You Can Do Advisory


You Can Do Advisory

The fast paced advances in technology and the earning potential of up to 300% higher than bookkeeping and accounting services, advisory is a hot topic. However, when adopting advisory, many accountants fear they may not be able to deliver. They ask questions such as:

  • Do I have the knowledge to offer advisory services?
  • Do I have enough experience?
  • What data do I need to analyse?
  • How do I need to analyse it?
  • Do I have the time to do the analysis?
  • Where do I even get started if I want to add advisory to my practice?

Basically, all of these questions can be boiled down to: “Can I do advisory?”

Here is the question you should ask yourself instead: What is advisory?

You first need to know what advisory is to see where the knowledge gap is, if any. You will realize that advisory is much simpler than most people think. You might also realize that you are already doing advisory but not charging for it.

What is Advisory?

Advisory defined in one word is coaching. As a coach, you help your clients identify problem areas and solve those challenges to strengthen their business. This process can be divided in two main steps:

  • Identify issues in your clients business
  • Provide them with guidance to solve those issues

 Think of a time when you have found issues in your clients business. What did you do? Did you reach out to them? Did you explain what the problem was? Did you provide help to solve the issue? Did you follow up with them? – This is what advisory looks like.

By now you may have realized that you are closer to doing advisory than not!
So… Yes! You can do advisory! Now consider finding a tool that gives you the analytics to find the issues and prepares you for the meeting with your client.

Let’s look at the two main steps of advisory and what you need to do to prepare.

Finding Issues

Finding issues is basically finding areas where the business is not working efficiently. Or becoming aware if the business is not as profitable as desired. You may also identify certain business capabilities that are decreasing, such as liquidity.

You may be asking yourself a couple of core questions by now:

  • What is the best way to find issues? The main tool to measure the health of a company is a financial analysis. This includes calculating financial ratios and comparing them against industry benchmarks. These financial ratios will measure areas of profitability, efficiency, operations, liquidity, and so forth. So all you need is one report with the ratios and benchmarks.
  • When do I find the time to do so? Plugging in formulas and gathering data for comparison takes quite a bit of time and expertise to increase efficiency. Even for a seasoned analyst, this process will be time consuming. Solution: Find a software that automates this report for you by calculating the financial ratios and providing industry benchmarks. This will save you hours.

Coaching to Solve Issues

Now you can sit down with your client with a Benchmark report in hand and issues identified. You can explain the report and coach your client to find solutions to the problems. This sounds easy, but how do you prepare to explain the financial ratios? How do you prepare to provide suggestions of improvement?

To save considerable time during this preparation and to increase your confidence, find a software that:

  • Does some of the education for you: Find an automated solution to reduce hours of research, studying, and looking for a way to present the financial ratios. MoreReporting gives you a Benchmark report that describes each ratio for your client. The software also allows you to edit the description and comments to fit your client’s communication style.
  • Provides a list of suggestions to improve the ratios: MoreReporting provides a list of suggestions that help you start the conversation with your client. This way you know what areas to start looking at to help your client solve the company’s issues. You may ask further questions to help your client reach the best solution for the business.

As you have seen, advisory is a simple process, and you can successfully do advisory! You can provide these services more efficiently with the right tools. Find a solution that supports you in the two main steps outlined above.

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