Startups need support in people operations
Startups often need help finding, retaining, and training their team members. While people operations are not traditional advisory services, depending on your client, this could be an area of service at every stage of the business lifecycle.
For example, payroll became an emphasis during the pandemic with the rollout of the Paycheck Protection Program and Economic Impact Disaster Loans. Conversations about layoffs, hiring, and benefit programs are common, as well as distinguishing between W-2s and 1099s.
Accountants don’t have to become human resource specialists, but some firms are embracing this type of advisory, in addition to their core accounting services.
In some instances, firms simply assist with technology selection. Others move into the analytics of costs and metrics related to their clients’ teams, combining financial and people data to provide a more comprehensive view of the organization. Who better to access both sides of that data than an accountant?
Growth stage companies need CAS support around raising capital
As startups move into the growth stage, raising capital becomes very important. Of course, good financial data must exist, but these clients need more analysis that emerges from your understanding of their business goals, ownership structure, and financial markets as a whole.
As a business explores debt and equity financing options, you can offer guidance based on your knowledge of various financial agreements, as well as your past experience guiding other clients through the same process.
If you want to better understand the revenue opportunity across different stages of advisory services, from startups to mature clients, try our CAS Revenue Calculator to estimate how much your advisory offerings could generate for your firm.
Not only is the initial conversation necessary, but ongoing advisory conversations are just as vital to help businesses grow, adapt, and expand. Consistent meetings to discuss cash flow, team expansion, and financial analysis are important aspects of advisory for growing businesses, and for which accounting professionals are perfectly suited.
Maturity stage companies need CAS for succession planning
Advisory services can grow as your clients progress into the maturity stage of the business lifecycle. Succession planning is front and center for 2.5 million businesses owned by the baby boomer generation. According to Forbes, most of these businesses are quite profitable.
Accountants have an important role to play in helping owners pass businesses along to the next generation. Those acquiring these businesses also need an objective advisor to guide them through a capital raise from a bank, venture capital, or employee ownership model.
Accounting professionals are uniquely positioned to clarify this information in plain language for their clients. They can alleviate the confusion and worry that accompanies these major financial decisions.
