The revenue opportunity in advisory work is huge, and it’s more sustainable as a business. But the number of firms that have successfully achieved this holy grail is still very small: Arguably, only 5 to 15 percent have even come close).
One of the major problems is that ‘advisory’ is an extremely poorly defined concept. What it actually means in practice varies hugely depending on who is offering it and who is receiving it. And if you don’t know what it’s going to look like in the end, how do you even start trying to deliver it?
The good news is that it’s actually pretty simple, and most accountants already have the necessary skills and knowledge. It is, however, a question of mindset. This interview between Andy North and Peter Hickey, Founder and President of MAUS, offers some brilliantly simple words of advice.
Being an “advisor” is more about the questions you ask than the answers you provide. “Think of yourself as a sports coach,” says Peter. The goals you’re trying to achieve should be set by your client – and your objective is to help them break them down and hold them accountable.
And what tips does Peter have for the accountant struggling to make sense of all this? “Start with succession planning.” The conversations you can have with a client as they start to consider their exit from their business can create clear opportunities for you to help.