Do you remember being told “There’ll always be a job for an accountant”? I remember it clearly as I embarked on my career slightly more than 20 years ago. What a great decision I was making! As an accountant I would be someone that every business in the yellow pages needs (remember the yellow pages?) because life has only three certainties: births, deaths and taxes.
Well, taxes aren’t going anywhere but the traditional accountant is certainly on the way out.
Once upon a time we spent countless hours pouring over green cashbooks, adding and cross-adding. Then more countless hours [were spent] reconciling voluminous transactions to bank statements. Next, to the data entry department for “punching” before we proudly produced a set of financial statements. Fast forward 20 years and programs like Invitbox and Xero do this almost automatically.
As the core accounting and tax services are commoditised and automated by technology, where to for the accounting profession in terms of its role in any small to medium enterprise (SME)? In fact this is the exciting part: no more will accountants be seen as boring professionals carrying out mundane compliance tasks.
Now more than ever, we can be seen as trusted advisers who take care of all facets of a business. As we take a more holistic approach to providing services, we become the go-to person for all sorts of advice and input. The accountant truly becomes so much more than a number cruncher. At DFK Crosbie we refer to this holistic approach as providing peace of mind. We understand that when you’re running a business and doing the best for your family, peace of mind is not easy to find. That’s why everything we do is built around making sure our clients don’t have to worry about things. We take care of worries for them. Our role has been totally redefined within this holistic approach. And it works.
I confess what I love most about being an accountant is the role I can play not only in my clients’ businesses, but their lives. Over the years I have formed brilliant relationships with some clients and have played a part in so many aspects of their life decisions. Yes, their life decisions. Business decisions cannot be made in isolation; they must be made in the greater context of someone’s lifestyle and family. As a trusted advisor taking a holistic approach, you need to understand your client’s business and lifestyle aspirations. Only then can you understand what drives the business and the profits, which may or may not allow them to achieve their lifestyle dreams in the short and long term.
So how does the traditional accountant move to provide a more holistic service to their client? Here’s my step-by-step guide to holistic accounting:
- Spend the time getting to know your client. Really getting to know them. Understand what drives them, what their business and life goals are, how long they want to be in business and what they want at the end of the business.
- Understand their business. What drives the business? What drives profitability and what’s required to make the business work?
- Get to work on helping the client through the whole business life cycle, from the here-and-now right through to business succession and retirement.
- Does the client need assistance with a strategic plan?
- What does the client need to market the business and where can they go for help?
- Consider their bookkeeping needs and make appropriate arrangements.
- Can weekly payroll be outsourced and how can this be arranged?
- Does your client have all their business policies in place? e.g. HR, workplace safety and quality control etc.
- What personal insurances are required? e.g. income protection, life insurance etc.
- Consider how often the client needs to meet with you, perhaps monthly or quarterly.
- What are their requirements for superannuation, self managed or otherwise?
- Are there wealth management or financial planning requirements?
- Discuss wills and estate planning and make arrangements.
As you’ve probably observed, many of these steps are well beyond the scope of traditional accounting skills and experience. You can’t physically perform all of these services yourself, especially if you’re not qualified in legal advice or financial planning. But accountants can and should establish strong referral networks with competent professional advisers in all of these fields. In my experience, clients don’t expect you to know and do everything. But they do greatly appreciate it when you can reach out to your network and organise what they need.
The result is likely to be a strong relationship. While your competitors, and technology, might be able to offer tax returns and accounting, they cannot duplicate your relationship with your client. Your holistic approach will set you apart and make you indispensable to the business.
So as technology moves at an incredible pace to change our profession, we need to move at lightning pace to offer our clients the full suite of services and support they need, and will appreciate.
These are exciting times! Gone are those days when the accountant was seen as a boring bean counter. The updated version offers holistic accounting and is a most trusted adviser who is integral to all facets of a business and vital to any SME; Yellow pages or not.
Kristy Porteous, partner, DFK Crosbie
