july2021 - 5

FEATURE
EXPAND YOUR PRACTICE WITH
ADVISORY SERVICES
IF YOU'RE LOOKING for ways to expand your practice, adding advisory services
is a great place to start. When coupled with annual tax planning and preparation
services, the addition of advisory services can benefit both your clients and your
firm, offering clients a single location for all of their financial and tax preparation
needs, while providing your firm with a healthy dose of additional revenue.
Advisory services can cover a lot of ground
and can include any or all of the following:
* Tax planning and strategy
* Technology implementation and maintenance
* Financial reporting
* Cash flow forecasting
* Process automation
* Budgeting and goal tracking
* Strategic planning
* Wealth management.
Although there are other areas you can
choose to offer your clients, there are three areas
that can benefit your clients the most.
1. FINANCIAL ADVISORY SERVICES
Financial advisory services might arguably be the
most obvious services you can offer your clients.
Financial services can range from helping your
clients set up a business to assisting them with
goal and money management. For small business
clients, these services can include the following:
* Financial statement analysis: Financial statement
analysis is an important component of any
advisory service you may be offering. Your client
might be an expert attorney, architect, or retailer,
but he or she might have no direct experience
managing business finances. Analysis of financial
statements should be completed regularly in order
to gauge company financial health over time and
make any needed recommendations.
* Cash forecasts: Very different from financial
statement analysis, cash forecasts serve more as
an interactive planning tool that can guide your
client through the ups and downs of running a
business. Managing cash forecasts on a regular
basis is a must for small business owners.
* Budgets: Budget preparation is an essential part
of managing a business. As part of your financial
advisory services, you can work with your clients
to devise a budget for their small business, while
also helping them reach their goals.
* Complete accounting services: Small business
owners often find themselves in a bind. They need
someone with experience to handle accounting
and bookkeeping tasks, but they don't have
the budget to pay for a full-time bookkeeper or
accountant. Offering both new and existing clients
complete bookkeeping and accounting services on
an outsourced basis can reduce errors and help
keep your client finances on track while still being
cost-effective.
Financial services aren't just for businesses.
Many individuals face financial challenges as
well. Whether your client is going through a
divorce, expecting a first child, sending a child
to college, or considering a move to a new home,
your expertise can help your clients minimize
taxes, reduce tax liability, and save for retirement.
2. OPERATIONS ADVISORY SERVICES
Not all of the services you offer your clients
may be financial, although these services will
ultimately impact their financial well-being.
This is particularly true if you become involved
in advisory services. These services can include
assisting your clients with finding the right
software products for their business, to finding
a better way to process payroll.
By Mary
GirschBock
Operations
advisory services may also
include audit analysis of your client's current
operational structure, providing them with ways
to streamline internal processes while ensuring
that those processes are completed properly. It
can also include assisting with the creation of
a strategic plan that can help your client reach
business goals.
3. COMPLIANCE
Many new business owners may be unaware of
all of the compliance issues involved in owning
a business, from payroll tax compliance, to state
and federal labor laws. But even experienced owners
can struggle in their quest to stay knowledgeable
about all the compliance issues that business
owners face. Keeping your clients compliant with
all business regulations reduces the likelihood
of penalties and interest, while freeing them to
spend more time growing their business.
READY TO START OFFERING
ADVISORY SERVICES?
Not all firms offer all advisory services, so decide
up front which ones you'd like to add. Then you
can start contacting your existing clients to let
them know about the new services you're offering.
As an added bonus: Having a more complete
menu of service options also makes it easier to
attract new clients who are looking for more
than tax preparation. Remember to add only the
services that your firm is in a position to offer.
Concentrate on your expertise and what skills
you can offer to your clients.
Adding advisory services can take your firm
from tax compliance to a quickly becoming a
year-round service provider. Is it time to start
exploring the possibilities? ■
JULY 2021 ■ www.CPAPracticeAdvisor.com
5
http://www.CPAPracticeAdvisor.com
july2021

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