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There seems to be inordinate concern about the future of public accounting and especially for smaller practices. I do not understand the pessimism and see only a great future ahead. To support my views, the following are some growth areas that CPAs could jump on. These can be done by smaller practices, individual partners in larger firms or by any practicing CPA:
Client accounting services (CAS) and fractional CFO services: This is a rapidly growing area where the market is starting to recognize the advantages of not having inhouse bookkeeping, accounting or CFO personnel. These are essential but non-core services every business and not-for-profit organization needs and can best be done by accounting firms that have the wide array of trained professionals that could handle in a pretty seamless manner most issues that arise.
Niche development and expansion: Clients are fully recognizing that accountants familiar with their industry and its peculiarities and subtleties are much better able to handle their accounting, tax, control and advisory needs. Any firm with a concentration of clients in an industry, even two or three clients, should look to leverage that experience, expand their knowledge and provide further value-added services to their clients.
Financial statement audits: Many smaller CPA firms are abandoning audit services because of the added costs of keeping up to date. Small CPA firms can fill a big need of many smaller and mid-sized business and NFP organizations where those audits are not cost effective for larger CPA firms. Fees do not have to be cut. Firms just need to provide the services these clients must have, and this could be a very profitable and reliable source of revenues. Further, audits are becoming more mechanized and digital, and these techniques are becoming available for smaller CPA firms to adapt. Another role smaller CPA firms could play is to help clients become audit ready for the auditors and advise family-owned clients that might want to sell how to prepare for the eventual audit that would facilitate that process for them. Further, CPA firms that perform audits should have a lower turnover since many staff want to participate in these services.
Asset and wealth management: Many clients with at least $250,000 in investable assets need some sort of financial planning and wealth management. This is an area many CPA firms are knowledgeable in and where they are much more aware of their clients’ financial affairs than any other group. It is also a way to keep all of the financial services a client needs under one roof with a single advisor helping the client traverse the mine field of services available to them. Asset management is a continuing, sustainable and growing source of revenue for CPA practices. Many of the financial planning services could also be performed for fees for services without the asset management services. I suggest an initial financial planning engagement with follow-ups and maintenance included as part of a comprehensive bundled subscription engagement model with the client.
Advisory services: Many times excellent advisory services are provided when the accountant supplies offers a user-friendly report and then explains it to the client, emphasizing how the underlying data was used, developing trends that are indicated, how a projection into the next year will look, the effect of changes on the overall value of the business or any surprises uncovered. Most of this can be handled by some added time at the end of a meeting (or with a call) and will strengthen the relationship. Some of this might require an added engagement, such as determining the current value of the business and its key value drivers. Look for these opportunities but do not overlook providing a clear understanding of the current situation as reflected on the monthly client-generated financial reports. Twelve pages of financial data won’t accomplish what a five-minute call would.
CPA firm back-office services: Just as CPAs can and should provide CAS services to clients, they can also be provided to other accounting firms. Every reason why a client should outsource its CAS applies to CPA firms that are also businesses. Think about this and try to develop this as a niche for your practice. There is no reason why a CPA specializing in CAS for CPAs cannot develop a significant revenue stream.
Client system controls’ review: I believe most business and NFP leaders have considerable concern about the adequacy of their controls. Performing a periodic review, as an added assignment, of a client’s internal controls and providing a “report card” can allay many of their concerns. Further, added engagements can be obtained if you are retained to assist in the implementation of corrective or tightening-up procedures that are indicated to be necessary.
Lifetime, buy-sell, continuation, succession, exit and estate planning: These are all services most businesses need but are usually neglected by the client. They are important but never urgent, until they become urgent and then it’s usually too late. Every business with more than one owner should have a buy-sell agreement, and solos should have a continuation plan. Those business owners should also have concerns about business succession, reducing the owner’s workload or stepping aside, and cash flow when no longer active, so they will have a secure remainder of their life. These are opportunities to greatly assist your clients and generate added revenues for you.
These are some suggestions for what I see as low-hanging services you can provide. There are many more. Many of these can be marketed to new clients as well as to existing clients. Once you begin adding services to your clients, more develop. Pick any one of the above, or all of them. These are important and easy ways to help your clients, reinforce your relationship and earn more. They will also assist in growing your practice and providing more opportunities to staff.
Growth means added changes. Try adding some changes to your practice.
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