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4 Tips To Boost Revenues With Repeatable Advisory Work - Future Firm
4 Tips To Boost Revenues With Repeatable Advisory Work - Future Firm
One of my favorite kinds of services to offer small business clients are repeatable advisory services.
They match well with compliance services like tax and bookkeeping, they’re easy to offer and because
clients wanted them, they’re also usually higher margin.
In fact, according to a recent 2020 report that I summarized, rms that offer repeatable advisory
services charge 65% more per client than compliance-focused rms:
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In this article, I’m going to discuss 4 simple tips for how you can boost your revenues by offering more
repeatable advisory services in your rm.
Note: This post was sponsored by Receipt Bank. Everything discussed is my honest opinion based on
personal experience.
What Is Repeatable Advisory?
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Advisory work is loosely de ned as charging for providing advice, which is typically analytical or
forward-looking.
Repeatable advisory, therefore, is advisory work that you can perform on an on-going basis.
This is because you can have a standardized process to provide this service. The more standardized
processes you have, the more smooth and scalable your operation will be.
By contrast, non-repeatable advisory work can be hard on your rm’s capacity since it’s usually a big
project that must be delivered in one shot and there is no standardization involved, which means less
e ciency.
The trick then is to nd ways to deliver valuable advice on a regular basis and turn this into a service.
I argue:
The more bookkeeping you provide, the more advisory mandates you’ll nd.
When I ran my rm, my favorite 1-2 punch to easily put together live accounting and expense data was
Xero for cloud accounting + Receipt Bank for expense and bookkeeping automation.
We had a set process for Receipt Bank to ingest the data and get it pushed right into our accounting
system:
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And because of this, we were able to achieve a timely monthly bookkeeping close for our clients.
This means that you, as the advisor, are able to spot-check the data (using tip #2 below), nd upsell
opportunities, and then deliver on those opportunities far more easily when you offer bookkeeping
versus when you don’t.
For example, clients typically have a lot of questions for you during the year. Some of them involve
analyzing & advising on nancial data to help with their decision making (which can be extremely
valuable).
Receipt Bank ran a recent poll on 100 accountants to see what kind of advisory services they’ve been
providing during COVID:
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The question is, has this been included in your subscription plans?
If you want a very easy way to add a repeatable advisory service, the simple way is to take what you
already do and include it as a line item in your plans. Then communicate the value of this service and
provide different levels to the service.
For instance, here was how I handled this in my last rm:
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Basically, providing advice was formalized into a meeting with the client. Since the books were up to
date (see tip #1 above), we were able to sit down formally to analyze their numbers, listen to where the
business was going and support the business with advice to help them along the way.
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You’re already doing this. You just need to formalize & structure what you’re already doing and build it
into your plans. If you do it right, you can now start charging for this advice.
So if a client came to me for help with a cash ow forecast, I wouldn’t just provide a once-off service
here. I would turn that into a repeatable engagement.
How?
The once-off service would be to implement the cash ow forecast model. We’d gather the data and
assumptions and then build out the initial forecast.
Then, I’d bolt on a recurring update to that forecast to take into account any changes happening in the
business and their assumptions. That would either be an annual, semi-annual, quarterly, or monthly
update.
Building out the forecast took time and was an initial hit to our capacity. But updating the model
regularly allowed us to charge a monthly price and was
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ME easy to do since all
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was done.
Consider how you can turn once-off engagements into repeatable ones.
By contrast, I advocate for a re-engagement meeting with each client before the year comes to an end.
If you’ve followed my advice in tip #1 above, then you’ll already have a pretty good idea of what the YTD
gures will look like just by glancing at the books:
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