How women can confidently and successfully build an advisory practice

Change is not easy. That’s why transforming the business model to advisory can be scary for some professionals. The reality is that a growing number of women in the profession are breaking through and seeing the rewards.

Another example is Alicia Shaul of Shaul & Associates PLC, also featured in the women in advisory practice blog mentioned previously. Shaul said she grew tired of the overwhelming workload during the tax season and decided to move her practice away from a compliance-focused shop. But Shaul admitted that moving to an advisory practice was “a big leap of faith.”

If you need a confidence boost to kickstart your advisory journey, here are seven best practices from women who’ve been there.

1. Identify your clients’ needs

Think about the common pain points your clients have. What do you hear yourself saying repeatedly? What questions do you answer multiple times for your customers? What are the typical “misses” your clients experience?

According to Butler, don’t look for the hardest, most unique situations to resolve — focus on helping the masses in a duplicatable way. This method allows you to create standardization in terms of resolving client issues.

“When you can use these standardized tools numerous times and get compensated for doing it, this creates the win-win scenarios we get to feel good about because we are making a difference for our clients,” said Butler. “There are so many opportunities to help business owners outside of compliance work. You just need to take the time to have the relationship that fosters the advisory model.”

Taking this approach helped Erin Heath, CPA and owner of Erin R. Heath, find success. Heath, featured in the blog series as well, said that before she shifted to an advisory practice, she “hadn’t really sat down and [looked] at my client base because I was so busy.” Once she did, her initial thought was that her clients were all farm and ranch businesses — but upon closer inspection, she saw that government entities and non-profit agencies were also part of her business.

In her move to advisory, Heath strived to make sure she understood clients’ needs and what services she should offer.

Another example is Brittany Lanphier of Lanphier LLP. Lanphier, who said that having a model that has standardized and streamlined their processes has given the firm the resources to deliver the kind of advisory services needed efficiently. Today, her ideal client is a relatively small owner-manager business with fewer than 100 employees that doesn’t have a CFO.

“It’s really been about taking the more basic principles that impact everyone who’s in business, basically, and creating a process and a system by which we just deliver that consistently to them,” Lanphier said.

2. Be committed and transparent

If you’re a sole practitioner, be committed to change. If you have staff, ensure they buy into and support the shift to advisory. Then, it is essential to keep the lines of communication open and be transparent with both staff and clients.

“I have had firms tell me they can ‘feel’ the difference between working with a client that has been onboarded into the firm with advisory services and maintenance packages versus a client that has been with the firm prior to implementing an advisory model,” Butler said, adding that this contributes to transparency in relationships. Such transparency can include upfront pricing, clear and concise scope of services, expectation settings in advance, exchange of knowledge and information, and a working relationship toward common goals.

Echoing the sentiment, Shaul said, “Effective advisory services really come down to communication and confidence. Clients will not buy into those services unless I have.”

3. Focus on your strengths

Focus on what you know and what you’re good at. Ask yourself what you do well. Do you have knowledge within a specific area you haven’t leveraged yet?

“I would encourage women who are thinking of adding advisory services to start by thinking about how they provide the most value to their client base. Not to get hung up on, ‘I don’t know absolutely everything about everything. Or I need to have these specific new services,’” said Sobania. “Don’t focus on what you don’t know. Focus on what you’re good at because you’re likely offering a lot of advisory services already, but just for free. So, [it’s] thinking about utilizing that knowledge and expertise and turning it into an engagement for your client.”

4. Automate compliance work

Tax compliance processes are uniquely positioned to be automated as they comprise a network of patterns like standardized forms and prior-year data. Professionals can reduce or even eliminate data entry through scan-and-populate tax software and the ability to automatically verify optical character recognition (OCR) source document data.

By incorporating tax software that utilizes AI and machine learning, your firm can automatically detect discrepancies, provide an audit trail, and even identify tax-saving opportunities and business insights for your clients. You can redirect all the time you save toward building a strategic business plan and deepening those all-important client relationships.

5. Leverage scalable resources

Don’t overlook the importance of having the proper tools and resources to provide successful advisory services. Implementing a content and consulting solution enables your firm to build a scalable advisory services model and standardize processes.

When looking for the right tools, resources, and coaching, consider a comprehensive solution that delivers the following:

• Industry-relevant content and tools, including videos, proposal and email templates, pricing calculators, PowerPoint presentations, checklists, etc.
• One-on-one coaching sessions with a dedicated business consultant
• Access for all your staff to a comprehensive online learning plan to enhance the implementation
• Ongoing coaching and collaboration with your peers
• Access to CPE-qualified, advisory-focused webinars
• An online collaboration tool for member communications and a means for connecting with other members easily
• A calendar of in-person and virtual events throughout the year to keep you actively focused on your advisory journey
• The ability to ascertain additional one-to-one coaching if needed to further your success

6. Shift to value-based pricing

When shifting your practice to an advisory-based model, it is vital to fully understand the value of your services and price them accordingly. If your firm still bills by the hour, it is time to consider moving to a value-based pricing structure.

“I’m a huge proponent and I think it makes the most sense to do value billing … especially when you are thinking about creating that advisory relationship and making sure that, number one, you are being compensated for your expertise and, number two, your client knows exactly what they are getting from you,” Sobania said.

In the aforementioned Thomson Reuters tax professionals report, many firms indicated they plan to expand the range of pricing options available to clients in the coming year. Across the board, there is a clear trend toward introducing a wider variety of pricing options to meet client demand.

7. Be selective

When providing advisory services, it is crucial to recognize that some clients — whether existing or prospective — may not be a good fit for your firm. In other words, be selective.

“Being selective truly is the first step in implementing an advisory model,” said Butler. “Working with the right clients increases productivity, staff morale, quality of service, feeling appreciated, and gratification in doing something good.”

Butler added that reducing your book of business provides the vehicle to open the door for deepening client relationships because you won’t be overwhelmed with juggling multiple clients — “You are afforded the opportunity to work with clients you enjoy while doing more of the work that feeds your why.”

Tips for attracting — and retaining — top talent

Today’s job seekers are looking for independence, opportunities for growth, and a sense of purpose in their work.

Attracting and retaining top talent is critical as you build your advisory practice. Here’s how to do it — even amidst a challenging labor market.

1. Understand employee motivations

With an emphasis on meaningful contributions and flexible work arrangements, an advisory services model in and of itself becomes a magnet for talent. By leveraging technology and endorsing remote work, firms can attract and retain top-tier professionals even in a competitive market.

Providing your staff with autonomy fosters loyalty, trust, and increased productivity. Further, by automating tax processes, you can bridge talent gaps and enable staff to shift their time to lucrative advisory roles. This sought-after guidance helps clients while empowering your staff to leverage their expertise effectively.

2. Expand your talent pool

A pivotal shift for firms is broadening their hiring criteria beyond the three-to-five-year experience bracket. Embrace interns, recent graduates, individuals from diverse academic backgrounds, and part-time professionals. Consider recent graduates proficient in data analytics or science, technology, engineering, and mathematics (STEM) disciplines that align well with tech-savvy firms.

By providing essential training and covering educational expenses for certifications, smaller firms can amplify their candidate reach. This approach also underscores a commitment to nurturing talent at every career stage.

3. Showcase your unique value proposition

A shift from being a compliance-focused firm to one encompassing varied advisory skills — spanning business development, data analytics, technology, and strategic planning — reflects a wider evolution in accounting, and you should promote it to both prospective clients and potential new hires.

Embracing technology and fostering collaborative management practices can give your firm the upper hand in talent acquisition. Prioritizing hands-on training, educational support, community engagement, and cultural initiatives can tip the scales in your favor. Offer younger professionals avenues to specialize, engage directly with clients, and contribute meaningfully to business growth. This prioritization can truly set your firm apart in the battle for top talent.

With a more engaged staff, you can shift your engagement strategy for new clients based on the value your firm brings to their business. You can gear new client services toward identifying end goals, setting the path toward those goals, and guiding your clients down each step of that path.

Technology can also help you analyze trends and support your clients with the insight that assists their businesses in growing and thriving. Because you and your staff will gain a deep understanding of the expertise your customers genuinely need, you will empower your firm to identify additional opportunities that further strengthen these relationships and boost revenue.

When you make the move to advisory services, you can be more selective of the clients you serve, and your referrals will more accurately set expectations for your future clients. Ultimately, clients will see you as a strategic partner versus a compliance processor — a powerful combination that engages staff, strengthens client relationships, and improves your bottom line.

Are you ready to make the shift to advisory?

Advisory services are one of the most significant growth opportunities for today’s firms — and women practitioners who are embracing these higher-value services are realizing substantial benefits both in terms of job satisfaction and quality of life.

For more insight and personal stories from women who’ve built successful advisory practices, check out our Spotlighting Women in Advisory Practice blog series.

When you’re ready to shift to advisory services, Practice Forward offers proven methodology, guidance, and content solutions that accounting firms like yours need to develop and implement an approach to engaging clients.