As accounting firms face increasing competition and pressure to stay profitable, many are looking for ways to differentiate themselves and offer more value to their clients.
One option that has gained popularity in recent years is offering advisory services in addition to traditional accounting services.
There’s been a lot of talk about this, much of it fluff and little in the way of concrete, actionable recommendations. In this blog post, we’ll explore the difference between advisory and consulting services, discuss Renew Group’s position on the benefits of offering advisory services, and provide two case studies of how Renew firms have successfully implemented advisory services with their small business clients.
The Difference Between Advisory and Consulting Services
Before diving into the benefits of offering advisory services, it’s important to understand the difference between advisory and consulting services. While the terms are often used interchangeably, there are some key distinctions. Consulting services typically involve providing expert advice or solutions to a specific problem or challenge. Consulting engagements are often short-term and project based.
Advisory services, on the other hand, involve building a long-term relationship with a client and providing ongoing support and guidance. Advisory engagements are often focused on helping clients achieve their long-term goals and may involve services such as tax planning, cash flow forecasting, defining and monitoring key performance indicators, and succession planning.
At Renew Group, we believe that offering advisory services can be a game-changer for accounting firms, but only when done in a manner that makes sense to your business model. By providing ongoing support and guidance to clients, accounting firms can build stronger relationships and increase their value proposition.
Case Studies of Successful Implementation
To illustrate the benefits of offering advisory services, let’s take a look at two case studies of how Renew firms have successfully implemented advisory services with their small business clients.
Case Study 1: Streamlined Financial Analysis and Planning
One Renew firm worked with a small business owner who was struggling to manage finances and plan for the future. The Renew firm conducted an initial assessment of the client’s business and tax situation and made recommendations for how the business owner could better manage their cash flow and plan for the future.
The Renew firm then provided ongoing support to the business owner, checking in quarterly to ensure they were staying on track with their financial goals. As a result of this engagement, the business owner was able to better manage their finances, make more informed decisions and ultimately achieve greater profitability.
Case Study #2: Business and Tax Assessment
Another Renew firm worked with a small business client in the manufacturing industry. The client was experiencing cashflow issues and struggling to keep up with their tax obligations. The Renew firm conducted a thorough assessment of the client's business and tax situationand made recommendations to help the client get back on track. They also implemented cloud accounting software to streamline the client's bookkeeping process.
The Renew firm checks in with the client quarterly to review their progress and provide ongoing support. As a result of their work, the client has experienced increased cash flow and has a better understanding of their tax obligations.
Conclusion and Call to Action
As these case studies illustrate, offering advisory services can be a powerful way for accounting firms to differentiate themselves, build stronger relationships with their clients, and increase their profitability. However, it’s important for accounting firms to carefully consider whether offering advisory services makes sense for their business model and to approach implementation strategically.
At Renew Group, we are committed to helping our clients navigate the world of advisory services and achieve success. To learn more about how Renew Group can help your accounting firm offer advisory services and increase your profitability, you’ll find a rich library of blog articles on our website (https://www.renewgroup.com/blog). We also invite you to follow up on LinkedIn, Twitter and Instagram, where we post several times a week.
About the Author:
Colin Dunn is a co-founder of Renew Group and a leading expert in the accounting industry. With over 25 years of experience working with accounting firms of all sizes, Colin is passionate about helping firms succeed and thrive in a rapidly changing industry.
About Renew Group:
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