Starting the Journey: Where Advisory Really Begins

An Overview by Peter Towers

During the week, I received a call from an accountant who said something I am hearing more and more often:

“I’ve been reading your material… and I know I need to change.”

He wasn’t alone.

The Reality Most Firms Face

When I asked him about his current services, his response was typical:

✅ Annual financial statements
✅ Income tax returns
✅ Some quarterly reporting
✅ Occasional budgets (if requested)
✅ Minimal advisory

In other words…a traditional compliance-based firm.

Yet like many, he wanted to become more.
He wanted to be seen as a Key Strategic Partner.

The Gap Is Real – And It’s Significant

The Intuit QuickBooks SMB Navigator Report 2025 revealed:

✅ Only 15% of SMEs see their accountant as a Key Strategic Partner
✅ Yet 80% of accountants believe they already are

That gap is not a capability problem, It’s a delivery and positioning problem.

And more importantly – it’s a massive opportunity.

The First Step: Start at the Beginning

I told him:

“Don’t try to transform everything overnight – start with structured advisory foundations.”

This is exactly why the ESS BIZTOOLS Starter Package was created.

Not theory.
Not complexity.

A practical starting point to begin delivering advisory services immediately

Advisory Opportunity #1: Starting a Business

Every year, clients ask:

“Should I start a business?”

“Am I ready?”

Most accountants give limited guidance.

But this is a high-value advisory moment.

With the right systems, you can help clients:

✅ Assess financial readiness
✅ Understand supplier terms (often overlooked)
✅ Identify funding gaps
✅ Evaluate risk before resignation

Many business failures begin before the business even starts.

This is where you become invaluable.

Advisory Opportunity #2: Buying a Business

Here’s a common problem:

Clients seek advice after signing the contract.

At that point – your influence is limited.

But with structured advisory tools, you can:

✅ Guide due diligence
✅ Analyse financial viability
✅ Identify risks before commitment
✅ Position yourself as a decision partner – not a historian

Advisory Opportunity #3: Debtors Management

Let me ask you:

Do you calculate your clients’ debtor days?

Most firms don’t.

Yet Australia has historically had one of the worst debtor payment cultures globally.

And the impact is enormous:

✅ Cash flow pressure
✅ Increased funding requirements
✅ Business stress

With proper advisory systems, you can help clients:

✅ Implement credit approval processes
✅ Establish terms of trade
✅ Monitor debtor performance
✅ Improve cash flow predictability

This alone can transform a client’s business.

Advisory Opportunity #4: Tradies & Pricing

Many firms have tradie clients.

But very few answer this critical question:

“Are your clients charging the right rates?”

The ESS BIZTOOLS Tradies Charge-Out Rate Calculator enables you to:

✅ Factor productivity
✅ Include overhead recovery
✅ Apply correct margins
✅ Target real profitability

This is one of the fastest ways to deliver visible financial impact.

Advisory Opportunity #5: Research & Development (R&D)

One accountant told me:

“I avoid R&D – I don’t understand it.”

That’s a missed opportunity.

Because:

✅ Many SMEs are eligible
✅ Minimum threshold: $20,000 R&D spend
✅ Potential tax offsets available

Your role is not to be a scientist.

Your role is to:

✅ Guide the process
✅ Ensure documentation
✅ Support compliance and claims

This can open the door to:

✅ Innovation advisory
✅ Commercialisation support
✅ Capital raising preparation

From Compliance to the Innovation Journey

When advisory begins, something powerful happens.

Your client evolves from:

✅ Business operator
✅ Innovator
✅ Growth-focused enterprise

And your role evolves into:

Virtual CFO / Strategic Advisor

This includes:

✅ Predictive accounting
✅ Cash flow forecasting
✅ KPI monitoring
✅ Strategic decision support

The Power of Benchmarking

Through our affiliate TaxFitness, firms can access:

Benchmarking against the Top 20% of businesses

Example:

Industry COGS benchmark: 25%
Your client: 32%

That’s a 7% gap

On a $1M business:

$70,000 potential improvement
Even recovering $50,000 = major impact
Business valuation uplift: $150K–$200K

That is advisory clients will pay for.

Advisory Is Not Given – It Is Built

One of the biggest misconceptions in the profession:

“Clients will naturally buy advisory services.”

They won’t.

Advisory services are sold – not bought.

They require:

✅ Structure
✅ Confidence
✅ Systems
✅ Communication

A Systemised Pathway Forward

The ESS BIZTOOLS Starter Package provides:

✔️ Advisory frameworks from day one
✔️ Client-ready tools and templates
✔️ Monthly communication (Business Plus Newsletter)
✔️ 320+ advisory papers
✔️ Training and ongoing support

You are not starting from scratch.
You are starting with a system.

The Bigger Question

Back in 1983, the Financial Management Research Centre (FMRC) was tasked with one goal:

Help accountants deliver business advisory services.

Over 40 years later – we must ask:

Have we truly achieved that objective?

The data suggests: Not yet.

But the Opportunity Has Never Been Greater

✅ SMEs need guidance
✅ Economic conditions are uncertain
✅ Compliance is commoditised

Advisory is the future.

And the firms who act now will:

✅ Increase revenue
✅ Strengthen client relationships
✅ Differentiate in the market

Your Next Step

If you are thinking:

“I need to start – but I’m not sure how”

Then this is your moment.

FIND OUT MORE AND SUBSCRIBE HERE

Visit our website – www.essbiztools.com.au – to discover the detailed overview of the services provided by ESS BIZTOOLS. You are also welcome to contact us on 0418 190 181 or email .

Insights From Our Affiliates

Tax Planning Starts in March — Not June

Every March I ask accountants a blunt question. Have you actually started tax planning yet? Not talked about it in the office. Not sent a generic email to clients saying “tax planning season is coming.” Not told yourself you’ll deal with it in May. I mean actually started reviewing clients.

Because by March, the story of most clients’ financial year is already written. Revenue trends are clear. Profit levels are forming. In many cases you can already see which clients are heading for a large tax bill on 30 June. The numbers are already telling you the outcome. Yet many accountants still treat tax planning like a June activity. The last three weeks of the financial year suddenly become frantic. Meetings are rushed. Numbers are pulled together quickly. Strategies are discussed at the last possible moment. Then everyone calls it “tax planning.” Let’s be honest. That isn’t tax planning. That’s tax damage control.

Real tax planning starts in March and April. This is when accountants should be identifying the clients who matter most. Businesses with unusually strong profits, clients heading toward large tax liabilities, groups that may need restructuring, individuals who should maximise super contributions, and trusts where distributions need to be planned properly. These are strategic decisions. They should never be made on 25 June.

The best firms already know the 20–30% of their clients who will need tax planning this year. They identify them early. They book meetings now. They start mapping strategies months before year end.

Here’s the uncomfortable truth. If tax planning only begins in June, it isn’t advisory. It’s compliance pretending to be advisory. March is when real tax planning starts.

Not June.

More info: www.taxfitness.com.au

Make sure to use the Referral Code: ESS100 for $200 off your annual subscription.

EXPLORE TAXFITNESS AND SUBSCRIBE HERE

ESS BIZTOOLS Podcast

Advisory services can create significant value for clients, but they do not sell themselves.

In this episode of Accountants Minute Podcast, Peter Towers of ESS BIZTOOLS explains why accounting firms, bookkeepers and business advisors need to actively position, communicate and sell advisory services if they want to be seen as true Key Strategic Partners. Featuring insights from the Intuit QuickBooks SMB 2025 Survey and The Boss Factor Library, this discussion highlights how firms can strengthen client relationships, build new revenue opportunities and deliver the forward-looking advice SMEs need.

CLICK HERE TO LISTEN TO OUR PODCAST

Listen to more Accountants Minute Podcast episodes here

Want to know more?

Visit www.essbiztools.com.au.

If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 0418 190 181 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.

We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.

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