Tethering business and personal financial planning, for accountants
A quick question or two.
If you took 20 accountants in practice and asked them what changes they are planning to their business over the next couple of years. How many of them would say build up our “Advisory Side”?
-It has got to be more than fifty per cent, perhaps closer to seventy five per cent.
If you took the same group and asked them what services they provide to SME owners personally?
-This time it will probably be almost 100% who say “remuneration planning”.
Now, there a couple of problems here. First, it is difficult to set out your stall if you do the same as everyone else. Second, the pandemic highlighted that “no profit” can lead to “no remuneration planning”,perhaps more like “triage planning”.
The banking and investment world had a similar crunch point in the financial crash of 2008. Before then financial planners struggled to add value as markets just went up, BUT that soon changed…
The accountancy profession has been brilliant in adapting during the pandemic to the corporate demands of their clients (which simply must have impacted their clients’ personal finances). Surely this is the seminal moment when accountants ask what can I do to help you as well as the business?
For all those reading this who are part of the cohort interested in building their firm’s advisory side here are some thoughts for you.
What are the life cycles of a business and how can you support the business owners during each of these 3 key phases?
What do you actually know about your client and their family? Is it documented? If so, where?
Do you know what risk your client is to the business? Are they healthy? Do they have life insurance to protect the business and their family? What happens to their shares if they die?
Do you now when the business owner can afford to retire? Do you know how much money the business needs to sell for (and therefore grow by) to meet the owner’s ambitions?
Clients had hopes, dreams and goals before the pandemic and maybe, just maybe a service proposition that bridges corporate and personal planning is on the money now and will be a genuine differentiator from other accounting firms who sell themselves as “remuneration planning” specialists.
And remember, Chartered and Certified accounting firms can use their Designated Professional Body (DPB) Licence to be the trusted advisor. There is a wealth of things that can be done for business owners that pivot round the DPB Licence.
You know what they say - if you don’t buy a ticket you can’t win a prize. So go explore the benefits of the Licence now, before somebody else has bought up all the tickets!
Don’t forget to sign up for our upcoming two part webinar with John Gaskell and Della Hudson respectively, on the 18th and 25th November 2021. For more information and to register click here!