When you expand your accounting/bookkeeping firm to include financial/commercial/management advisory services, it requires you to enter into a professional relationship completely separate from preparing Annual Accounts and Income Tax Returns. This is very important because the work you provide is time-sensitive, ongoing, and requires a progress payment schedule your clients understand. Here we offer tips to help you create the perfect financial/commercial advisory services proposal that helps define roles and deliverables to meet client expectations.
CLIENT RESEARCH
Conduct your research first with your client or prospect utilising the SME Needs Analysis (included in your ESS BIZTOOLS subscription).
DEFINE ROLES & RESPONSIBILITIES
When creating your proposal, make sure you understand if your assignment is dependent on another professional’s work. If their part of the assignment must be undertaken first such as preparing and providing a marketing report, your proposal must detail this requirement clearly. Using a template like the “Briefing Document Market Research Validation” BAS1306 included in ESS BIZTOOLS ensures there is a proper demarcation relating to who is responsible for what. This way no balls are dropped and expectations are met.
SUMMARISE WHAT YOU PROVIDE
A “detailed outline of proposed approach” is the easiest way to summarize what you are providing to clients. If you adopt this approach, you can follow along to make sure every detail is included, and you remove the possibility of misunderstandings. An important element of the approach is to also include outcomes. Again, this allows you to better manage expectations. However, outcomes should be included as a separate section of your proposal.
SCHEDULING
One of the reasons accounting/bookkeeping firms fail at their financial/commercial/management advisory services is that they continue to focus on what they consider the core bread and butter of their business: tax and compliance. However, you have to remember your decision to expand your business was to partially move away from this focus and bring more value-added services to your clients and prospects.
If you take an approach to your new services as a “nice to have” that is only attended to when the rest of your business slows down, you fail to meet the needs of your clients. Therefore, the best way to keep yourself on track and continue to support your financial/commercial/management advisory clients is to include a detailed proposed timetable. Not only does this keep you on track, but also provides an opportunity to include documented requirements for the client’s team to provide.
As mentioned under defining roles and responsibilities, a schedule includes timing for anything your client or other partners are expected to provide. This way, should you not finalise your report due to another consultant’s failure to deliver, those items are identified, and you are not held accountable. This also reduces any stress that you will be unable to complete the report until these items are received.
PERSONNEL SUMMARY
When an entire team is working on the advisory assignment, it adds weight to the services you provide. By summarising the personnel included in undertaking the assignment, you introduce your team and make it easier for your client to associate the work with the people behind it. Along with the summary, you should also ensure your client is introduced to your team to make your services more personal.
YOUR FIRM’S STORY
The history and experience of your firm provide confidence you can take on the assignment. Extended services for existing clients can be tricky if they continue to see you as an income tax returns service. A history that speaks to your experience and achievements helps instill a sense of professionalism, so clients feel good about their decision to engage your financial/commercial advisory services as well.
QUALITY ASSURANCE
Confirm that you have a quality assurance review system, so clients understand there is a process behind your work. Outline how every document is closely reviewed before the final document is shared with them so they know you take their work seriously and consider quality of the utmost importance and something each client is due.
PROFESSIONAL INDEMNITY INSURANCE COVER
In your proposal confirm that your firm has professional indemnity insurance and should be proud to mention it. This confirms that your clients are covered should anything go wrong—not that you have the coverage because you feel you might make mistakes. It helps convey a sense of responsibility to your clients and a higher level of professionalism that will apply to the assignment.
QUOTATION
When you are submitting a proposal for the supply of financial/commercial advisory services, you should supply a quotation and a payment schedule. For many of your clients or prospects, this type of assignment will be a new service for them, so highlighting the cost and the payment terms you are seeking is essential. Supplying a written quotation and confirming your payment requirements will assist in avoiding unpleasant problems later.
SEPARATE ASSIGNMENTS
When a client requests you to undertake additional work not included in the original proposal, this is a sign that your client is happy with the assignment and now wants to entrust your firm with supplying additional services. However, make sure that the activities to be performed as the additional work are clearly outlined in a new proposal and payment schedule, which you submit to your client. Ensure you receive your client’s signed acceptance of the additional work before commencing. These additional assignments should be invoiced separately, creating a clear distinction between the projects. This approach ensures payment and avoids misunderstandings about what was included in each assignment.
UNDERTAKING ASSIGNMENTS WHEN YOU ARE NOT THE CLIENT’S NORMAL ACCOUNTANT
Some accountants/bookkeepers will decide not to offer financial/commercial advisory services. You may be approached by a client of one of these firms with a request to undertake a special assignment. In this case, it is a professional courtesy to confirm to the client’s normal accountant/bookkeeper (with your client’s knowledge and approval) that you have been approached to undertake the assignment. Examples of special assignments may include:
- Research and Development System Implementation
- Preparation of Business Plans
- 52-Week Business Enhancement System Implementation
- Preparation of Predictive Financial Accounts – Budgets, Key Drivers, Cash Flow Forecast, Projected Balance Sheet, Projected Source and Application of Funds
- Advice on capital raising options available to SMEs:
- Crowd Sourced Funding Equity Raising
- Early-Stage Innovation Company
- Section 708 of the Corporations Act
- Corporate Governance Advice – Company Directors and Boards of Advice
- Government Grants – Federal, State, and Territory assistance for SMEs
- Charge Out Rate Calculations – Tradies and professional services
- Retail/wholesale calculations of targeted selling prices – markups to achieve targeted profits
- Annual Business Review Planning Events
ACCEPTANCE
As indicated earlier, it is prudent to supply an original and duplicate copy of the proposal, quotation, and payment schedule to your client for review. Request that your client sign the duplicate copy of the proposal and return it to you if they are satisfied. It is desirable to also include your invoice for the first progress payment, detailed in the payment schedule, with a request for payment to your firm’s nominated bank account.
Your proposal should indicate that you will commence work on the assignment once you receive the signed duplicate copy of the proposal and the first progress payment. Conclude on a positive note, assuring your client that you will assist them in the development of the services they require to ensure the continued prosperity of their business.
SAMPLES OF ENGAGEMENT DOCUMENTS
ESS BIZTOOLS’ Product Packages include samples of engagement documents suitable for individual assignments, which are available for our subscribers.