What really is ‘Advisory’? With so much debate, the profession needs a more uniformed definition to build upon.
“When I think about advisory, it is a long term approach which is forward-looking, service-oriented and centered around helping clients achieve their goals and dreams,”
Advancements in technology, an influx of data, and a rise in client expectations, see a growing number of accounting firms evolving to proactively and strategically put more of an emphasis on the “advisor” in “trusted advisor.”
Is your firm among them? If not, should it be?
“Advisory is a holistic approach to business transformation and change management. Firms need to efficiently provide ‘next-level advisory services’. It lets firms stand out with more strategic, insightful and transformative services clients are — or will be — looking for.”
Over the past 5 years since forming Risk Dashboard, I’ve seen accounting firms building client websites, and offering services such as Cyber Security, HR and Health & Safety and much more for their clients.
Why? Because these are the services their clients need besides the traditional compliance work.
Advisory requires a firm to know something about their clients, requiring a different skillset and approach than most firms have adopted in the past.
Simply put. Getting all of the information, all the data, all the insights into their clients so that they can go from being a reactive, to a proactive firm, which is leveraging data and insights to actually proactively advise.
Why is it so important for accounting firms to move toward more high-value advisory services?
There are two reasons.
- Accounting firms understand their clients’ fiscal and strategic landscape better than anyone else. They are uniquely well-positioned to deliver insights and services to fit the needs of each individual client.
- I believe that moving towards a more consultative approach is the key to maximizing firm profitability, now and in the future. The future will reward long-term strategic client relationships, rather than simply tactical execution.
Building a successful advisory practice also means determining the right services to provide your clients. Keep in mind that this means providing the services your clients really want — not just the services you assume they want.
In aligning client needs with your firm’s appetite (and ability) for growth, your existing offerings, especially your employee interests, will deliver potential areas for expansion.
I believe client advisory services or CAS, you should focus on providing advisory accounting rather than the compliance-heavy lifting that generally characterises the accounting profession.
Cloud-technology solutions such as Risk Dashboard help firms to deliver real-time information via dashboards to clients, giving them more visibility into information sooner and more often.
Firms have a significant opportunity to augment traditional accounting services with high-value business insights using Risk Dashboard, which ultimately drives more value for the client, and strengthens the trusted advisor relationship with them.
Find out more about putting the ‘Advisor’ in ‘Trusted Advisor’ and the value in advisory in Part.2 of this blog next time…
As a specialist provider of analytical solutions to the accounting sector, Risk Dashboard delivers real-time evidence based continuous analysis for improved reporting and decision making for accountants, business advisors and their clients.
If you would like to know more about how Risk Dashboard can help in creating a wider ‘advisory’ solution please contact Neil Campbell, Commercial Director at Risk Dashboard on info@riskdashboard.co.uk