- The Automation Shift: With advancements in technology, basic compliance services such as data entry, document management and payment scheduling are becoming increasingly automated, leading to squeezed margins and commoditisation of these core services.
- Evolving Client Expectations: In a digital era driven by integrated cloud systems where information is readily available, clients are often turning to online platforms for visibility, even preparing their own accounts. Unless firms can truly stand out as experts, they risk losing relevance in their local business communities.
- Limited Growth Opportunities: Solely offering compliance may also limit income streams and opportunities for growth. With more competition for basic services, and firms competing to offer core compliance at the most effective rate possible, adding revenue can require a larger client base and a laser-focus on internal efficiency.
- Scaling Challenges: Given the high degree of manual work require in some compliance work, adding new clients on a purely compliance basis can require adding additional headcount, increasing internal costs.
Embracing Advisory: Opportunities and Myths
Advisory services open up new avenues for firms to diversify their offerings, providing targeted, data-driven insights and reporting that can help business owners take advantage of the financial data available to make better decisions and improve outcomes.
However, some firms have been slow to embrace advisory due to an outdated perception of these services.
- Advisory isn’t just for big firms
While the advisory professional services conjure images of Big-Four boardrooms and vast teams, the reality of modern advisory is much more personal. The ability to store, analyse and share information digitally has radically reduced the resources required to offer advisory services, enabling smaller firms to offer in-depth, consultative value at a price point that small businesses can afford.
- Advisory isn’t a one-and-done proposition
While some compliance services are offered on a rolling basis and others, such as tax returns, are based around the financial calendar, advisory is based around a deepening of the client relationship.
By working with real-time information and reliable forecasting, accountants can build on the conversations they already have with clients to offer strategic advice and guidance that makes a tangible difference to their success. Many small businesses lack the teams and systems to integrate this kind of planning into their existing structure, but accountants working at scale with the right tools have the chance to build value-driven relationships built on expertise, advice, and support.
- Clients don’t always know what they need
Given how established compliance services are within the profession, it falls to accountants themselves to proactively show the value of this kind of service. By working with forecasting and analysis tools such as Futrli, advisors can show their clients new ways they could be working together, with automated insights based on the clients’ own data.
- Advisory doesn't replace traditional services
Advisory is a valuable service, but it doesn’t operate in a vacuum. Compliance work remains crucial – up-to-date data, and strong client relationships are foundational to providing the best advice. Advisory services enhance traditional offerings rather than replace them, providing the opportunity to increase per client revenue and deepen your relationships.
The future of advisory
With clients facing an increasingly volatile commercial landscape, firms have a golden opportunity to position themselves as trusted partners to drive growth and success. This starts with robust, efficient compliance, while advisory services offer a pathway to greater profitability and growth.
Futrli by Sage is an integrated forecasting and modelling platform trusted by hundreds of firms to help clients get more out of their financial data. Building on your existing compliance practice, Futrli helps firms uncover new insights, improve client visibility and control and prepare for a changing market.
