here’s how to show clients your true value.
by hitendra patil
client accounting services: the definitive success guide
so, the cdc has indicated that a mask also protects the person who wears it. previously, it was advised that masks stop people from spreading the coronavirus to others.
more: turn client wants into needs | what clients need now, more than ever | how to launch cas in eight steps | survey: why some firms fall behind in cas | how to lead clients into client accounting services | cas begins with a mindset
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but this post is not about coronavirus and masks. when it comes to accounting and the advisory insights hidden in the financial statements and numbers, covering those with a mask is not good for either the clients or the accountants.
financial statements are just like a mask. on their own, they don’t reveal the insights hidden in them. hidden insights do not protect the clients; they actually harm them. hidden insights hurt the accountants too because, over time, clients start to feel their accountant’s value is less and less. why? because clients not professionally educated or trained in accounting simply do not understand financial statements in ways that professional accountants can.
hence, as a professional accountant, don’t wear a mask, i.e., don’t mask the real insights in the financial statements. how?
how to unmask your value
as a professional accountant, you can see what your clients cannot/may not. your clients most likely see the mask when they see the financial statements. you, therefore, must unmask the statements for the benefit of your clients, and yours too. among several ways you can do so, here are some ways to get you started on the unmasking project:
- did the client’s business meet its goals during the latest accounting period, year to date? were goals established in the first place?
- as a professional accountant, if you see a challenge in the financial forecast (whether the client has bought advisory service or not), are you articulating that clearly to the client?
- cash is king in business. does the (client’s) business show a healthy cash-flow trend (receivables/payables in control)?
- are gross and net profit margins on target? if not, which business decisions clients made, and also did not make, created undesirable margins?
- from the financial statements, which are the top three business decisions you, as a professional accountant, identified that you would want the client to make to enhance the client’s business? why?
- (in client’s business) what changed? and why? if you can identify that from the financial statement, unmask that insight for the client.
- are there cost-optimizing/redundant cost elimination opportunities?
- are there financial fraud/omission/commission indicators? if yes, how the client can address those?
- are there tax-optimizing opportunities?
these are just a few examples to get you started.
if you still feel lost on how to unmask advisory insights, here is a simpler method – if you were the owner of your client’s business, which business decisions would you make to enhance the business? (hint: if you offer full-scale client accounting services – cas, it will be possible for you to generate actionable insights, almost real-time.)
do you use any unmasking techniques? please share your comments below.