Business owners rely on accountants more than any other type of advisor. However, accountants often fail to capitalize on their relationships with these clients.
For all the professionals from bankers to lawyers and wealth managers to management consultants, business owners are usually the “ideal client.” This is a function of the often broad array of expertise they require and seek out. Moreover, business owners will usually pay, and pay well, for high quality advice because owning a successful business is the most likely way to become professionally accomplished and personally wealthy.
In extensively researching capable entrepreneurs, it is apparent that their accountants are regularly their primary “go to” professional. As so many critical business decisions are entwined with the financials of the company, these entrepreneurs depend on their accountants to help them navigate the possibilities and make wise choices. This is not to say that other types of professionals are not also consulted at various times. It’s just that accountants are consulted more often and – very importantly – their erudite opinions carry a great deal of weight.
The reliance on accountants by successful business owners proves somewhat ironic as so many accountants fail to capitalize on this dynamic for the benefit of the entrepreneurs and for the benefit of themselves. For example, in a study of successful business owners, nearly 88 percent of them expect to one day sell their companies. At the same time, less than 15 percent of them have taken any action to mitigate the taxes that would be owed on the sale of their companies. This is an excellent scenario for accountants to provide considerable value to business owners. It can also be very financially beneficial for the accountants considering the range of services that might be needed such as formal valuations, restructuring of assets, and personal financial planning.
There are a plethora of scenarios like this one where accountants are perfectly suited to deliver significant value to business owners. Furthermore, through empirical studies soundly confirmed by “in the trenches” experience, successful entrepreneurs when properly approached are highly inclined to engage their accountants for additional services. The major obstacle is the inability of most accountants to effectively position their services which is commonly a function of them not having a truly in depth understanding of their clients or prospects.
For those accountants focusing on business owners and their companies, by systematically identifying new opportunities to add value and strategically positioning their expertise, the financial returns are substantial. It’s not uncommon to literally increase per client profitability by multiples.
This article was written by Russ Alan Prince from Forbes and was legally licensed through the NewsCred publisher network.