{"id":81871,"date":"2021-02-17t13:00:59","date_gmt":"2021-02-17t18:00:59","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=81871"},"modified":"2021-03-01t09:10:30","modified_gmt":"2021-03-01t14:10:30","slug":"a-rose-by-any-other-name","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/02\/17\/a-rose-by-any-other-name\/","title":{"rendered":"true advisory work isn’t just consulting"},"content":{"rendered":"
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the difference may seem slight. but the dollars are very real.<\/strong><\/p>\n this is the first in a series of articles by gary bolinger, the former ceo of the indiana cpa society, explaining how accountants can move beyond consulting and into higher-level advisory relationships with clients<\/em><\/p>\n by gary bolinger<\/em><\/p>\n call it consulting, advisory, small business growth or entrepreneurial services \u2013 does it make a\u00a0 difference? cpa firms are seeking to add value to clients in non-traditional ways. something other than compliance-related services. but firms seem to struggle with defining what \u201cit\u201d<\/em> actually is.<\/p>\n exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n all too often consulting services are after the fact. practitioners discover a \u201cproblem\u201d or some kind of shortcoming through a tax or financial reporting engagement. dutifully, the practitioner brings the issue to the attention of the client. the client dutifully asks what should and can be done. after some discussion, there are agreed-upon next steps. problem solved. sort of. that is consulting. so, there is <\/em>a difference between consulting and advisory. consulting and advising are two distinct terms that are often lumped together but there are some critical differences.\u00a0 advisers typically work with clients on a long-term basis. rather than resolving a specific issue for the short term, advisers help small businesses overcome obstacles through general mentoring and longer-term strategy. advisers help entrepreneurs and small-business owners with expert advice and coaching.<\/p>\n firms and the practitioners in those firms need to make the important commitment to higher-value advisory services. who would pay you for an audit if they were not required to have one? who would pay you for tax services if they did not need the help (as opposed to want the help)?<\/p>\n face it, cpas really can\u2019t differentiate on audits. everyone uses the same standards (recognizing that some firms do apply those standards more effectively). but at the end of the day, an audit is an audit. many and probably most clients do in fact shop on price.<\/p>\n the same cannot be said for value-add advisory services. firms that are serious about transforming their practice to advisory have a plan. or they recognize the need to develop a plan. current consulting services in many firms are of the \u201cmake it up as we go\u201d variety. a consistent methodology from partner to partner, manager to manager is lacking. everyone is kind of doing their own thing.<\/p>\n in firms that want to develop a true value-added advisory practice, some simple principles should be put in place.<\/p>\n concentrate resources. the notion of concentration of resources is true for just about any business. unless you are amazon, every business has limited resources and those resources need to be concentrated in ways to ensure the future success and growth of the business. this concept will vary significantly depending on the size of firm. in small firms, the only way to concentrate resources may be to get rid of a few clients who don\u2019t generate that much revenue and drain resources. the client who doesn\u2019t have as bright a future as other clients. yes, you might need to identify a client or two to free up some time to think<\/em> about developing a repeatable methodology to deliver value-added advisory services. larger firms may need to assign a certain amount of chargeable time to a partner with the right skillset to develop the processes and tools that everyone providing service should adhere to.<\/p>\n ensure that every advisory engagement utilizes the same methodology and meets the same \u201cstandards\u201d established by your firm. quality control in advisory is as important as it is in any other service that you provide.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
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\n\u201cconsulting\u201d services fix the problem that existed but fail to assess the environment on a forward-looking basis. while there is value in \u201cfixing\u201d an existing problem, the cpa should be exploring with the client what can be done to enhance the future success of the client and the client\u2019s business. and the cpa is not going to provide much forward-looking advice while looking backward. you don\u2019t drive a car by just looking in the rearview mirror. you need to look through the windshield to give you a better sense of what is ahead and to avoid a serious accident.<\/p>\n