In addition, technology is commoditising many of the day-to-day compliance services traditionally supplied by SMPs, reducing the need for a professional accountant and driving down price.
The good news is that SMEs are increasingly demanding a broader range of professional services, in particular, value-added business advisory services, which SMPs are well positioned to provide. As small businesses themselves, SMPs share similar aspirations, concerns, and attributes with their clients and are in an ideal position to become trusted advisers.
Why SMEs look to SMPs for business advice
SMPs should leverage the following unique qualities when building their practices.
- Competency – SMEs often lack a full range of managerial expertise in-house and outsource some managerial functions, such as CFO, to SMPs that have the required technical competencies and expertise.
- Integrity and trust – as members of a regulated profession with codes of ethics, accountants enjoy “institutional” trust. Their provision of compliance services wins them “competence” trust. This is a time-proven formula. Unfortunately, there can also be a reluctance to utilise advisory services until the expert has already provided a specific demonstration of their competency.
- Responsiveness/proximity – SMEs rate highly SMPs’ responsiveness to their demands. The proximity of SMPs to their SME clients is also important as many owner-managers appreciate personal attention from their advisers and value ease of access.
