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Accounting

4 financial consulting services accounting firms should quickly add

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Many accounting firms provide invaluable services that go far beyond tax prep and financial reporting. For small to mid-size accounting firms that want to explore other revenue streams, accounting consulting services can be a great place to start.

Many CPAs offer consulting services alongside regular tax preparation, which helps create additional revenue for the firm and provides additional support for clients.

Why it’s crucial for small to mid-size accounting firms to offer other services

Offering more services than just tax preparation is beneficial because it ensures an accounting firm has more cash flowing from different areas. Plus, it’s not just relying on tax preparation, which is generally quite seasonal and dependent on pre-established tax deadlines.

Other offerings such as bookkeeping and payroll are year-round services that could boost your firm’s profits and diversify income.

But if you want to become more of an advisor for your clients, consulting services are vital to developing a supportive working relationship.

4 year-round services to create consistent cash flow

1.      Bookkeeping

All businesses need accurate record-keeping to claim expenses and calculate tax accurately. While some companies are happy to take this on themselves, others would rather outsource it to an accounting firm. Clients looking for both accounting and bookkeeping help will more likely sign up with a firm that provides both.

2.      Financial compliance

Finance and tax are heavily regulated and can be a lot for businesses to manage. That’s why some opt for external assistance from a consultant to ensure that everything they’re doing is compliant with the rules.

An accounting consultant can help businesses remain compliant with all the relevant regulations and suggest areas for improvement.

3.      Audit management

Another additional service you could supply is audit management, which helps businesses stay on top of all financial regulations.

Rather than risking an IRS investigation one day, some companies like to take a proactive approach. Conducting internal audits will ensure that everything is above board and accounted for. This helps the business manage risk and ensure transparency when filing taxes.

4.      Financial health evaluation

Generally, accountants don’t provide important financial advice as they focus predominantly on tax preparation. However, a thorough financial health evaluation could be another key offering as a consultant.

This service looks in depth at the company’s current assets and liabilities, financial forecasts, and profitability analysis. Focus on suggested areas could improve a business’ financial health going forward.

Building a well-rounded tax and accounting practice

With additional services, your accounting firm can protect profitability and ensure a constant income stream without having to rely too heavily on traditional services like tax preparation.

Besides profitability, adding services can also result in a well-rounded service offering for your clients, as today’s clients expect more from their CPAs.

For more guidance on managing your tax and accounting firm, take a look at Practice Forward, which helps you enhance your firm’s advisory services, and UltraTax CS for all your firm’s compliance solutions.

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