august2021 - 27

FEATURE
Ways for CPAs to Become
Trusted Financial Advisors
By Justin Hatch
THE ACCOUNTING LANDSCAPE is changing rapidly as more
CPA firms begin adding advisory services to their offerings.
In one recent survey, 60 percent of firms reported offering
strategic advisory services for clients. While professionals
have known for some time that clients want more of these
services, the transition is not one that is easily made overnight.
While advisory services are a
valuable addition to CPA firms, it
will take time for clients to see their
CPAs in a new light. Firms will need
to put in the work to show they are
not just CPAs who provide financial
advice but trusted financial advisors.
These tips can help firms become
trusted financial advisors for their
clients.
SHOW CLIENTS
YOU KNOW THEM
There is a reason businesses
are interested in
more advisory services.
They need someone to give them a
deeper look at their finances than
just profits and losses and develop
a roadmap to help the business
advance.
Show clients you have deep
knowledge of their business that will
enable you to give them meaningful
advice. Give them personalized
financial reports to highlight trends,
hiccups, and successes you have
found, and collaborate on objectives
and ideas for improvement. Giving
a more personal look at the data
distinguishes you as more than just
the numbers person: it establishes
you as a member of the team.
IMPROVE YOUR
COMMUNICATION
When
you communicate
well, your clients
understand that you are putting
their needs first, and you know what
their business needs to thrive. With
your knowledge of their financial
data, you likely have great insights
into what their company should be
doing.
If you communicate those
insights well, it shows clients you
have done the legwork and can
back up your advice. They will see
that your goals are aligned and that
they can trust that the steps you are
taking are the best path. In good
financial times and during crises,
good communication lets clients
know they have your support.
SHOW CLIENTS
YOU ARE
AVAILABLE
It's easy to think of a
CPA as someone you
go to when you need a financial
report or have tax questions. It is
important for CPAs to build a yearround
relationship with clients so
they understand their CPA is always
available to help. Take advantage of
cloud technology to give your clients
real-time updates on their financial
situation.
As you transition to using the
Cloud, businesses will come to rely
on you consistently for financial
advice, rather than the quarterly
or yearly check-ins they might be
used to. Communicate with them
regularly to solidify their financial
plan and determine whether there
need to be any tweaks to keep them
going in the right direction. Clients
appreciate knowing you're always at
their side to guide them.
MAKE THE
SWITCH TO
VALUE PRICING
Firms of all sizes are
seeing the benefits of
using a value pricing model for clients.
The AICPA's 2018 MAPS report
(https://tinyurl.com/2wbffvem)
found firms used this billing practice
for anywhere from 15 percent to
50 percent of their services. Value
pricing allows your clients to pay
you what you're really worth while
seeing the bang they are getting for
their buck. Rather than trying to
keep the hours to a price they can
afford, they know up front what they
will be getting for their money, and
they appreciate the value of what
they are getting in return. Moving
to this pricing model builds your
clients' trust in you and your work
as they feel they have more control
over the finished product.
PROTECT CLIENT
DATA
All of your expertise
means nothing if your
clients' data isn't safe with your
firm. Don't forget about the most
basic trust your clients put in you:
to guard their data as though it were
your own. Data security breaches
frequently make headlines as major
companies are targeted, and CPA
firms aren't immune. An analysis
of cyber attacks against accounting
firms in Maryland found 132
breaches over a four-year period,
with 90 percent affecting small
businesses.
Highlight the steps you're taking
to protect vital information
so businesses know it is a priority
and they can put their trust in you.
Investing in more technology will
enable your firm to offer the best
financial services to your clients. As
you upgrade your offerings, be sure
to also invest in security measures
to ensure your firm is not caught off
guard by threats.
There are few people better
suited to provide sound financial
advice to clients than their CPA. If
you do the work to establish trust
with the businesses you serve,
they will turn to you for advisory
services. Let them know they can
always lean on you to support them
through struggles and lift them up
to help them succeed. ■
Justin Hatch is co-founder and CEO of
Reach Reporting.
AUGUST 2021 ■ www.CPAPracticeAdvisor.com
27
https://www.tinyurl.com/2wbffvem http://www.CPAPracticeAdvisor.com
august2021

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