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Take control of your future: How women in advisory practices are succeeding

October 01, 2024

22 min

Building a successful advisory practice involves leveraging your strengths, drawing from your experiences, and deepening relationships with clients. Women, in particular, are uniquely positioned to embrace this meaningful and lucrative opportunity.

Today, according to accountant and auditor information from DATA USA, women make up almost 60% of accountants and auditors in the United States — and have made up the majority of accountants and auditors since 2020. Despite these numbers, recent data suggests a lack of confidence in pivoting from compliance-based work to more profitable advisory services.

For women who already deliver excellent compliance services, transitioning to an advisory focus can enhance your firm’s value and open the door to sustainable revenue throughout the year. For insight into taking this leap, we sat down with several women who’ve successfully embraced advisory services — and discovered they have loads of wisdom to share.

From ups and downs to everything in between, you’ll get firsthand insight into how the shift to advisory services has enabled these forward-looking women to meet increasing client demands, boost revenue, and create the firms of their dreams.

So, no matter where you are in your accounting career — whether you’re an entry-level staff member or preparing to take on a senior partner role — these personal stories will surely spark your entrepreneurial spirit and help you succeed in making the shift to advisory.

Trends impacting the accounting landscape

To fully understand the need for advisory services, it’s essential to take a look at the overall tax and accounting landscape. From talent shortages to AI-powered tax technology, various shifting headwinds are impacting the profession, bringing both challenges and opportunities.

First come the challenges. According to the Accounting MOVE Project, 75% of CPA firm partners are eligible for retirement, but student enrollment in accounting and finance degrees is down more than 17%. Given this shrinking labor pool, ever-changing tax regulations, and increased client demands, many accounting firms are dealing with high turnover and burnout among their staff members.

Amidst these challenges, however, there are opportunities. Automation and AI are transforming the accounting landscape by streamlining routine tasks such as data entry, transaction processing, and compliance-based work. While skill gaps, turnover, and rising client expectations are genuine challenges, AI presents an opportunity to transform workflow processes and boost profitability for today’s tax and accounting firms.

These advancements enable accountants to shift their focus to higher-value services, such as advisory and consulting, which require a deeper understanding of client needs and personalized service. As such, a growing number of firms are shifting away from compliance-based business models in favor of higher-margin advisory services.

In fact, research by Thomson Reuters Institute found that 95% of those surveyed replied that their clients are now looking for some form of advisory services, and 66% said this desire was strong.

In response to shifting client expectations, accounting firms of all sizes are now offering advisory services of one sort or another, and many are planning to provide other frequently requested services, such as financial planning and decision support. According to the survey, this shift is driven by the growing number of clients searching for advisory services and the fact that more firms recognize the need to evolve their business models to compete.

This evolution is certainly true for Katie Lomness, CPA and Founder of Lomness CPA, last year’s Thomson Reuters Firm of the Year. With a passion for educating clients through advisory and tax planning services, Katie and her team have a heart for small businesses. From her experience, client demand and generational shifts are fueling a shift to advisory.

“Customer demand is definitely the number one driver toward advisory services within the accounting industry,” says Katie. “I think there is a generational shift as well to more Millennials and Gen Z who are starting new businesses and wanting to actually know how to operate in the best and most tax efficient way.”

As an award-winning tax and accounting professional with clients all over the country, Sharon Theriot Macke — CPA & Founding Owner of Macke & Company, CPAs based in Metairie, Louisiana — understood the stress of traditional tax preparation and the burnout associated with tax season.

“I would say that we were formally in crisis mode a lot,” said Sharon. “I think for any human being, you can operate in crisis mode for a little while if you need to, but that shouldn’t be your day-to-day way of doing business.”

But after a fortuitous call from a Thomson Reuters Practice Forward representative, her firm now specializes in business advisory services, a move she says changed her life.

“I know accountants and change don’t go together, but you won’t get a different result unless you do something different,” she says. “I believe this is a change where you’re still on the early end of the curve — and clients are driving this. They need it.”

A unique opportunity for women

Whether you’re just starting out in your career or you’ve been in the profession for a while, client demands for personalized accounting guidance mean there are now more opportunities than ever to rise above.

Women bring a unique perspective to the accounting profession, often excelling in communication, empathy, and building relationships. These skills are critical for advisory roles, where understanding client needs and providing tailored advice are paramount. Women are naturally poised to thrive in these roles as they leverage their strengths to build successful advisory practices.

Whitney Kisner, Director of Operations for Papin CPA, brings a unique approach to empowering the team with knowledge and encouraging others to grow within their fields of expertise.

“Women are inherently methodical, attentive, and thorough,” says Whitney. “Building out the advisory structure and the advisory firm is all those things.” Whitney should know — she was instrumental in her firm’s journey to offering advisory services.

“We had a few motivators which really revolved around opportunity,” said Kisner. “We knew that businesses and business owners needed this, and we had a solution for them. We also saw that we wanted it. We wanted to have these conversations; we wanted our focus to be more on goal setting and strategic planning and forethought. So, we saw the need on both sides.”

This type of thinking also ties into year-round revenue stability. One benefit of moving to advisory is that firms are no longer slammed during tax season and looking for more work during the off season. Supporting clients year-round with tax insights means consistent and stable work.

“We’re helping set the path and the pace for both our clients and our firm,” says Kisner. “That was our motivation. We didn’t want to be behind. We didn’t want to be an afterthought after a tax return was already produced. We wanted to be in front — strategic and intentional.”

Katie Lomness agrees, stating, “For women in advisory roles, we get to know our clients a lot better and on a more personal level than just meeting with them once a year. It’s also allowing us to be leaders and influencers within the industry and for our clients.”

From Sharon Macke’s perspective, the most significant opportunity for women in advisory stems from the shrinking CPA talent pool.

“One of the things that I think will greatly impact our profession is that just slightly less than 50% of CPAs are in the ‘gray zone,’ and within three to five years, they will be leaving the profession through retirement, cutting back at work, whatever,” she says. “There are not an equivalent amount of people entering the profession. So, I think that is going to greatly impact all CPA firms throughout the country.”

“But it’s going to be a great thing for advisory firms because when there are fewer people to deliver the work to clients, that’s going to drive prices higher, and the demand for those services will increase because there are fewer people to fill that demand,” Sharon says.

A profitable shift

From providing clients with financial insights to helping them navigate the complexities of tax law, accounting firms that have made the move to an advisory services business model are realizing significant gains, including:

A 133% increase in the average first 12-month billing for new clients
A 113% increase in average monthly billing for existing clients

*All results are based on 87 “Practice Forward member” accounting firms that completed the Annual Practice Forward Member Survey.

Practical insights to jumpstart your advisory journey

While it is clear that clients want an accounting firm to provide them with proactive advice, many don’t understand the value of the service they are asking for — and the additional cost that comes with it. As such, many firms find themselves giving away tax advice for free. If your firm is experiencing this challenge, setting proper expectations upfront is crucial.

When we asked Katie Lomness to reflect on her transition to advisory, she reiterated the importance of setting expectations from the start: “When I took over my firm from my predecessor, it was very compliance based with high-volume, low-dollar tax returns,” says Katie. “But I attended a Thomson Reuters Practice Forward Partner Summit, and I knew that advisory was the way I wanted to go. I knew that it was what our clients were going to want in the future. I just didn’t have the team and the resources at the time.

“So in 2022, when we did have the right team and the right resources, I took my management team to a Partner Summit,” she continued. “The four of us sat and listened to the methodology, the reasoning behind advisory, and why it’s so important in our industry moving forward, and we kind of jumped right in with implementing that within our firm.”

As she moved to an advisory structure, Katie’s patience and strategic intuition paid off. “In our first year of implementing advisory, we sold $225,000 worth of engagements for just 30 clients with advice that we used to give away for free,” she says. “So that’s that was really rewarding for us.

“We went from revenue of $300,000 a year to $1.3 million a year since I took over by implementing advisory services and actually charging for the services that we’re providing versus focusing on the high-volume, low-dollar returns. I didn’t know how to price accordingly for a lot of years until I got into the Practice Forward method and realized I was way undercharging,” says Katie. “So definitely know your worth, and don’t be afraid to charge for it.”

Sharon agrees. “Every practitioner I know who’s not on the advisory model is giving away more than enough work to pay for the investment in this change,” she says.

Unlocking value beyond the billable hour

Along with the move to advisory services, many firms realize that hourly billing doesn’t fully capture the true value of their services. According to Thomson Reuters research, the pricing model gaining the most traction in 2024 is value-based pricing, in which firms charge based on expertise, guidance, and results rather than time spent.

Almost half (48%) of respondents said their firms already offer value-based pricing on some of their services, and 18% said they plan to start offering it by the end of the year.

A value-based approach assigns a price to each service based on its value to the client. The cost varies from client to client, based on what the client values most and how much they are willing to pay for that value. Fundamental to this shift in mindset is recognizing that your knowledge and experience are valuable — and you shouldn’t give them away for free.

“Delivering advisory services and being able to pitch these bigger engagements has greatly increased my confidence and ability to sell and get paid for the knowledge that I have,” says Katie. “I used to give away all this information for free, and now I have the confidence to be like, no — actually, I don’t need to answer that quick question for you in a five-word email. That’s going to be an hour-long discussion that we need to charge for.”

While value pricing has many benefits, perhaps the most significant result is how your clients respond to it. They’re no longer worried about the clock each time they talk to you; instead, they can begin collaborating with you. They become part of the process, with a deeper understanding of your partnership and the value they will receive before work even begins.

“Those conversations are advisory conversations,” says Whitney. “Those are the conversations that a lot of people give away for free right now.”

The value pricing model creates a lasting bond, establishing longevity for the professional relationship. This partnership allows you to take more time to challenge clients, guide them, and support their overall financial well-being throughout the year.

“I think that’s where women-led firms, especially in advisory, are going to excel,” Whitney continued. “Because we want to have those conversations; we want to be thorough in those conversations, and we want to create the space for our clients to be able to come to us.”

The impact of value-based pricing

By shifting from billable hours to a value pricing model, you can strengthen your accounting firm’s value proposition and open the door to year-round client relationships — instead of limiting interactions to an annual tax return preparation.

Accounting firms who’ve made this shift estimate:

A 25% increase in overall annual revenue within the first 12 months
An 80% increase in the number of clients on recurring billings

*All results are based on 87 “Practice Forward member” accounting firms that completed the Annual Practice Forward Member Survey.

Identifying and converting clients for advisory services

In an era where technology can more efficiently handle traditional compliance work, establishing enduring and meaningful connections is how your firm can generate more transactions, retain clients, and build a sustainable business.

Not only does advisory open up additional revenue streams, but it also enables more meaningful relationships with clients and a deeper sense of purpose in your accounting firm's services.

However, when you make the move to advisory, not every client will be the right fit. Therefore, screening clients to identify those who will be ideal for your firm’s service model is essential — it means not taking every client who walks in the door and, in some cases, maybe even firing a few.

“So, we came back from Partner Summit and said every new client walking in the door has to go through advisory services,” says Katie. “Otherwise, we’re not taking them.”

“I did a pitch meeting two days after that summit and was very surprised that they said yes, but they did, and we kind of rolled from there,” she continued. “We initially implemented advisory with new clients only and looked for clients that would be a good fit for transitioning to an advisory model — and identified those factors during tax season. We’re taking action on that now to convert the current clients into the advisory model.”

When it comes to identifying and converting clients, it is often helpful to identify those with complex financial situations requiring more than routine compliance work or those clients who value personalized and proactive advice. But there are a variety of ways to begin the transition.

“In our individual case, we decided to kick off the transition with new leads that we had in the pipeline,” said Sharon. “We figured that would serve a multitude of purposes for us. It would help us to develop confidence in the process as far as these new leads go, and to them, this is the way we’ve always done business. So, it wasn’t anything different as far as they were concerned.”

Last year, prior to the start of the tax season, Sharon and her team formally evaluated their entire client base and ended up creating additional bandwidth.

“So, I would say for us right now, we like the size that we are,” says Sharon. “We have a more robust practice with active relationships, and we’ve made a whole lot more money.”

Whitney also emphasized the importance of evaluating clients during the transition to advisory. “You have to evaluate the clients that you have and where there are growth opportunities for them,” she says. “We wanted to take an approach of identifying what our current client base was. For us, we are a small business that focuses on small businesses and small business owners.”

Sometimes, that experience is not mutually beneficial. For Sharon, saying no to clients is just as important as saying yes.

“What I have learned through this whole process is the power of the word no,” she says. “If said in a somewhat tactful way, the client or the potential client understands. We try to offer solutions that can address their needs in another way. But we don’t really do work that is not profitable to us because, at the end of the day, we want to have the satisfaction of a job well done.”

Katie agrees. The time and energy a firm spends dealing with less-than-ideal clients is time it can spend bringing in new, more profitable clients. Doing so also means less stress for the staff and, ultimately, more profitability for the firm.

She says, “Being able to say no to clients is also really important. The Practice Forward method spends a great deal of time asking you to develop your ideal client prior to even starting your advisory journey. Sticking to that ideal client, even though it might change over time, is really empowering for your team because that makes sure that your clients are a good fit for you and your firm.

“If we bring on an advisory engagement that’s going to be $5,000 a year, how many clients can we let go that aren’t a good fit for us that equals that revenue? So, we’re replacing 10 to 15 bad clients with one good client in the process.”

Achieving a more meaningful work-life balance

With a more consistent and regular work pattern, advisory services offer more flexibility than compliance work. This flexibility is particularly beneficial for women, who often juggle multiple roles.

“When you have this structure and this advisory model in your work-life, you can anticipate what your client base is for the year and what you have to do for that client base,” says Whitney. “Then, with any new clients coming in, you add them into this yearly timeline.

“Being able to plan that and know exactly what you need to focus on instead of having those last-minute conversations before or after the fact where you’re kind of scrambling to make sure the clients are getting all of their questions answered. You minimize the overflow that happens around tax season and infiltrates your personal life — and you’re home by 6 pm.”

Offering advisory services puts you in the driver’s seat of your business relationships and means you can more accurately set expectations for your current and future clients.

“There’s definitely an aspect of planning out the lifecycle of a client,” Whitney continues. “Being strategic about meetings throughout the year so you don’t have questions on April 15 or October 15; you’re addressing these topics on a timeline that’s more conducive to the firm.”

Lomness agrees, saying, “We don’t get those last-minute nasty calls or emails from the clients during tax season. So that also helps.”

Perhaps most importantly, an advisory mindset revives those accountants who were once overwhelmed by tedious work or lost the spark that initially drew them to the profession. The power of adopting an advisory-based model lies in its ability to let you fulfill your original goal in the profession — to help clients in a meaningful and satisfying way.

Happier clients, happier staff

Evidence shows a significant boost in engagement and satisfaction among accounting firms that have shifted to an advisory services business model, including:

2% of firms reporting an increase in client satisfaction
56% of firms reporting an increase in staff satisfaction

*All results are based on 87 “Practice Forward member” accounting firms that completed the Annual Practice Forward Member Survey.

Optimizing technology for advisory services

With AI-powered tax solutions transforming the work of today’s accountants, many firms are harnessing data-driven capabilities like predictive analytics and assisted decision making to tailor insights and better serve clients. This type of customized service builds stronger client relationships and fosters long-term loyalty.

In much the same way AI-enabled tax technology can streamline tax prep workflow and fast-track tax research, it can also help take your firm beyond the tax return and into the world of becoming a year-round strategic partner to the clients you serve.

“As AI develops, we’ll be able to deliver more advisory services on an ongoing basis to our clients,” says Katie. “It won’t be just feeding that upfront information. It’ll become like being more of a CFO-type role to our clients, and we will be able to provide more value to them.”

While the implementation of AI often involves a learning curve — during which firms need to train staff, adjust workflows, and fine-tune systems — early adopters can get a jumpstart and capitalize on AI’s benefits sooner. Delaying AI adoption means facing a steeper subsequent learning curve, which can put your firm at a disadvantage.

“When you’re switching to become an advisory firm, I would absolutely leverage as much technology as you can,” Katie urges. “I’ve mentioned the Thomson Reuters Practice Forward methodology that gives you the tools you need to jump right into becoming an advisory firm. That, combined with good software and technology like AI or these programs that can measure KPIs, provides more valuable information about your clients’ financial statements.”

As clients demand this type of insight, firms that resist embracing technology risk falling behind their competitors — and losing clients to more tech-savvy firms that can offer faster, more accurate, and insightful services. However, by proactively adopting new technologies, you can position your firm as a forward-thinking leader in the profession, capable of delivering superior value with the latest technological advances.

Katie says, “Starting an advisory firm is definitely breaking through the old-school way of thinking and adapting new technologies; being willing to change processes, become more efficient, listen to your team, and empower them.”

That is not to say, however, that challenges do not exist. Expanding the auditor’s role in this way requires having the right skillsets in place. As noted in the ISACA Journal, such challenges include:

Understanding complex business operations
Being adept with trending technologies
Knowing how to use the latest audit tools and techniques
Adapting to the need for agility
Addressing regulatory compliance in a changing landscape

With a clearer understanding of the keys to the future of auditing, firms can overcome challenges, provide better results, and offer superior client experiences.

Build your dream firm with Practice Forward

When it comes to building the firm of your dreams, the future of the accounting profession increasingly focuses on advisory. Firms across the country have experienced increased revenue, improved work-life balance, happier clients, and other life-changing results by making the shift. But where do you start?

In order to remain competitive, you must effectively build a service structure that is scalable, profitable, and delivers the services that clients need. This process involves identifying your service offerings to calculate the difference between advisory and maintenance, clearly defining scope, bundling services, determining pricing, establishing internal best practices, optimizing technology, and identifying the right clients for your service model.

Turning to a provider like Thomson Reuters ensures your firm has best-in-class advisory solutions and a proven roadmap for success. With trusted methodology, guidance, and content solutions, Practice Forward can help your firm shift from a compliance-focused model to a more lucrative advisory services approach that engages and sustains clients.

“The Thomson Reuter Practice Forward community is amazing,” says Whitney. “When I started to get into advisory and got to know other people and other firms within the Practice Forward group, I came to find out that there are unlimited resources online that you have access to that help with this journey.”

When you implement Practice Forward, you’ll have access to over 160 tools, including proposal templates, pricing calculators, and checklists — paired with personalized consulting — to help you:

Implement and execute a proven sales process
Identify and package your firm’s services
Develop a pricing strategy
Standardize business best practice advisory delivery
Transition existing clients to advisory relationships
Uncover client advisory opportunities

“It’s helping implementing it. It’s structuring it. It’s giving you the backbones to presentations,” Whitney continues. “Trust the process. Trust the structure. But also make it your own, because you’re going to deliver material the best when you are comfortable with what you’re delivering. I made a slide deck with all the material that Practice Forward provided to us. I made it my own — and that was a game changer for me.”

As automation continues to handle compliance tasks, the demand for personalized, strategic advice will grow. Women, with their unique strengths and perspectives, are well-positioned to lead this transformation, building successful and rewarding advisory practices that meet the evolving needs of their clients.

According to Whitney, building your confidence and leaning on a supportive community like Practice Forward is the foundational advice she’d give other women in the industry as they start their advisory journey. “Every single Practice Forward conference or symposium that I’ve gone to has been just a group of people coming together that all value the same thing and realize that there’s space for everybody,” she says. “There’s so much knowledge in this community that is ready and available to help you, and that’s one of the most amazing things.”

“You’re not alone. You’re not on an island. You’re not doing this by yourself,” says Kisner. “You’re following the footsteps of a lot of other people who’ve implemented advisory into their firms and have become advisory-focused firms. They are willing to give you all the tips and tricks and help along the way if you ask. So, by no means are you alone.”

Are you ready to start your advisory journey?

There’s no need to wait to begin offering advisory services to your clients — you can get started today. Take the first step with a free demonstration.