In accounting, we talk all the time about the value of being a “trusted advisor” to your clients. We also talk about the increasing importance of advisory services, especially as
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CPA Firms have a leg up on many other industries when it comes to gathering data on our clients. By the very nature of our profession, as was noted in a helpful
Turning data into insights
Raw data is just that: raw. It is often unorganized, hard to interpret and overwhelming. If you want to provide streamlined advice to your clients, you need to be skilled at both analyzing data and packaging it in a way that is comprehensible and compelling to clients. The best data-based guidance will use numbers to reveal, confirm, or dispute an insight into how a business operates, providing a new level of understanding upon which to base decisions. In basketball, for
The same sort of analysis can be done on clients. Let’s say you have a client who is a retailer — they have brick-and-mortar locations, as well as an ecommerce presence. While they can have a larger product mix online, limited in-store space requires stocking a small portion of their inventory. If you can run the numbers and tell them which items are languishing on their shelves longest, you can make their in-store operations more profitable. Once you begin leveraging these quick and powerful takeaways, your clients will be more open to engaging in an advisory relationship. Remember to keep in mind the human or subjective aspects of your clients’ businesses at all times. The numbers may not lie but they also are just a part of the picture. The best advisors are those who combine clinical analysis with an empathetic human touch. Be mindful of all aspects of your clients when offering them guidance.
As data analysis becomes more widespread, the firms who are familiar with the systems and processes related to it will have a leg up on those who don’t. If you’re not already analyzing the data you get for clients to look under the hood of their business, it’s time to start doing so. That data should be combined with other factors about the types of companies you serve — if you serve a particular industry, you should be familiar with its workings and pain points — in order to make your clients better. That’s how you become a trusted advisor.