it’s a strong opportunity for your high-net-worth practice.
by russ alan prince
there is a high probability that the u.s. will go into a recession. a recession, especially a severe recession, can be very detrimental to the accounting business. there are likely to be fewer wealthy clients looking to their accountants for advice and services.
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on the other hand, a recession can prove – from a business development perspective – very advantageous to proactive, astute accountants working with wealthy individuals and families. generally speaking, many wealthy individuals and families are poorly served in the best of times. a recession can act as a catalyst for the wealthy to realize they can get much more value than they’re currently receiving by working with competent accountants who are genuinely client-centered.
to meaningfully grow during a recession, the accountant’s business model must address a wide range of objectives and concerns of the wealthy. the aim is to enable the wealthy to achieve their financial and personal agendas.
for example, integrating tax mitigation and investment management is very valuable to wealthy clients, and it is not the norm for most accountants with high-net-worth practices. adding value in ways most accountants and other professionals cannot results in more wealthy clients. a recession will only increase the number of wealthy people seeking out accountants who can deliver at this high level.
even in a severe recession, there are going to be many wealthy individuals and families who require guidance and customized services. accountants with high-net-worth practices must critically determine the depth and breadth of expertise they will provide. consequently, accountants must be proficient at building rapport to uncover the needs and wants of the wealthy to match these requirements with their capabilities.
aside from the viability of the accountant’s business model, they will need to be able to connect on a preferential basis with the wealthy. there are various ways for this to happen. the most productive way to connect with the wealthy preferentially is through referrals from other professionals, such as wealth managers and attorneys.
when the economy is booming, there is a tendency for the wealthy to be less critical of the results they are getting from their accountants. in contrast, when times are more challenging such as during a recession, the wealthy will usually look closely at the results they are getting. therefore, those accountants with high-net-worth practices who can connect with the wealthy on a preferential basis and deliver exceptional value will find enormous opportunities to grow all the time, including during a recession. a recession is a tremendous time for talented accountants with high-net-worth practices to grow significantly.