Prioritizing the implementation of advisory services
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For accounting firm leaders and owners, the idea of transforming from a transaction-based firm to an advisory-centric one is appealing. Advisory services can result in stronger client relationships, better bottom lines, and a better work-life balance. Some firms are too overwhelmed to make this transition a priority, while others don’t know where to begin. But advisory services are more than just a trend–they’re essential for growth and sustainability in today’s competitive market.
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Common challenges of transitioning to advisory services
While the benefits of advisory services are clear, many firms face challenges implementing them effectively. Here are some common obstacles and how to overcome them. If your firm has been focused on compliance for many years, you may find it difficult to move away from this approach. Staff members may not yet see themselves as “advisors,” and clients may not expect or understand the value of advisory services.
However, by implementing a proven advisory roadmap and educating your team and clients on the benefits of advisory services, you can shift your firm’s role from processing numbers to providing strategic insights.
2. Feeling too busy to transition.
Many firms feel swamped by compliance work, especially during tax season, making it difficult to carve out time for strategic business model changes.
Consider starting small by allocating specific times for advisory projects, perhaps dedicating a day per month to focus solely on advisory services and gradually expanding as the process becomes more manageable. A structured advisory framework will also help your firm to implement changes step-by-step without overwhelming your team. Lack of structured pricing and service packages.
Advisory services require a different pricing model than traditional compliance work, and firms often struggle with getting a new service package up and running.
By leveraging predefined advisory service packages, you can seamlessly standardize offerings and communicate value to clients by leveraging predefined advisory service packages. Outline what each package includes, and price them to reflect the expertise and insight your team provides. This approach helps clients understand and appreciate the investment they’re making in your knowledge and experience.
4. Managing team alignment and buy-in.
Without team buy-in, any transition is challenging. Staff may be reluctant to take on new responsibilities, or unsure of their role in advisory service. Ask for their input on the structure of services and provide professional development opportunities so they can develop advisory skills. When the team feels ownership of the process, they are more likely to embrace it wholeheartedly.
The difference implementing advisory services can make
Once your firm overcomes the initial challenges, the benefits of advisory services become transformative.
Unlike traditional compliance work, advisory services allow firms to be compensated fairly for the strategic guidance they provide. Advisory fees tend to be higher than compliance fees and clients who value advisory services will often invest in these relationships. By focusing on clients who value your insights, your firm can achieve sustainable revenue growth and a stronger financial foundation.
From a work-life balance perspective, advisory services are less deadline-driven than compliance work, allowing your team to work at a more sustainable pace. Staff can build deeper and more meaningful client relationships with advisory work without the time pressures that come with tax season. This shift is not only beneficial to employees, but also helps to create a more positive workplace culture that makes it easier to retain and attract top talent. This leads to a deeper client relationship and, ultimately, more loyal clients. Moreover, when firms focus on providing advisory services, they can be more selective about who they work with, leading to a client base that aligns better with their values and goals.
Case study: Advisory in action
Lomness CPA, a Texas-based firm led by Katie Lomness, transformed from a compliance-focused practice to a profitable advisory-centered firm by adopting the Thomson Reuters Practice Forward methodology.
Initially constrained by low-dollar compliance work and resource limitations, the firm embraced advisory services in 2022 after attending a pivotal Partner Summit. Through structured client vetting, targeted service packages, and team alignment, Lomness CPA saw revenue grow by 55%, with advisory services yielding a 473% increase in revenue.
Operationally, the firm achieved improved clarity, efficiency, and employee satisfaction, fostering a culture of collaboration, work-life balance, and enhanced client experiences, solidifying its status as an innovative industry leader.
Why now is the time to transition to advisory services
The accounting landscape is changing rapidly, and firms that remain solely focused on compliance work risk being left behind. Automation and artificial intelligence will increasingly handle routine compliance tasks. This could reduce the demand for traditional accountancy services. Clients are seeking accountants that can provide data-driven insights in real-time to help them make informed choices. The demand for advisory services is high–and it’s only growing.
