How to launch a successful tech advisory practice
– Home of the blog
For many accounting firms, tax preparation forms a cornerstone to their business. However, many forward-looking firms are increasingly focused on growth through not only traditional compliance but through an advisory service model that incorporates value-based pricing, strategic client expansion, and technology integration.
According to a recent survey of 180 tax professionals at accounting firms, 88% of respondents indicate that their firm currently offers tax advisory services. This is a large number that supports the idea of advisory services becoming mainstream. While the future is bright for these firms, many are facing challenges in managing new technology, acquiring talent, and meeting client’s rising expectations. This is where a strategic approach to advisory specialization and advanced technology can offer significant opportunities to launch a successful advisory practice, even amid ongoing industry challenges.
Jump to |
The role of tax preparation in the path to offering advisory
For most firms, tax preparation is foundational to their overall firm strategy. According to Thomson Reuters research, many accountants say new tax preparation clients help drive cross-sell opportunities, opening the door to advisory services — but some are unsure of how to seize this opportunity.
Introducing advisory services to your clients requires a strategic and thoughtful approach. Consider engaging clients who have expressed an interest in strategic planning or have complex financial requirements. These clients are more likely to see the value in advisory.
During these conversations, it’s important to clearly explain how advisory services can help them achieve their business goals and improve their financial situation. Be specific and show them the potential outcomes that are unique to their situation. You may even want to consider offering an introductory advisory session to showcase the benefits and demonstrate the impact of your expertise.
The importance of value-based pricing
Transitioning to value-based pricing is a critical step in making the shift to advisory services. This ensures that you are charging for the value you deliver, not the time you spend. Value pricing is subjective, and it varies from client-to-client because it depends on what clients value most and how much they are willing pay for that. Are you giving away tax advice free of charge? If the answer to these questions is yes, it may be time to move away from a compliance-focused approach and toward an advisory services business model that eliminates billable hours and focuses on the value you provide your clients.
By supporting more than just tax returns, value-based pricing can increase revenue while building deeper, more sustainable client relationships.
How to leverage technology to support advisory services
According to Thomson Reuters research, spreadsheet software, document management systems, tax research platforms, and client communication tools are the most common technologies used within the tax practice. Even with the latest technology, nearly half of accounting firms still spend too much time preparing tax returns and gathering inputs from clients. This reduces the manual workload and improves accuracy. Alongside an AI-powered tax research solution, even junior staff are empowered to answer complex client questions confidently and accurately.
By shifting time from manual work to more engaging, high-value activities, your firm is not only better positioned to meet rising client expectations but also attract and retain top talent who are looking for more meaningful work and deeper professional development opportunities.
Moreover, AI-powered tax technology enables data analytics that offers personalized insight into client financials. From identifying trends to proactively detecting anomalies, AI-powered tax technology not only saves time and reduces costs but also enhances the level of support you can provide to clients.
Practical steps to starting a successful advisory practice
With trusted methodology, guidance, and content solutions, Practice Forward can help your firm shift from a compliance-focused model to a successful advisory services approach that engages and sustains clients.
Through your Practice Forward implementation, you have access to over 160 tools, including proposal templates, pricing calculators, and checklists, paired with personalized consulting to help you:
Implement and execute a proven sales process
Identify and package your firm’s services
Develop a pricing strategy
Standardize business best practice advisory delivery
- Transition existing clients to advisory relationships
- Uncover client advisory opportunities
- By following these steps and leveraging the right tools and strategies, your accounting firm can successfully transition from traditional tax preparation to offering valuable advisory services. This shift not only enhances client relationships but also positions your firm for sustained growth and success in an increasingly competitive accounting landscape.
- For more information on how to transition to an advisory model, download our white paper, Building a competitive service structure, or request a free demo to get in contact with a Practice Forward representative.
