Are you looking to accelerate your accounting firm’s growth through diversified income channels? Many firms find that their traditional business advisory services need to perform better, with stagnant revenue growth and slim profit margins. Successful diversification into business advisory services can often feel elusive. With increasing pressure on fees for compliance and transactional services, now is the time to act rather than hope for change.

In this blog post, we’ll explore how to develop a business advisory division that drives sustainable and accelerated growth for your accounting firm. By focusing on the right structure, infrastructure, engagement, and delivery models, your firm can create a robust, diversified income model that meets your client’s evolving needs.

1: Assess Your Current Business Model

Before diving into diversification, it is crucial to assess your current business model. Identify the strengths and weaknesses of your existing services and understand where the gaps and opportunities lie. This assessment will provide a solid foundation for developing a diversified income strategy that complements and enhances your existing services.

2: Define Your Advisory Services Offering

The first step in creating a diversified income model is clearly defining what business advisory services your firm will offer. Consider the following areas:

Financial Planning and Analysis: Offering clients insights into their financial performance and helping them make informed decisions.

Strategic Business Planning: Guiding clients through the process of setting and achieving long-term business goals.

Tax Advisory: Providing specialised advice on tax planning and compliance.

Risk Management: Helping clients identify, assess, and mitigate risks that could impact their business.

By focusing on these areas, your firm can provide value-added services that go beyond traditional compliance work.

3: Build the Right Infrastructure

Successful diversification requires the right infrastructure. This includes investing in technology that supports your advisory services, such as:

Data Analytics Tools: To provide in-depth insights and reports.

Customer Relationship Management (CRM) Systems: To manage client interactions and streamline communication.

Cloud-Based Accounting Software: To enhance collaboration and efficiency.

By implementing the right tools, your firm can deliver high-quality advisory services and improve client satisfaction.

4: Develop a Skilled Team

Your firm needs a team with the right skills and expertise to offer exceptional business advisory services. Invest in training and professional development to equip your team with the knowledge they need to excel in advisory roles. Consider hiring specialists in areas such as financial analysis, strategic planning, and risk management to strengthen your advisory offering.

5: Engage and Educate Your Clients

Client engagement is key to the success of your diversified income model. Educate your clients about the value of business advisory services and how they can benefit from them. Use case studies, testimonials, and real-life examples to demonstrate the impact of your advisory services on other businesses.

Communicate regularly with your clients to understand their needs and challenges and tailor your services to meet those needs. Building solid relationships with your clients can position your firm as a trusted advisor and partner in their success.

6: Implement a Scalable Delivery Model

Your business advisory services need to be scalable to achieve sustainable growth. Develop a delivery model that efficiently serves a growing number of clients without compromising on quality. This may involve standardising processes, using technology to automate repetitive tasks, and creating templates for reports and presentations.

By implementing a scalable delivery model, your firm can handle the increased demand for advisory services while maintaining high service delivery standards.

7: Measure and Monitor Performance

Finally, it’s important to measure and monitor the performance of your diversified income model. Set clear goals and KPIs for your business advisory services, and regularly review your progress. Use client feedback, financial metrics, and other data to evaluate the effectiveness of your services and make adjustments as needed.

By continuously monitoring and improving your diversified income model, your firm can achieve long-term success and accelerated growth in the business advisory space.

Developing a diversified income model is essential for the growth and sustainability of your accounting firm. By focusing on the right structure, infrastructure, engagement, and delivery models, you can create a successful business advisory division that drives revenue growth and meets the evolving needs of your clients. Now is the time to act and position your firm for a prosperous future.

Mark is presenting a session at our October Young Guns Workshop on developing a business advisory divisional approach with the right structure, infrastructure, engagement, and delivery models to achieve sustainable, accelerated growth. Find out more and register here.