AS A CPA, YOU LIKELY WON'T BE SURPRISED TO LEARN THAT 72% of small business owners refer to their CPA as their most valuable and trusted advisor. That's the good news. However, 76% of small business owners also believe their CPA is only reactive to their business needs. The CPA uses a tax return to tell the business owner what has already happened. That's the bad news. The reality is that small business owners want—and need—proactive guidance. A recent survey from CCH revealed (and supports the data above with a 1% variance) that clients are looking to their CPAs to provide the following services: Accounting and audit services (93% of clients) Added tax services (89% of clients) Advisory and consulting services (75% of clients) Clearly, CPA firms are not utilizing their complete potential with respect to client service, especially when it comes to providing advisory services. This leads many clients to be specifically dissatisfied with their CPA firms, according to the Wasp Barcode survey, for the following reasons: No guidance or advice is offered No pro-activeness exists Lack of education for business owners Clients do not want their CPA firms to simply handle numbers for them. Rather, they want them to help devise financial strategies that aid business growth and profitability. Here’s the thing, the need for qualified help with taxes will never go away—but the business itself sure can. Today, 64% of small business owners are worried that shaky economic conditions may contribute towards business closures, many of which can be mitigated by education and proactive planning. The shift towards also offering advisory services allows CPAs to create greater value for their clients. By leveraging their expertise and deep understanding of financial data, accountants can identify opportunities for growth, cost savings, and profitability improvements. Through strategic planning and financial analysis, they can help clients make informed decisions that drive business success. By delivering tangible value and becoming integral partners in their clients' growth journeys, accountants can foster stronger client relationships and enhance overall satisfaction. A lot of CPA firms think that they are doing this, but they are not. In reviewing the advisory services menus of the average CPA firm, those services are fairly predictable. Not that they aren't necessary, just predictable. They include the initial proactive guidance needed in choosing a business entity, compliance, QuickBooks setup...the usual “now you’re in business” services. Then there are the reactive services: compliance, payroll, bookkeeping, tax prep, audits, and consulting because there’s an imminent problem. However, remember that 75% of small business clients? The ones who are looking for proactive guidance to keep their businesses healthy and growing? The dichotomy here is a glaring opportunity for savvy CPAs. And here’s where the “find a need and fill it” success formula fits in. Small business owners want guidance. They trust their CPAs more than anyone else. The future of accounting lies beyond the traditional realms of bookkeeping and compliance. As automation takes over routine tasks, accountants are presented with a unique opportunity to transition into trusted advisors. Embracing advisory services allows accountants to provide strategic insights, guidance and value-added solutions for their small business clients. By leveraging technology, adapting to evolving roles, and focusing on skill development, accountants can play a crucial role in shaping the financial success of their clients—and their own practices. To learn more, visit davenchargroup.com. SIX-WORD Success Formula FIND A NEED AND FILL IT BY THE DAVENCHAR GROUP THE 32 Nebraska CPA
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