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Accounting trends based on the recent ADP Research Institute survey.
According to an ADP Research Institute Study, 90 % of SME owners are interested in advisory or consulting services from their accountant. Yet more than 50% admit they are not fully utilizing their accountants for the breadth of services and insights they can offer.
Several recent studies highlight the evolving role of accountants as trusted advisors to small and medium-sized enterprises (SMEs):
ADP Research Institute Study According to a 2024 ADP survey, 90% of business clients are interested in at least one advisory or consulting service from their accountant. However, more than half acknowledge they are not fully utilizing their accountants for the breadth of services and insights they can offer.
OnPay's 2024 Accounting Outlook and Report A survey of over 1,000 accounting professionals indicates that Accounting Firms are expanding their services and leveraging technology to meet client needs, underscoring the importance of advisory roles in driving practice growth.
Intuit QuickBooks Accountant Technology Survey This 2024 survey reveals that accountants are increasingly investing in technology, with over 50% planning to adopt AI, automation tools, and machine learning in the coming year, enhancing their ability to provide strategic advisory services.
These insights underscore the growing expectation for accountants to serve as strategic partners, offering advisory services that extend beyond traditional bookkeeping.
Small- and medium-sized business owners (SMBOs) are busy. They're hiring employees, creating a business strategy, and keeping customers and clients happy. With all that to manage, it's no surprise that SMBOs traditionally reach out to accountants only once or twice a year to schedule an annual audit or file tax returns.
But this relationship is changing. While traditional accounting services remain the foundation of small business accountant services, today's SMBOs want more.
According to an ADP survey, 90 percent of business clients are interested in advisory or consulting services from their accountant. Yet more than 50% admit they are not fully utilizing their accountants for the breadth of services and insights they can offer.
Automation can free up 99% of accountants' time, allowing them to focus on valuable advisory services. The evolving role of the accountant.
Traditional accounting services focus on transactions and compliance, such as preparing financial statements and tax returns. These services are and will be, necessary to help SMBOs comply with tax laws and financial reporting requirements.
Clients turn to their accountants as trusted advisors to help them navigate uncertainty and prepare for whatever is next. This swift from a compliance-focused role to an advisor is a win-win for accountants and their clients as these services can help ensure the survival and growth of small and mid-size businesses while providing new revenue streams for accountants.
According to a recent study by the ADP Research Institute, 78 % of accounting professionals said they need to move beyond traditional accounting services to survive. When ADP asked SMEs what services they wanted from their accountants, 62 % said advisory and consulting services.
Automation frees up time for business growth.
The good news is that integrating technology into accounting services has been a game-changer. It has accelerated the ways accounting professionals can broaden their suite of services and expand into advisory work. What's held most accountants back from offering these services isn't a lack of expertise but a lack of capacity. It's tough to find time to dig deep with clients when they're continuously pushing to meet the next deadline.
Today, accountants can automate time-consuming routine tasks, freeing time to focus on providing value-added services and making a bigger impact on their clients' businesses. The right mix of tools, technology, and support builds an infrastructure for firms to thrive in their consultative practice.
The accountant's perspective.
The transition to offering a broader range of services can be challenging, particularly in terms of packaging, pricing, and internal training. However, clear communication and a strategic approach to service model transformation can help overcome these challenges.
For accountants, the biggest challenge is often moving away from billable hours to a value-based pricing model. It's simply not feasible to charge by the hour for advisory services.
If a client asks for advice on investment and tax benefits, and you save them EUR 40,000 in a 20-minute phone call, is that advice truly only worth one-third of your hourly billing rate? Even the client would likely agree it's worth much more.
Get a clear understanding of the services you can offer, and package and price them in a way that communicates your value proposition.
Often, as accountants expand their service offerings, they realize they've been offering advisory services all along and, in some instances, weren't charging for their expertise. Training and upskilling your team to align with the firm's business model is essential.
Finding the right advisor: The client's perspective
For SME owners, selecting an accountant who offers comprehensive support is crucial. Seek out accountants who are not only knowledgeable but also curious and proactive in providing insights and solutions that can elevate the business to the next level.
If you don't hear from your accountant outside of the annual tax filing or audit season, ask what else they offer. They might have a whole suite of services they haven't communicated with you. In our fast-paced world, it's OK to slow down occasionally and ensure you're getting the most out of your relationship.
Your accountant can do a lot more than handling your small business accounting and filing your taxes. If your accountant uses Riskrate, s/he'll have access to an extensive library of resources for adding value to your business, including margin, profit, and cash flow analysis, predictions and forecasts, planning, and much more. Let's talk about how we can help you optimize your processes. Book a meeting with our team here.
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