Just as the average small business may not fully understand cash flow, many small to medium-sized accounting firms fall into the trap of thinking that small business clients are focused more on price than value. Mark Wickersham, author of Effective Pricing for Accountants, suggests that if a small to medium-sized enterprise (SME) client thinks you’re charging too much, then the real issue isn’t the cost. The real problem is that the business isn’t seeing or properly understanding the value of what you’re providing. This difference, kind of like knowing how cash flow is different from profit, becomes even more important when you think about the value of business advisory services.
Smart strategies for better business
The best way that accountants can truly elevate their services is by adding value for their small business clients. One impactful way is through friendly and personalized business advisory services, including cash flow challenges. Beyond just numbers, these services offer practical insights that shape a business’s success. By being hands-on and proactive, accountants become more than just financial advisors; they become trusted partners, guiding businesses through ups and downs. Focusing on real-world issues, such as optimizing cash flow, not only strengthens client relationships but also showcases the accountant’s commitment to their client’s overall well-being, making a genuine difference in the business journey.
Choosing the right advisory services
Take a moment and put yourself in a small business’s place. If you were them, what are some of the questions you’d want your accountant to answer? What problems would you like your accountant to help you solve? Survey after survey puts cash flow firmly at the top of every small business’ priority list. As does the resulting failure rate of 60% or higher when cash flow issues aren’t addressed. Not to mention how cash flow affects all other areas of business performance, including the ability to secure funding and build solid relationships with vendors.
Helping SMEs understand the advisory value
Helping small businesses understand the value of business advisory services, like cash flow consulting, is about making things simple. When we talk about cash flow, it’s basically looking at how money moves in and out of a business. Explaining why this matter is key – it directly affects how healthy the business is financially. Even if accounting terms seem tricky, everyone gets why having positive cash flow is important. So, by showing how good cash flow management keeps the financial heartbeat steady, accountants help small businesses see how business advisory services make a real, clear difference in their success.
The benefits of cash flow consulting as a business advisory service
Explaining the benefits of cash flow consulting as a business advisory service is like turning on a light for small businesses. When we help them understand how money moves in and out, especially with tools like QuickBooks Online (QBO), everything becomes clearer.
Cash flow consulting, using forecasts and analysis, takes this financial data and makes it super useful. As an accountant, you know that things like accounts receivable and payable really impact cash flow. When you help businesses see this, you’re offering a kind of value that sets you apart.
It’s the knowledge you already have. Thanks to the automation stemming from the cloud, artificial intelligence, and machine learning, you can spend less time on data entry and more time applying the specialized training and skills you worked so hard to acquire.
SMEs want their accountants to be advisors
According to Accounting Today, 78% of small businesses want an accountant who’s a trusted advisor. In fact, this need ranked 10% higher than feeling that services were priced affordably.
Like Wickersham’s argument for creating value instead of focusing on a price point, this survey found that the biggest challenge for accountants was showing the businesses the actual value in working with an accountant. In other words, they don’t want someone to simply oversee their accounting software, they want a partner who can help them make sense of their financial data.
Simplifying Cash Flow Advisory with Forwardly
Creating cash flow forecasts and providing visuals like charts and graphs used require a considerable amount of time and effort, making it a challenge to not only price but scale advising businesses on cash flow as part of your firm’s business model. Fast forward to today, when you have sophisticated cash flow forecasting tools offered by Forwardly. All you have to do is connect a business’ QBO or any other accounting software.
With a few quick clicks, you’ve got a full analytics dashboard that includes daily and monthly cash flow forecasting, in-depth breakdowns of accounts receivable and payable, comparisons of income and expenses as well as powerful performance insights up to 12 months.
The future of small business accounting
Data entry and repetitive tasks are going the way of the dodo. This means accountants have the unique opportunity to leverage the specialized skills they’ve worked so hard to achieve. Face it, you didn’t spend all that time studying accounting so that you could reconcile expenses day in and day out.
While sensational headlines may suggest robots will replace accountants, there’s no need to fear the bots. Automation, a key accounting trend, enhances your capabilities and empowers you to fulfil your potential even more effectively.
Use Forwardly’s powerful cash flow forecasting and instant payments to help SMEs make sense of the day-to-day factors that affect business financial health. Leverage this knowledge even further by scheduling regular conversations about cash flow to help clients make better, data-backed decisions. Build the future of your business today. Lay the foundation of your cash flow consulting by learning more about Forwardly.