Today, every CPA firm is looking to add value to its service offerings, provide more benefits to clients, and create new revenue opportunities. While traditional services like accounting, tax and audit are still necessary and profitable, accounting firms may be able to increase monthly revenue by up to 50% by offering strategic advisory services.
For many firm leaders, the question isn’t whether they should offer consulting and advisory services but which services to add to their menu.
Here are a few ideas to consider.
Cybersecurity advisory
With the increasing prevalence of digital transactions and data storage, cybersecurity has become a critical concern for businesses of all sizes.
According to a PwC survey of business executives, 40% cite more frequent or broader cyber risks as a serious threat to their organizations.
CPA firms are uniquely positioned to offer cybersecurity advisory services due to their reputation as trusted advisors and attention to detail.
Your IT team is already adept at protecting the firm from cyber-attacks. Look for opportunities to take that expertise to clients, helping them detect areas of vulnerability and make recommendations to close potentially weak areas.
Some potential services include:
Helping clients identify vulnerabilities and implement strategies to mitigate risks.
Assisting businesses in understanding and adhering to cybersecurity regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
Developing strategies for clients to respond effectively to data breaches.
Financial planning and analysis (FP&A) consulting
FP&A consulting goes beyond traditional accounting to provide deeper insights into financial data, helping clients optimize performance and strategic decision-making. By offering these services to your clients, you can provide a roadmap to reach their objectives and help them measure and manage progress toward their goals.
According to an IBM report, companies that engage in effective data analysis are 178% more likely to outperform their competitors in terms of revenue and profitability.
Some potential services include:
Working with clients to predict future financial outcomes and plan accordingly.
Using advanced analytics to assess the business's financial health and identify improvement areas.
Assisting clients in understanding the potential impacts of different business decisions.
Sustainability and ESG Consulting
Environmental, social and governance (ESG) issues have become increasingly important, and businesses are looking for ways to incorporate sustainable practices into their operations. CPA firms can educate their clients about the importance of this emerging area and help them incorporate ESG initiatives into their data-gathering and reporting processes.
Research from McKinsey shows that companies that incorporate ESG priorities into their growth strategies tend to outperform their peers.
Some potential services your firm can offer include:
Assisting clients in developing reports that disclose their environmental impact and sustainability practices to stakeholders.
Helping businesses integrate ESG factors into their strategic planning and operational processes.
Ensuring that clients meet industry standards and regulatory requirements related to sustainability.
Digital Transformation Consulting
Digital transformation involves integrating digital technology into all business areas, changing how the organization operates and delivers customer value.
Many firms were undergoing digital transformation before the pandemic, and office closures and social distancing mandates forced them to accelerate those efforts. Now, firms can use what they have learned to support their clients through similar transformations.
According to Deloitte, 85% of CEOs recognize that being a digital business is essential for success. CPA firms can support these transformations through strategic advisory.
Some potential service offerings to add to your firm include:
Guiding clients through the selection and integration of new technologies.
Assisting organizations in managing the human aspects of change related to digital transformations.
Helping clients leverage data effectively for decision-making and improved business performance.
As firms automate traditional services like accounting and tax, integrating additional consulting and advisory capabilities presents a valuable growth opportunity. By adopting these innovative services, your firm can enhance its menu of services and position itself as an indispensable partner to clients.
Embracing these changes requires firms to invest in the necessary skills and technologies to deliver high-quality, relevant services that meet their clients' evolving needs. Remember, the first step is often to decide who can help you get there. Start thinking about who in your firm has expertise in these areas or would like to develop it, and give them the time and resources to move forward.
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