Transforming Your Firm with Advisory Services: A Step-by-Step Guide
The Journey to Advisory Services: A Multi-Year Strategy for Success
Transitioning your accounting firm to include advisory services is a significant yet rewarding journey. It often takes multiple years to fully implement, requiring thorough testing and continuous refinement. Many firms already provide occasional planning advice without charging. However, the ultimate goal of advisory services is to convey to clients that ongoing guidance is invaluable, offering far more than just tax returns or sporadic advice.
Leading with Tax Advisory
1. Build Your Vision and Set Goals
Begin by outlining a clear vision and setting internal goals for your firm. This phase is an excellent opportunity to engage with fellow firm owners, listen to relevant podcasts, and read articles on transitioning to advisory services. Gathering insights from those who have firsthand experience is invaluable. This shift demands extensive planning, so equip yourself with all necessary information to make informed decisions tailored to your niche.
2. Develop Tax Planning Strategies
Once your vision is set, start developing tax planning strategies specific to your specialty. This includes client onboarding processes, internal workflow adjustments, and comprehensive tax and financial recommendations. Select a few trusted clients to pilot the new system, addressing any issues and gathering feedback. As you gain confidence in your advisory services, gradually roll them out to your broader client base. Communicate your results to clients, showcasing the tangible benefits of your enhanced services.
Creating an Effective Advisory Workflow
3. Leverage Technology for Efficiency
Technology can significantly enhance the efficiency of your advisory services. Automating administrative tasks allows you to dedicate more time to advising clients. Experiment with various tools for bookkeeping, reporting, client communication, e-signing, and more to determine what best suits your firm. The right technology will enable you to focus on providing high-value advice, helping clients achieve their financial goals.
4. Implementing New Technology
Adopting new technology is a gradual process. Take the time to find systems that integrate well with your firm's operations and meet your clients' needs. Avoid rushing this phase; a thoughtful approach ensures a balanced and effective adoption of automation tools.
Delivering Bundled Services
5. Define Clear Service Packages
To prevent confusion, offer distinct service packages for clients to choose from. This approach sets clear boundaries and allows clients to select the level of service they need. Leading firms typically offer three bundles:
Basic needs package for minimal requirements.
Standard package for the majority of clients.
Premium package for clients with extensive planning and advisory needs.
These bundles help clients visualize the services they are purchasing and understand how each package can help them achieve their goals.
6. Fair Compensation for Advisory Services
Previously, firms often provided one-off advice without charging. With advisory services, you can now be compensated fairly for your expertise. Clearly demonstrating the benefits of ongoing planning and meetings ensures clients recognize the value of investing in comprehensive financial advice.
Final Thoughts
Switching to advisory services is a long-term commitment that requires careful planning and execution. Communicate clearly with clients about the benefits and long-term value of advisory services. Utilize resources like Intuit®'s free tool, "The Path to Advisory," which offers practical advice and actionable steps from firms that have successfully transitioned.
By strategically implementing these steps, your firm can effectively transition to advisory services, enhancing client relationships and driving business growth.
Editor’s note: This article was originally published in the CPA Practice Advisor.
