Perhaps the response to that question is “no.” The underlying issue is that many accountants do not perceive themselves as part of a service industry. Rather, they regard their role in accounting as indispensable for business operations. This sense of indispensability leads them to assume that clients will naturally gravitate towards their firms.
This mindset fosters environments akin to grist-mill firms, predominantly focused on compliance work. Such a focus generates minimal revenue for firms with far greater potential. Compounding the problem is the fact that numerous other firms willingly entrap themselves in this same compliance-centric approach. Consequently, the primary mode of competition becomes lowering prices, which inevitably diminishes profit margins further and undermines financial success.
Excellent client service
The forward-thinking firms, particularly those whose owners and partners are enjoying lucrative lifestyles and exceptional vacations, are the ones actively transitioning from traditional compliance services to becoming comprehensive financial advisory establishments. These firms focus on equipping their clients with essential tools to enhance both personal and business finances.
It is evident that as a firm owner, you would aspire to shift your emphasis from mere compliance tasks to offering sophisticated profit analysis, pricing strategies, detailed financial goal assessments, among other high-value services. However, this transition poses a challenge for start-ups relying on compliance work to maintain operations during their early stages.
To overcome this hurdle, adopt a proactive approach by engaging with your clients regularly rather than waiting for them to initiate contact. Make it part of your routine to reach out via phone or email at least once a month. This regular communication will not only demonstrate your commitment but also provide opportunities to support clients’ ongoing needs effectively.
Even better though is if you’ve scanned their numbers and can offer an improvement – “I’ve looked at your numbers and it appears that you could easily raise your prices for Product X by Y dollars. Even if that turned some of your customers off you’d have to lose Z of your regulars before this would begin to hurt you.”
With a single insightful analysis, you have achieved three significant milestones:
Firstly, your firm has transitioned from merely a tax preparation service to a pivotal business partner that has enhanced your client’s bottom line by substantial amounts each month. This improvement enables them to accelerate investments in new equipment or expand their workforce earlier than anticipated.
Secondly, by demonstrating your proficiency in financial advisory services, you have piqued your clients’ interest in exploring premium offerings they might be missing out on.
Thirdly, you have conveyed genuine care for your clients; they are more than just another account.
Statistics indicate that up to 40% of consumers switch brands or services not due to pricing concerns but because competitors provide superior customer experiences. Moreover, an impressive 86% are willing to pay more for enhanced service quality.
Increasing value
Establishing this new relationship with your clients not only enhances their perception of your value but also elevates their worth to you. Clients who previously engaged solely in basic compliance tasks are now increasingly investing in your premium services. This strategic shift allows you to earn more for the same amount of work, particularly if you delegate compliance responsibilities and focus on financial advisory roles.
Furthermore, this evolution presents an opportunity to curate a highly desirable roster of top-tier clients. No longer will you be compelled to chase after every individual requiring tax services. Instead, you can refine your client base to include those whom you genuinely enjoy working with and who are willing to pay for higher-value offerings.
By streamlining your client list while simultaneously boosting revenue from premium services, you’ll achieve both efficiency and increased profitability for your firm.
As always, satisfied clients will naturally advocate for you. High-profile clientele tend to have networks that include potential future clients of similar calibre. Success breeds success.
Additionally, maintaining ongoing communication with your clients provides invaluable insights into areas where your firm excels, areas needing improvement, and the common financial challenges faced by individuals in their professions or life stages. These conversations effectively enable your current clients to help shape an ideal service model tailored precisely for top-tier clientele.
By leveraging these recommendations, you can develop a pricing structure and service offerings specifically designed to attract elite clients aligned with your firm’s vision.
The critical element here is proactivity. Do not passively wait for the ideal client to appear at your doorstep or continue competing solely on compliance work against other firms. Instead, focus on cultivating relationships with preferred clients who will inherently contribute to expanding your high-quality client base.
