The Transformative Value of Financial Advisory

Accountants do great things. They produce accounts, help with compliance and file the tax returns. 
Bookkeepers do great things. They balance the books, produce timely financial information and file the tax returns. 
Tax Advisors do great things. They spot the opportunities, answer the questions and file the tax returns 
Of course we all know that Accountants, Bookkeepers and Tax Advisors do much more than this. But what is the real value of what our services can deliver? 
Our clients need things.
They need to prepare accounts and file tax returns. They need to file company returns. They need to comply. 
Our clients want things. They want to make more money. They want to keep out of trouble with Revenue. They want peace of mind. They want to provide for themselves and their families. They want to be able to sleep at night. 
Then there are the things that they may not even consciously know that they want and need. 
We had a really interesting conversation on our ProfitPro Mastermind Office Hours Call yesterday. Every month our members come to this call with questions and we debate the issues of the day. The conversation started yesterday around Wealth Advisory. 
One of our long term members explained his process of providing Wealth Advisory services and the impact it has on his clients. This is my summary of what Pat said.  

First Level – Pat talked about reviewing personal expenditure and monthly household budgets and how he helps clients review their personal spending and create better habits and begin to put more aside for rainy days and the future. Basic personal budgeting. 

Second Level – Pat talked about protection. Based on what clients are spending now to live what would happen if they were unable to work for a prolonged period of time. What income protection do clients have in place and are they adequately providing for unforeseen circumstances if their earnings are impacted. 

Third Level – Pat talked about planning for the future and planning for retirement. The basic review of when will you retire and what do you need to have in place financially to be secure, and what do you need to be financially free. Pat shared how this is a transformative experience when the penny drops with clients and they lift their head up and look ahead to retirement years. 

Fourth Level – Pat talked about creating plans to close that gap. What level of pension investment is required.  What level of other investment and savings are required to close that gap. Clients need to live today but their business needs to provide not just for now but for the future too. This is not about selling product this is about running the numbers and laying out the scenarios. 

Fifth Level – Pat talked about translating this back into practical advice around the clients business. What do we need to do in relation to margins and mark up? What does the client need to do in relation to raising prices, becoming more efficient and trimming costs. What are the KPIs that the business owner needs to manage so their business can thrive, they can live with comfort today and they can live comfortably in the future. 
Pat went on to explain how he prices these services and delivers them and he talked about the benefits for his clients and the benefits his firm gets because of the deeper relationships and the value his clients experience when he does this type of work. 
What was really interesting was the reaction of some of our other members who immediately identified as doing this type of work and perhaps labelling it something else. And then there were the members who are having the conversations and providing the advice but not bundling or structuring it and not charging for it. 
Yes of course we need to watch the line for what could potentially be investment advice but what Pat does and I described above does not constitute investment advice and is really about financial literacy and sharing practical knowledge with our clients. 
What business owner could not benefit from financial advisory like this? 
As an accountant, as a bookkeeper or as a tax advisor you are already doing amazing work and providing huge value. Could you take a couple of extra steps and provide transformative value? If you’re interested in finding out how joining ProfitPro could help you improve your accounting business email Alma at [email protected].

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