One key question I seem to get asked regularly is; what\u2019s wrong with being a compliance practice and why should I add new services when we are already flat out? Both good questions with limited growth potential. Let\u2019s consider a few key points.<\/p>\n
Less billable hours & increased competition<\/strong><\/p>\n While compliance has been the main practice income since, well forever, software improvements meant that the number of errors in compliance data is potentially<\/em>diminishing.<\/p>\n Features such as automatic coding rules and bank feeds mean human errors are slowly being eroded \u2013 which is a good thing. Accountants can also access their clients\u2019 data directly at any time using cloud accounting.<\/p>\n However, there\u2019s a flow-on effect in the practice. Accountants are now able to make adjustments to company files during the year \u2013 not just when they see their clients \u2013 and there are potentially fewer billable hours throughout the year.<\/p>\n Add to this the pressure of competition, and the idea of offering financial advice as well as compliance is a more attractive proposition than compliance-only. It\u2019s clear why practices are under increasing pressure to expand their service offerings. This has been happening overseas for a while now.<\/p>\n Practices need to implement a \u201cwhole of practice\u201d business advisory strategy. It\u2019s no good just dipping your toes in the water. Becoming a business advisory practice requires a major commitment, but the payoff can be immense.<\/p>\n