november2021 - 13

FROM THE TRENCHES
tions about me and my new business.
Then you'd advise me whether it
should be formed as a sole proprietor,
partnership, an LLC, a Sub S-Corp,
or C-Corp.
Once that decision was made,
we'd talk about all the regulatory
requirements, and then we'd move
on to the year-end, compliance
documentation requirements, and so
on. And you'd want to know what my
plans are. Where will it operate, what
are my sales and profit aspirations,
and will I employ people? And all this
time, you are advising me. And then
there would be my personal affairs
and how these interact with the new
business.
Salaries, bonuses, dividends,
will family members be involved
and what this means. Do I own my
own home, is there a mortgage,
other sources of income, and so on?
And all this time, you are advising
me-advice, advice, advice.
So, when you hear or read something
about accountants not really
" doing advisory, " take it with a grain
of salt. However, the advisory services
outlined above are very reactive, ad
hoc, and unstructured. Further, as
stated earlier, the advisory services
are often not recognized and rarely
charged for appropriately.
The choice is yours - you can
carry on the way you are. Or if you
can begin to build more structure into
how you deliver advisory services,
which can provide your clients with
proactive help and advice and generate
more fees for you. There is no right
and wrong - it is up to you.
Part of the confusion about Advisory
is that few firms are clear about
what it is. A good starting point is to
put ourselves in our clients' shoes.
What are they looking for, and what
does it mean to them? Well, you
don't walk up to a client and say, " do
you want some advisory services? "
Advisory is intrinsic to us as advisers,
not something you overtly sell
Here is a great definition of Advisory
- simple but powerful: Advisory
for clients is about helping them do
better. Each individual client's own
definition of " doing better " is personal
to them. Advisory is helping them do
better. It's that simple.
To do better might mean build a
bigger and more profitable
business. Alternatively,
to do better
might be to maintain the
current level of business
performance but not
work as many hours.
Finally, to do better
might be to build a fund
to put down a deposit
on a house, education
for their children, or a
combination of all these
and many others.
So Advisory starts
with the clients' dreams,
goals, aspirations - their
vision - in other words,
what " do better " means
to them. Once you have
helped a client be really
clear about this, you can
begin to help them plan
to achieve their vision. These are your
primary advisory services. And don't
forget you are helping them with
their personal aspirations as well
as their business goals - personal
and business.
The planning process will help
the client and you identify which
areas of their personal affairs and
business require focus and attention
and, therefore, the services
they need from you and others. The
services beyond planning that you
then choose to provide yourself are
your secondary advisory services.
These will often include tax advice,
financial and management reporting,
and many others. Your tertiary
services are the services you choose
not to provide but that you can refer
to others. These will often include
marketing, HR, financial and legal
services.
You are in control. The services
you provide are your choice. Some
firms provide specialist tax advice
such as Research and Development
credits, which would be a secondary
service. Some firms choose not to
do so but can introduce a specialist
Research and Development provider,
and this is delivered as a tertiary
service.
CHOOSING ADVISORY
AS YOUR CONTINUOUS
EDUCATION
Ignore the background noise and
confusion about Advisory.
■ Take what the " I'm not your typical
accountant " group is saying with a
grain of salt
■ Accountants are all " doing advisory, "
but they have a choice
■ Follow the ad hoc, unstructured,
reactive, and often unrecognized
path OR
Begin to build structure and
process and be more proactive and
create real value for your clients and
yourself.
■ Help clients do better
■ Help clients be very clear about
NOVEMBER 2021 ■ www.CPAPracticeAdvisor.com
13
what is important to them
■ Help clients improve their personal
positions and their businesses
■ Help clients put their personal and
business plans together
The planning process will reveal
what services the client needs.
■ You decide which services you want
to provide
■ You can refer others to provide the
services you don't want to provide
■ Use the Primary/Secondary/Tertiary
Model
■ The client's plans will be the focus
for the client relationship and create
a central relevance for how you
deliver recognizable value
And finally, just as you have
delivery platforms for your compliance
services, you need a delivery
platform for your advisory services
to give you consistency and quality
control and the ability to leverage and
scale - and make your life easier while
impressing the client.
WHAT SHOULD YOUR
CLIENT EXPERIENCE BE
WITH YOUR CONTINUOUS
EDUCATION?
Your team will become greater
experts. Their skills will grow in all
areas of focus. Satisfaction with your
firm and value should increase. You
are more likely to avoid the great
resignation and lose people because
they believe they are taken for
granted and undervalued.
Clients should be able to recognize
your increased expertise and
focus on their needs. They should
quickly understand that you have
their best interests in mind while
providing superior service. You will
have the techniques to support your
strategies. Clients should also see
greater value in your expertise and
be willing to pay for it too. ■
http://www.CPAPracticeAdvisor.com
november2021

Table of Contents for the Digital Edition of november2021
