With the increased commoditisation of tax compliance, accounting firms are directing attention to advisory services, particularly business development and succession planning, financial planning, risk management and transition to retirement.
To date, business advisory services in most firms have been provided in an ad hoc, relatively inefficient manner. The development of specific
systems and procedures supported by relevant staff training is essential for the growth of business advisory services in accounting firms.
Outlined below are key elements of a successful business advisory platform. With your firm, consider how you perform in relation to these elements … what is working well, what needs to be developed.
No | Element | Key elements |
1 | A strong service proposition | Managers are able to describe to clients what we do in relation to business advisory services. |
2 | Opportunity development process | A formal annual financial and strategic review of every business client takes place. |
3 | Lead development process | The firm has a client relationship management system in place to track client services and opportunities. |
4 | Proposal development process | The firm has a consistent approach to business services proposals. This approach utilizes a ‘menu of services’ approach, with the manager able to work with the client to identify the key services that are required or requested. |
5 | Data collection and analysis | Where possible, the firm has direct access to client financial information. A process exists to collect data in a timely and efficient manner from the client. |
6 | Reporting process | A process exists to provide relevant reports on a regular basis. |
Where possible, these reports are standardized across the firm.7Client meeting processThe firm places high emphasis on client meetings. The purpose of meetings is to present information, share ideas, provide advice, gain consensus and identify actions.8Advisory skills and behaviourThe firm retains a core group of internal and external business services specialists who are available to assist managers in providing specific advice as required.9Project reviewProgress versus agreed actions and KPIs is reviewed on a regular basis. On a regular basis, WIP versus fee is reviewed to ensure that work performed is ‘within scope’
It’s recommended that the firm reviews each element and identifies where gaps exist. A strategic plan can then be developed to address those gaps. The leadership team must be aware that the greatest challenge will be behavioural. Not all managers and accountants may be able to effectively make the transition from technician to advisor.
To Develop Your Firm’s Business Advisory Platform, Register for the upcoming Online Business Advisory Program for Accounting Firms visit www.trainingbeyondaccounting.com.au
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