Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/460060
February 2015 • www.CPAPracticeAdvisor.com 31 FEATURE Many times businesses have a lot of information – financial and other – thrown at them that they don't really understand. By selling CFO services, accounting professionals can help their clients sif through the data and pull the important information and insights from it. "W hen businesses are overloaded w ith data, it's hard for them to get insights from it and take the necessary actions. It's the role of the CFO to use the data to translate it to what's relevant to the business and provide a business health checkup. Tat's the diference between a CPA and a CFO," said Dixie McCu rley, Pa r t ner, Tr usted CFO Solutions. It's important for accountants to remember that the value seen in clients' fnancial data is diferent for their cli- ents. W hile professionals can look at t he nu mber s a nd get a we a lt h of insight, their clients of ten just see numbers without fully understanding what that means for them or their business. "Accountants are like mechanics, and the fnancial data is kind of like a check engine light, when it comes on. Mechanics don't exactly tell you what tests they ran or what numbers they used to determine what's wrong with the car. Tey just tell you what they need to do. As accountants, we need to be the same way – learn to give our clients just the information they need and want to know," said McCurley. K no w i n g w h a t i n f or m a t ion i s important to your clients requires in- depth knowledge about each client. Accountants should perform regular self-assessments to ensure they are familiar with each client's current state of business. Professionals should go through their client list and identify where the business is in their lifecycle and what their top three goals are. Understa nd i ng t he busi nesses you're selling to is critical to your success. Tis is true for both new and current clients. For existing clients, you may know what their books look like, but do you have a clear picture o f t he i r b u s i n e s s l i f e c y c l e? I t 's important to properly assess their CFO needs. W hile some businesses only need a few CFO services or a part-time CFO, others may require a full-time position. "Accou nta nts ca n't just assu me because it's an existing client that they k now ever y thing or they w il l look foolish later. W hether it's a new or existing client, you still need to scope out the business needs and expecta- tions," said John Wooldridge, Prin- cipal, ClifonLarsonAllen LLP. Te best way to fnd out what clients need is to ask. Ofer free consultations to existing and new clients to discuss the current state of their business and their needs. Use the meeting to focus only on their business – what are their goals, fears, strengths, weaknesses, etc. Ask questions that will pull informa- t ion f rom t hem a nd ref ra i n f rom "selling" or pushing your services and business on them. "Accountants already have to push a lot of compliance and audit informa- tion on clients. You can change the dynamic of the conversation by talking to clients about their business and other things they want to talk about," said McCurley. "Ofering free consulta- tive services also helps clients open up by taking the focus of of paying you. Te thought process shifs from, 'We don't want you here because you're by the hour,' to clients wanting you to be a pa r t of t he f i na nc ia l process . It enhances the client relationship a lot." Once you've met w it h cl ient s, you' ll have a clearer picture of the amount of time that will be spent on providing CFO services, as well as their expectations of you. Make sure you're clear on which meetings they want you to atend and how ofen, as well as how ofen they expect you to visit their ofces and when it's okay t o w o r k r e m o t e l y. N o t c l e a r l y defning the expectations and duties upfront could lead to you spending more time than anticipated or what you're geting paid for. Once you make the decision to sell C F O s e r v i c e s , i t 's i m p o r t a n t t o remember that you aren't just doing compliance work for clients anymore. Te key to successfully selling these services is to align your frm with your clients' business model. Y ou already provide accounting ser- vices to your clients, but you want to provide them with more – a com- plete package of fnancial services. Providing CFO services is a great way to enhance the oferings you already provide while helping clients make sense and take action on the information they have on their business. IT'S THE ROLE OF THE CFO TO USE THE DATA TO TRANSLATE IT TO WHAT'S RELEVANT TO THE BUSINESS AND PROVIDE A BUSINESS HEALTH CHECKUP. How to Sell CFO Services By Taija Jenkins, Assistant Editor CLIENT ASSESSMENT QUESTIONS: How long have they been in business? What are their goals? Where are they in their business cycle? What do they want to do to grow their business, i.e. ramp up sales or staff? What is their budget?