What’s Behind The Shift To Advisory Services In The Accounting Industry_.pdf

Digital transformations are happening throughout the business world, and thanks to such advancements in technology as cloud-accounting tools, AI, and automation, accounting professionals are under increasing pressure to expand the level of service they provide for their clients.

1. What’s Behind The Shift To
Advisory Services In The
Accounting Industry?

2. Digital transformations are happening throughout the business world, and
thanks to such advancements in technology as cloud-accounting tools, AI, and
automation, accounting professionals are under increasing pressure to expand
the level of service they provide for their clients.
For your accounting firm to maintain its existing client base, attract new ones,
and stay one step ahead of your competitors, you will likely need to offer
additional services. By outsourcing tax return preparation, you’re already giving
yourself a firmer foothold on the ladder to success, as you and your team have
the time to focus on higher value services that you already provide. But will this
be enough for you to guarantee profitability? Maybe not.

3. As it is, many accounting firms are turning to advisory services to be their saving
grace, but why?
Below are just some of the reasons behind the shift to advisory services for many
accounting firms:
●Advances in technology
Technological advances give employees the time and resources to focus on
high-value activities, such as offering financial advice and guidance.

4. ●Catering to new client demands
Nowadays, clients want their accountants to help them make financial decisions
that are well-informed, calculated and free from risk, so that they can achieve
their business goals.
●Meeting competition
If your accounting firm only offers traditional accounting services, you might lose
clients to those firms offering a range of financial advisory services.

5. What are some of the challenges faced by accounting firms wanting to
move to advisory services?
There are a number of barriers and challenges accounting professionals may
come up against when offering an advisory service to their clients:
●Cultural resistance
With a culture focused on compliance, transitioning to a more advisory-oriented
approach may cause concern among some firms, and a shift to their mindset and
behavior may be required.

6. ●Acquisition of talent
Advisory services call for a team with a diverse range of skills, such as business
awareness, communication, strategic thinking and relationship-building, and in
the current climate, they may not be easy to find.
●Client education
If clients don’t value advisory services, or don’t understand their value, they may
not want to invest in them; preferring to stick to traditional, compliance-based
services.

7. ●Pricing propositions
It can be difficult to determine an appropriate pricing model for advisory
services, which unlike compliance-based services, are not necessarily set around
the number of hours worked, and are instead set around a certain value.
●Tech and tools
Paramount to the successful delivery of advisory services, is the leveraging of
technology and tools, such as AI and cloud technologies; something some
accounting firms struggle to select, implement, or even afford.

8. There are certainly challenges to offering advisory services for
accounting firms, but it’s an area more and more companies are
moving towards, and with so many benefits, its easy to see why. By
taking advantage of bookkeeping outsourcing, and leveraging new
technologies, your accounting firm can offer its clients more of the
services they want, while deepening the relationship between both
parties, and perhaps most importantly, increasing revenue streams.