In this Accounting Advisory Services series, you’ll receive a guide to navigating five different buckets. This article digs deep into defining one of those buckets – Financial Advisory Services.
Download a PDF of “A guide to developing accounting advisory services”
The five buckets we are exploring within this series of financial advisor offerings are:
- Financial Advisory
- Process Advisory
- Apps Advisory
- Compliance/Forensic Advisory
- Successor Advisory
In my experience being on the road as a member of the Intuit® Writer/Trainer network, I have heard my peers’ concerns about offering Financial Advisory Services. As a whole, accountants have a fear of failure and in our line of work, it is in our nature to want perfection. However, it’s difficult to deliver perfection in an area we do not feel fully qualified for. I have told my staff that a “B” is not a passing grade. Our grade must be an “A” at all times. Therefore, a lack of clear understanding of capital markets and Financial Advisory Services makes us feel uncomfortable.
According to research, 20% of small businesses in Australia fail within their first year, with more than 60% failing within the first three years. Given this information, why doesn’t every business plan for success?
Success is not automatic. A small business owner (SBO) may have realised a niche with skilled employees and adequate resources to accomplish the task, so why do these same SBOs fail to create a business plan for success? What I have most often seen is that the SBO does not grasp the financial intricacies that facilitate long-term success. Most often, they too fear failure, have a lack of financial understanding, and are not sure where to start financial planning.
The business must act with intention and work within a plan that is not only clear but also achievable. Change takes time. Similar to starting or beginning a new habit, once you get results, you wish you had started sooner.
SBOs often feel adrift. Advisory services are about saving people and businesses. However, no amount of desire to save the people can be accomplished without first directly addressing the financial health of the company. A structure is only as strong as its foundation. Granted, no amount of coaching, advising or planning is a guarantee of success. It does, however, increase the likelihood the business owner will understand and more successfully navigate the challenges related to financial success.