What is Advisory in Accounting Firms?

Elevate Your Firm with Comprehensive Advisory Services

Author

Luke Templin
July 03, 2024

Read Time: 3:49 minutes

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Advisory services in accounting offer a spectrum of support designed to meet clients' strategic needs. Advisory services can range from tax strategy to fractional CFO work, focusing on being an indispensable strategic partner to your clients

The Role of a Coach in Advisory

Being a coach in advisory services means simplifying complex accounting concepts for business owners who might only have taken a couple of accounting courses decades ago. What seems straightforward to an accountant can be overwhelming for them. Additionally, bookkeepers and younger controllers or CFOs can often get stuck on intricate issues, needing guidance to move forward. As a coach, you provide clarity, support, and the necessary "unsticking" to ensure everyone on the team can operate efficiently and effectively.

Fractional Controller

Almost every business owner has a bookkeeper they need help managing. They know something needs to be fixed with their numbers but need help pinpointing the issue. As a fractional controller, you become the translator between the bookkeeper and the owner. This role is scalable since younger staff can handle it, and every business needs it.

Accounting Automation

I want my clients to pay more for data analysis and strategy than data input. Accounting automation can significantly streamline client operations. Putting in invoicing/AR automation is one of my favorites because speeding up cash collections can help fuel the business's future growth.

A word of caution regarding accounting automation: Clients often expect ongoing support for recommended apps, regardless of upfront agreements. This expectation can become a burden if not priced correctly. Clear communication and proper pricing from the outset are crucial to managing these expectations.

Fractional COO

Most accountants excel at operations, an area where many business owners struggle. While positioning myself as a fractional CFO, I often encounter operational issues during conversations with owners. I highlight my understanding of various business aspects such as IT, human resources, and sales. While I'm not an expert in every area, I know enough to find practical solutions. Offering fractional COO services can be a valuable addition to your firm, addressing operational challenges and enhancing overall business efficiency.

Tax Strategy

Tax strategy is an excellent complement to advisory services and an easy way to show value. I wish to dove into this skill set during my early public accounting days. I understand its high-level impact and hand it off to a trusted CPA. However, having tax strategy in-house at the accounting firms I worked for was an easy selling point. People love the concept of a one-stop shop.

Fractional CFO

This role involves helping business owners look forward. It's about strategic thinking, not just forecasting. A fractional CFO guides owners through financial decisions, acting as another strategic mind in the room.

You can operate as a fractional CFO without doing forecasting. In fact, I have surveyed around 40 CFOs in CFOLC, and over 10% of them did not do forecasting in $5M+ businesses.

The Essence of Advisory

At its core, advisory is about being a strategic partner, offering insights, and helping clients navigate complex business landscapes. Whether through tax strategies, app advisory, or fractional CFO services, it's about adding value and assisting businesses to thrive.

Advisory isn't just a service; it's a partnership. By understanding and leveraging the full spectrum of advisory services, you can position your firm as an indispensable asset to your clients.

Thanks for reading, Luke Templin!

P.S. There are two ways I can help you grow your CAS offerings when you are ready: