step into the role of a business advisor

are you proactive or reactive?

by matt solomon
the center for enlightened business

once you’re ready to stop depending on compliance work, you’ve got to move your business into another model. you need to be proactive, charge for your value and leverage your existing knowledge and skill set.

more: shift your practice: stop depending on compliance work | take the nine-point practice checkup | three ways to leverage today’s uncertainties for renewed growth
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the business advisory model is your way out of compliance work! you can charge premium prices, work with better clients and be of greater service – while working fewer hours.

a note about premium prices: i sometimes get pushback from accountants who worry that if they raise their prices, they’re going to lose business to the firm down the street. the truth is, not every one of your current compliance clients is going to be a good fit for this model, but that’s okay. you don’t need as many clients if they’re each paying $3,000 to $15,000 per month!

premium prices are a reflection of your value, and that starts with how you value yourself. a higher price tag for your services means clients have a better sense of your worth, and it means they are more motivated to take action on your advice. premium pricing helps clients invest not only in you, but also in themselves.

if you think there isn’t a market for business advisory services in the accounting space, i’ve got to tell you that the numbers don’t support that assumption. accountex reports that “72 percent of business owners have changed their cpa or accounting firms because the firm did not give proactive advice, only reactive service.”

the cost of not stepping into a business advisor role is pretty steep:

1. you’re missing the mark on what clients want.
2. you’re working on the hamster wheel of high volume and long hours.
3. your practice is unrewarding; you’re not serving your clients in a meaningful way.
4. you actually risk losing your clients in two ways: they could leave you for cheaper compliance services elsewhere, or they could leave you because they’re looking for advisory services that you don’t offer.
5. you’re making personal sacrifices: your health, quality of life and well-being could all be better if you could do purposeful work for more money in less time.

meanwhile, the rewards are pretty exciting. for many accountants, this paints the picture of their ideal practice:

1. you’re free to work with clients you love.
2. you feel valued and appreciated for the services you provide.
3. you earn $3,000 to $15,000 per month, per client.
4. you have realization rates of $500 or higher per hour.
5. you feel alive and passionate; you’re challenging yourself instead of doing repetitive work.
6. you’re building great relationships with clients who are happy and satisfied.
7. you’re helping clients with the higher-level work of growing their businesses.

if that sounds like the practice and the life you’d like to lead, becoming a business advisor is the path to getting there. this choice to adopt the business advisor model is so important that i actually encourage accountants to declare it out loud! it might feel silly, but go ahead and try it for yourself; there’s (probably) nobody listening.

repeat after me: “i choose to stand up for my value and step into the role of a business advisor.”

congratulations! that’s a huge win and a major first step.

to keep moving forward, it’s critical that you understand what you have to offer as a business advisor. if you don’t understand your value, it will be difficult for you to communicate it to clients.

posted on october 27, 2020