Businesses and organizations today face increasingly complex demands in all facets of their operations. Many companies understand that they need to optimize these operations; however, they often don’t know what steps to take to achieve optimal results. To help clients address these challenges, consultants can provide operational assessments and analysis for a wide variety of scenarios. These unique qualities help companies identify the actions needed to achieve their business goals.
Accounting firms offering consulting services give businesses a competitive edge, advance and deepen client relationships, and open doors to new growth opportunities.
Business growth and profitability
There has been a shift in the industry where more and more CPA firms are expanding their offerings to include the consultancy and consultancy arms of their business. Accounting firm executives are beginning to see the potential and value that consulting services can offer. In fact, the consulting services market as a whole is expected to grow at a compound annual growth rate of 4.30% from 2021 to 2026. The impacts of COVID-19 on businesses have accelerated the need for management consulting services to help businesses rebound from the pandemic and implement implements strategies to increase overall growth and efficiency. The position of trust accounting firms hold within the business community makes adding advice a natural step in their evolution.
Advisory services that are a natural outcrop of accounting firms are primarily related to technical accounting, tax, finance and transaction advisory, as well as compliance in an ever-changing regulatory environment. By adding consulting to a collective portfolio of services, companies can expect to generate additional value for the customers they serve, which will invariably lead to additional revenue streams. With an increase in the number of services, companies can have a significant impact on growth, not only on their turnover, but perhaps more importantly on their profitability.
Board customization and personalization
No two businesses are the same, and as a result, they will have unique goals, objectives, and obstacles. Consultants offer tailored solutions that meet a company’s specific needs and help clients translate their financial data into profitable business decisions. Companies that have decided to add consulting practices do so to create value and help clients achieve their short- and long-term business goals.
Business accounting advisors and consultants offer a personalized approach to public and private companies, non-profit organizations, healthcare organizations, government agencies, etc., and in a wide range of fields, including business valuation and succession planning, investment banking, mergers and acquisitions, fraud, cybersecurity, compliance, transportation, cannabis and more. With experience in a wide range of services and industries, companies are well positioned to offer the customization of management reports in support of critical business decisions.
Improved customer relationship and loyalty
By offering tailored solutions and understanding key business objectives, consulting services can build customer loyalty and retention. As stated above, one of the big benefits of adding consulting services to a business is organic growth with existing clients, but deepening those relationships will mutually benefit both parties. Already having in-depth knowledge of a business, consultants can easily embark on specific strategic projects for traditional clients, reducing the time required to onboard and train a new relationship service team. This offers efficiency and effectiveness which can be a powerful motivation for clients facing increasing challenges and at the same time.
A new way of doing business
Pivoting or adjusting current business models to incorporate consulting services can help drive business growth and profitability, open the door to greater growth with clients, and differentiate an accounting firm by offering expert advice in unique areas of activity. This type of integrated, holistic service approach will likely continue to grow in the accounting field as clients seek to partner with firms that offer a wide variety of services, expertise and critical thinking under one same roof.