CPA Practice Advisor

FEB 2015

Today's Technology for Tomorrow's Firm.

Issue link: https://cpapracticeadvisor.epubxp.com/i/460060

Contents of this Issue

Navigation

Page 32 of 35

February 2015 • www.CPAPracticeAdvisor.com 33 FEATURE t he accou nta nts usua l ly say t hey don't have an MBA either, and they don't necessarily know the ins and outs of all the industries their clients serve. So how do accountants ofer strategic/trusted advice that keeps their clients on track, but doesn't mean going back to get an MBA? Here are fve simple steps to help you ofer strategic fnancial advising services: 1 CHOOSE 3-5 FINANCIAL KEY PERFORMANCE INDICATORS AS A STARTING POINT FOR YOUR CLIENTS . Depending on t hei r i ndu st r y, t h i s w i l l v a r y. For e x a mple, a ret a i l shop ow ner may want to monitor year- over-yea r revenue g row t h, g ross m a rg i n, prof it- eat i ng produc t s/ revenue streams, and cash on hand. 2 G I V E Y O U R C L I E N T S V I S U A L R E P O R T S R E G U L A R L Y T H A T T H E Y C A N E A S I L Y U N D E R S T A N D . H e l p them by presenting critical fnancial information in simple visual charts and graphs. A nd always show them how t hey a re doi ng (ac t ua ls) v s. what they thought they were going to do (budget & forecast), and how t hey've done i n prev ious per iods ( W o W , M o M , Q o Q , o r Y o Y g r o w t h). M o s t s m a l l b u s i n e s s ow ners' eyes w ill glaze over when you send them complicated reports and spreadsheets, and they are afraid to admit they don't know what they are reading, so be the hero and give them reports that make sense and help them feel empowered to make informed business decisions. 3 M O N I T O R I N DU S T R Y B E N C H M A R K S A N D C O M P A R E T H E M A G A I N S T T H E K P I 'S Y O U A R E H E L P I N G Y O U R C L I E N T S T R A C K . T he se c ompa r i son s w i l l he lp you ver y quick ly identif y areas where your client is doing beter - or worse than their peers, giv ing you some easy qu ick "w i ns" w it h you r st rateg ic advising services. For example, one accountant told me a story where he took on a new cl ient i n t he lega l advising space, yet he had never had a client in this industr y before. By utilizing industr y benchmarks, he could advise his client that her proft metrics were of from her industry's. 4 HELP YOUR CLIENTS P U T T O G E T H E R A B U D G E T A N D F O R E - CAST. Not only will this g ive t hem goa ls to t r y and achieve through the next 12-24 months, but it will also force your clients to actually communicate to you the assumptions they have about their business, giving you the chance to quickly point out missed assump- t i o n s w h e n y o u c o m p a r e t h e i r budget and forecast to actual results. 5 TAKE ADVANTAGE OF SAAS TOOLS THAT WILL P U L L A C C O U N T I N G DATA AUTOMATICALLY (AND SECURELY FROM ANYWHERE) INTO A SMALL BUSI- N E S S D A S H B O A R D F O R Y O U R CLIENT. It's important for your cli- ents to know the fnancial health of their business from any where and at a ny t i me. T ha n k s to cloud-based t e c h n o l o g i e s l i k e Q u i c k B o o k s Online and LivePlan, accountants and small business owners can easily engage in f inancia l plann ing and tracking in real-time. For accountants, it can be chal- leng i ng to a sser t you r relev a nce year-round, especially when needs can vary drastically from one client to the next. But if you follow these 5 tips, you' ll surely impress your cli - ents and secure their business for the long haul. Sabrina Parsons is the CEO of Palo Alto Sofware.

Articles in this issue

Links on this page

Archives of this issue

view archives of CPA Practice Advisor - FEB 2015