The holiday season reminds us to savor time with family and friends, because with the new year, the tax season jumpstarts. Oftentimes, this four-month tax season crunch is the one and only meeting with our clients, causing a transactional relationship that is more of a compliance checkoff than a strategic session. Jan. 1 through April 15 are a whirlwind of 1120 forms and business calculations, but it doesn’t have to be a squeeze.
The industry is moving toward an advisory philosophy, meaning that accounting advisors are counselors for clients in strategic business planning rather than yearly tax computations. Where better to put this into practice than tax season 2021? As we start meeting with our clients to reconcile 2020, let’s begin the dialogue about what’s next for 2021. By planning ahead, we can start to seek opportunities for future tax credits, discuss cash flow successes (and failures) and assume the role of advisor.
Future-based conversations are the first move toward an advisory practice. These discussions are the unique differentiator that your clients won’t be getting from other providers with a once a year tax request. By integrating a human touch with the power of AI, advisors can lay the foundation for more fruitful and reflective client-advisor relationships.
Ready to make the transition to an advisory model? We recommend the following steps to become a more advisor-centric accounting firm:
1. Instill company culture that is ripe for change. The transition from transactional tax preparation to true advisory is not easy for accountants and management used to hourly billing. Prepare for some growing pains. The first step is to create a work environment ready to take the plunge. It’s key to recognize the movement of the industry and the need to engage in more future-focused activities with clients. Culture comes from the top, so be open to seeing where your firm can improve and embrace the ability to upscale your client services.
2. Incorporate the right tools. Human counsel paired with AI and automated insights can be a powerful combination to create smart, strategic plans for clients. Getting the right tools in place will help empower your teams to have the real-time information that drives advisory conversations. Cloud accounting is a critical component in building a better experience for accountants and their clients. The cloud enables access to all your working necessities whatever hour of the day. In today’s remote world, it also offers the option to tap a team anywhere — independently as we continue to work from home, together in the same office, or on the other side of the world. By using the right tools, you’re able to get the best innovation anytime, anywhere by using the cloud, ultimately saving time for both your teams and your clients.
3. Find dedicated people to be advisory champions. In addition to creating a culture open to the transition, you will need to assemble a “department of innovation” to rally the full team. It can be as formal or informal as it needs to be, but most importantly these stakeholders have to be excited about change. Internal stakeholders can support the company’s transition to advisory-focused services, as well as be on the ground for real-time feedback from peers. There should be regular communications with the staff from firm leaders and these champions to ensure everyone knows change is coming and the new tools and service offerings are truly integrated.
4. Train the team for their specific needs. Adoption of advisory services is not a one-size-fits-all endeavor. Training should be tailored to each team’s specific needs. A prerecorded point-in-time training won’t cut it. Introductions to new tools should be catered to different levels or roles of team members. Some team members just need to know how to login to multiple clients and review, whereas some need to be power users. Adopt new changes and technology incrementally during training, as the full team can learn together and have context.
The move to advisory isn’t just for your clients, it’s also for your staff. An advisory mindset opens up new possibilities (and additional time) for career development and exploration — and a healthier, more productive work-life balance. Tax departments should not be holed away in the supply closet from January to April. Your colleagues — at any management level — should be enriching their client relationships all year, not just once or twice at tax time. Advisory services offer an opportunity for accountants to do more, without adding more. So, here’s to a better 2021, to better client relationships, and to the transition to advisory services.
