Avoiding irrelevance!
Business Advisory Services Update
In the latest episode of ESS BIZTOOLS Business Advisory Service Podcast, Andrew Geddes issued a timely warning to accountancy firms that they need to diversify – and to do it now.
“Diminished returns flowing into practices relying solely on tax compliance work are going to impact sooner rather than later”.
When Andrew Geddes speaks… Smart accountants listen.
The co-founder of the Financial Management Research Centre (FMRC) at the University of New England and the former Chair of Greencross Ltd has been a participant in the evolution of the Australian accounting industry – from a concentration on auditing, taxation and compliance to a wider range of financial matters including Business Advisory Services.
“The smart move for accountants is to transition into Business Advisory Services”, Geddes said.
To get started, accountants should carefully select an SME to undertake a “strategic review” of where their business is now, especially with respect to its financial performance (margins and cash flow) and balance sheet.
“Then identify what you need to do to improve the business… Say 2 or 3 business improvement initiatives involving the SME’s team, then preparation of budgets to be monitored against performance monthly.”
“This is the strength of accountants…predicting financial performance and goalsetting then monitoring results”!
“The other trend occurring with accountancy firms is the addition of wealth management services (financial planning, risk and finance) as a vertical add-on to tax and accounting.”
“Start small and produce top results for your clients”. “Once you do, word will spread and referrals will see more demand for your advisory services.”
Andrew Geddes concluded, “In summary… add external CFO Offerings then Financial Services to avoid irrelevance!”
ESS BIZTOOLS is committed to assisting accountants to implement Business Advisory Services for SMEs and accountancy team members. Details of our various packages and promotional offers are available at www.essbiztools.com.au.
Strategic Planning is a big issue especially in 2023/24 – it’s not too late to get started in June!
