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Business Perspective: Thomson Reuters

Future of accounting: Building the next gen accounting firm

| August 2020 Footnote

Editor's note: Updated July 28, 2020

You’re ready to take the next step to ensure longevity and be a part of the future of accounting. You want to build the next generation accounting firm — yours.

Transitioning your accounting practice to an advisory service implies offering a wider variety of services than you are currently. That can be accomplished in several ways. But whatever you do, it’s OK to start slow. In fact, make sure you do. Make the change by building incrementally from your current core.

The first step is to identify your current areas of expertise and core competencies. To move forward, you first need to know exactly where — and who — you are. Identify what you do well and what expertise you have that you are not currently using with your clients. Identify what types of clients, industries and organizations you serve and which ones you serve particularly well. Part of this exercise also includes assessing the skill sets of your staff members.

One approach to the advisory transformation process is to logically extend the range of services you provide. Take a matrixed approach that considers who your clients currently are and the nature of the services you currently provide. For example, if you offer estate tax planning services, maybe it makes sense to expand to related areas, such as elder care. Or, if you have several successful relationships with attorneys and financial advisers, consider expanding into estate planning or wealth management.

Another approach is more focused specialization where you assume an advisory and management role similar to that of a general contractor. This is beyond just providing referrals, which you probably do now. It means being the central point of contact and the filter and coordinator for information. You assume responsibility. This approach is less likely to increase your revenue, but it is likely to increase client loyalty.

The most practical approach may be a combination of the two: Expanding your expertise and the services you offer, while leveraging your growing network of professionals and drawing them into a more formalized cooperative.

Managing your new advisory-based workflow

A different kind of business requires a different management approach. You may also employ a new workflow and internal policies and procedures. Technology will also play a role. Consider these questions:
  • How will you price your advisory services? Should you bill hourly or value bill?
  • Do you need to review and adjust your liability insurance?
  • Do you have secure cloud-based storage to handle your growing volume of client data?
  • What is the most effective way to educate yourself and your staff and continue to learn?
  • Do you have the right communications infrastructure in place to keep you, your staff, your clients and your network connected?
Make a checklist for yourself. We’ve suggested some places to start, but in the end, only you know what needs to be done to reposition your business. Establish reasonable but firm deadlines for each item.

Taking the next step

Making the transition to an advisory business doesn’t have to be — and shouldn’t be — done on your own. A trusted partner who can provide the support you need to adapt and grow your business is an investment in your future. Consider a strategic relationship that offers integrated workflow solutions in addition to the guidance and support you need through the transition.

There is no such thing as an off-the-shelf, one-size-fits-all solution that works for everyone. Look for a comprehensive, integrated, consultative solution and service that is custom-designed specifically for you, and specifically to build, grow and enhance your unique practice.
 
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Thomson Reuters

Contact: Ila Kharbush, strategic relationships lead     
Phone: 1-734-388-3158

Email: ila.kharbush@thomsonreuters.com                      
Web: Tax.ThomsonReuters.com