed could include:
- A proper understanding of Stock Turn Rates and the implications to cashflow
- Being able to review the inventory list to prompt the client or the client’s management team to identify slow moving stock items that should be liquidated.
- Understanding of the importance of the calculation of debtors days outstanding and the necessity to suggest strategies to collect sufficient amounts of money from debtors so as to be able to operate with debtors days outstanding of around 30 days.
This work will enable the identification of ‘champions’ for both products and industries. At this stage, the firm should have identified the industries that relate to their A-class clients, so that particular emphasis can be given to training staff in the commercial realities that pertain to particular industries.
It is important that the accountant comes across to the client, not as a ‘tax return preparer’, but as a ‘commercial manager’, who understands more than the ‘profit and loss account’ for the business.
The next stage of the preparation of offering ‘Business Advisory Services’ is in the selection of services being offered in the non-compliance area for clients. It is not advisable to start with a long list of services in the first few months of offering ‘Business Advisory Services’. Why not start with three or four services where there has been adequate training for in the firm, and where firm champions have been identified in the individual products such as:
- Debtors management
- Cashflow management
- Business health check
- Selling a business
Six months later, after another series of training sessions, you could then introduce another three or four services to add to the range of services being offered to SME clients, to assist in improving the overall value of your SME clients.
ESS BIZTOOLS includes a complete series of modules in the preparation to offer ‘Business Advisory Services’, together with recommendations on the implementation of ‘Business Advisory Services’.
What Product and ESS BIZTOOLS have negotiated a 10% discount for What Product members who subscribe to ESS BIZTOOLS. To obtain this discount, please quote ‘ESS3WHA’ when completing the ESS BIZTOOLS subscription form at www.essbiztools.com.au.
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