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Your Clients Need Business Advisors

Now more than ever your clients need a business advisor. They need more than someone to complete their tax return or PPP form. They need more than someone to pass along updates and FAQ documents and to inform them of changing deadlines. They need someone who understands their business, the rules and opportunities and helps them figure out a path forward amid uncertainty and change.

The current pandemic has brought defining “business advisor” to the forefront of the profession.

What is a Business Advisor?

In reading some of what has been written on the topic of business advisors, it seems the accounting profession still lacks a clear sense of the term. Some people use business advisor to describe individuals who advise clients on a number of issues on a regular basis. Others use advisor or advisory to describe a team of consultants who perform specialty services for clients. At times we’ve seen both definitions included in descriptions of what a team of business advisors should look like for a firm.

The lack of clarity in the term business advisor leads to two things. 1. Continuation of the status quo. 2. Lower performance than what is hoped for. Many CPA firms have experienced both as they have moved to become less reliant on traditional services. And now, compliance deadlines are being shifted and audit work is being deferred AND your clients need help. Mobilizing your team to become advisors to clients is critical.

Firms that are most successful in developing the non-compliance side of their business make a distinction between business advisors and consultants – yet recognize the relationship between the two.

Business Advisors vs Consultants

On one hand, firms have a group of consultants who have specialized skills in a variety of disciplines – specialized tax services, business valuations, IT systems and security, etc. On the other hand, business advisors are not necessarily the subject matter experts, and in many cases will not perform the services that clients need. But they are highly skilled at exploring a variety of non-audit and tax topics relevant to their clients’ businesses. Business advisors are needs assessors who should be continually looking for additional ways the firm can help clients. Advisors are adept at helping their clients understand their challenges and engaging in conversations about solutions. The best business advisors have deep relationships with their clients, instill confidence and ultimately feed work to the firm’s team of consultants.

Advisor Consultant
Frequent and continuous Less frequent, more discrete
Strategic, high-level Operational in nature
Predictive, forward looking Present issue(s) focused
Relationship based Expertise based

Business advisors go beyond simply being available and responding when clients call. Good business advisors are future-oriented. They identify opportunities and make suggestions for improvements that go well beyond identifying problems or dealing with historical information.

Attributes of Business Advisors

Look for the following attributes to help you identify individuals in your firm that will make good business advisors:

  • They have a passion to be an advisor vs. just a passion for compliance work
  • They are trustworthy – understanding and practicing the behaviors of trust such as being straightforward and following through
  • They apply both questioning and listening skills
  • They are willing to learn, to practice new skills and then master them over time
  • They have excellent communication skills, both in clarity, frequency and choosing the right “method” for the situation
  • They not only get the numbers right but are able to understand what the numbers mean, how the future will be impacted, giving them the opportunity to offer solutions to clients vs. telling history
  • They are willing to specialize – spending the majority of their time serving 2-3 different industries
  • They are driven by curiosity
  • They are ok with ambiguity and not always knowing the answer, but are committed to finding it (or introducing someone else who knows it)
  • They are confident enough in their relationships with clients that they aren’t threatened by introducing another “expert”

Firms that do this right have a competitive advantage now and in the future that is identifiable and easy to talk about in marketing and business development activities. They also have the ability to create loyal clients who are less vulnerable to being courted by competitors.

Take the First Step

Start by bringing internal leaders (current and future) together to create a vision for the firm’s future and the role of business advisors. Agree to a very specific list of service attributes you expect business advisors to deliver as well as two to three behaviors for each attribute that will lead to the accomplishment of the vision. Begin to name the practitioners in the firm who are best suited for the role and identify training opportunities to develop the right skills and processes to fulfill it. Create performance standards that tie to the firm’s evaluation and reward system.

An outside facilitator can help make the process of defining the vision, attributes and behaviors easier. If you would like us to help, send us an email at info@thewhetstonegroup.com.

 

Securing Client Loyalty in Uncertain Times

The 2020 coronavirus pandemic has created a lot of uncertainty. In addition to our daily routines being thrown into disorder, the accounting profession is uniquely affected in so many ways. Deadlines are shifting. Rules are changing. Even that which seemed straightforward is open to interpretation (like payroll costs!). There is comfort and security in routine, and now that has been disrupted. But, now is a perfect opportunity to strengthen client relationships and secure their loyalty. After taking care of your employees and mobilizing for their safety and well-being, your next focus should be clients. Here are some practical actions to take sooner, rather than later.

A Lifeline in Uncharted Waters

Your clients are your firm’s lifeline and will continue to be through the months ahead. And in many ways you are theirs as well.  When there is uncertainty people will turn to people they know for help as opposed to seeking out new relationships. They will count on those they trust most – like you.  So if you haven’t already been checking in on your clients’ well-being it’s time to start. Do not put it off until you think the economic picture is clearer or the “unknowns” become certain (which is likely to take a very long time). Instead call, or better yet video-conference, with your clients to see how they are faring. Ask how their families, friends and coworkers are doing. Be prepared for them to vent if needed—and let them.

If you create a stronger dialogue with your clients, you’ll be in a better position to offer relevant help and support as they navigate their way through the uncharted waters ahead. And the more they appreciate your support; the more loyal they’ll be to you. They may even recommend other clients to you who are not having the same experience.

Here are some other ways to support clients in the weeks and months ahead:

  1. Talk with them – your clients probably won’t know the full impact of the pandemic yet, but they probably will have a sense of the immediate repercussions and/or opportunities. Find out what these are. How can you help? Even if you don’t have the expertise to help, can you connect them with a resource? Can you provide information that will help them access the help they need elsewhere?
  2. Focus on certainty in the short-term – the world is still turning and people will still need certain products and services. Some of your client may be offering these products and services – so help them understand how the current environment affects their demand. There are also some opportunities to help clients navigate government relief packages in the short term. Finally, help your clients think differently about their business and be a resource to them as they pivot. For example, are there decisions clients can make now to enable them to move forward down a certain path (maybe without all the information, but with enough) vs taking a “wait and see” approach for everything?
  3. Support their longer-term scenario and contingency planning – your clients will want to reduce risk as much as possible and having a course of action for various scenarios helps. It’s likely there are many ways your firm can help: re-forecasting, cash management, financial statement preparation and other CAS and advisory services will be at the forefront ways you can help. The CARES act also offers opportunities for specialty services such as cost segregation, nexus consulting and planning, SALT and R&D credits which may also be useful to your clients based on their situation. During the last recession there was an increased demand for insolvency and bankruptcy consulting. It will be important to find ways to involve less experienced staff as much as possible so think about what you can delegate to your team members.
  4. Continue to stay on top of the issues which will affect them – these could be state-based, industry, organizational or even personal issues. Be alert to how the latest developments may impact on them and offer timely, relevant advice or support when it’s needed. The more you understand about your clients, the more relevant issues you’ll spot. Make everyone on your team part of the effort by encouraging knowledge share internally and defining a process for how/when/where it occurs. Better yet, let your younger staff define and communicate the process!
  5. Be accessible – if it’s difficult to get hold of you and your team, clients may lose some faith in you. Although you may not have all the answers to their questions, being available and listening to them is important. Especially if your people are working in an environment (remote) which is different from the norm, it’s critical to make sure clients know how to reach their primary contact(s). A word of warning, this does not mean you must offer 24/7 access. As your people adjust to working from home it’s tempting to blur the boundary between home time and work time. Allow your people to set their “office hours”— those times in which they commit to taking calls. Establish and communicate (or reiterate) to clients and your employees your firm’s responsiveness policy. Your people are stressed and worried enough so don’t pile on by making them feel like they are constantly on call.
  6. Do what you say you’ll do, when you said you’d do it – accountability is one of the pillars of trust. Now more than ever clients want to be able to count on something…and that something is you. Minimize client turnover by ensuring you continue delivering a high-quality service they have come to know from you. This is the time to ask your clients what they need from the relationship (not the services they need, but attributes of the service like accessibility, being proactive, candidness, etc.). If your definition of what you think they need and their definition of what they thing they need are not the same they may be disappointed with their experience and seek an alternative.
  7. Think about alternative payment terms – If your firm has practiced some kind of prepayment strategy for services your firm is likely in a better cash situation than firms that have not. However, before clients start asking for fee reductions, identify the “A” clients you want to invest in so you know which clients you should be willing to make fee concessions for if the issue comes up. Be ready with a plan to talk with these clients so you are not taken by surprise if they ask. You don’t want to discount the fees of a “D” client in bad times and perpetuate the pain going forward. So as difficult as it may seem when you are managing cash flow, be willing to let some of those clients go.

We recommend when a client asks about reduced fees, first explore changes in scope that can impact the total fee. For example:

  • Will a review be okay for a year or two vs. an audit?
  • Can we do a collateral only audit vs. a full scope engagement?
  • Can we arrange a term payment plan for the fees to make it easier?

Most importantly, be willing to talk with clients about fees. Don’t hesitate, or act angry that they asked or assume the client wants a reduction. Empathize. Strategize. If you have to invest in a client, make sure they know it is a temporary situation and you are willing to do it because they are an important client of the firm and you want to help.

Doubling down on client loyalty will help steady your firm during this time of transition and enable you to deliver the kind of value that ensures clients for life.

Three Key Elements to Cross-Serving Your Clients

At the risk of sounding harsh I’m going to lay an honest truth out for you: your clients and prospects, don’t want your services. As matter of fact, they couldn’t care less about your services. While that may be disheartening to professionals who are not only passionate about what they do but also eager to create opportunities to grow, it is in fact the truth. An audit isn’t and never will be at the top of any executive’s wish list. They aren’t seeking new methods of accounting because they find it interesting.

Clients and prospects are, however, desperate for solutions to their pressing business challenges. They stay awake at night thinking about them—contemplating their next move, lamenting over opportunities they’re not sure how to seize, fretting over their changing competitive landscapes, wondering how they will finance their expansion.

These are your clients’ and your prospects’ needs. And therein lies a disconnect for many firms looking to increase client loyalty and attract new clients.

Professionals think about what they do for clients in terms of services. They bring ideas to clients in the form of services they can provide to help clients. In fact, many professionals talk about “being proactive” as a differentiator in the way they serve clients, and they define proactively serving clients as bringing them new service ideas. Even if these services are based on the client’s situation, or what in your professional opinion you know the client should be focused on, until you are able to connect that service to a business need with which the decision maker identifies it’s a service, but not a solution to anything.

Rather than cross-selling, maybe we should think of this as cross-serving. Here’s what cross serving looks like:

  1. Understanding what your client cares about

In order to understand what clients care about we need to ask questions. Cultivate a curiosity to learn whatever you can about your clients. Think about, and even write down, the questions you would like to ask. Construct those questions as open-ended – meaning questions that require more than a one-word response. Don’t limit your questions to the engagement, or area you care about. Instead ask question that encourage them to share what’s on their mind: “What accomplishments made you most proud this year?” “How did you feel about your year?” “What are your goals for this coming year?” These don’t need to be limited to financial or even professional areas. Let you clients just talk. And do not jump into trying to solve the first thing you hear. The first priority is just to understand what’s important to your clients.

  1. Articulating how what you do connects to those things your clients care about

This opens professionals to a whole world of creative possibilities for helping clients. Conversations with clients about how you apply your experience and expertise to help them address their business challenges, perhaps in ways they haven’t considered, helps deepen the relationship, builds trust and supports the firm’s topline growth.

If I’m your client, and you come to me with a service – that’s your agenda. When you come to me with a solution – that’s my agenda. Truly client-driven firms build processes and tools to interact with clients, and to bring up ideas based on their professional experience and expertise. What does cross solving look like?

  1. Remembering to help capitalize on opportunities – not just identify problems

CPAs are really good at identifying problems – material weaknesses, errors, etc. – and get pretty excited about helping clients solve them. And in your profession this is critical and something your clients count on. However, I encourage you to actively pursue the idea of opportunistic thinking. Most entrepreneurs, owners and business leaders are motivated by opportunities vs threats. Solving “problems” tends to appeal to folks who are motivated by threats. And yes, some of your clients fall into that category. But to be a true advisor for clients you need to pay attention to finding creative opportunities to strive for in addition to issues to solve.

Cross-serving clients not only fosters greater loyalty and topline growth, it’s a more full-filling and rewarding way to practice your profession. Win-win, don’t you think? To learn skills, tools and processes to tap into this opportunity, take a look at our professional development courses, or contact us today at info@thewhetstonegroup.com to find out about our coaching services and how we can help you.