Navigating challenges and embracing opportunities in the Accounting profession

Our vision for accountancy firms in 2024…

Strategy 1: Talent is key to success

Andrew Geddes, joint Founder of Financial Management Research Centre (FMRC) and former Chair of Greencross Ltd (a top 200 ASX company), emphasised the importance of attracting and retaining talent in accounting firms. He suggested involving young accountants in client interactions to provide them with valuable experience and skills. The accounting profession needs to make itself more attractive by offering challenging and interesting work, beyond mere compliance tasks.

Strategy 2: Creating deliverable services

Accountants should focus on ‘DELIVERING ADVISORY SERVICES’ that add value to their clients, especially in the face of expected economic challenges in 2024. The NAB Professional Services Report showed that while many firms ‘offer advisory services’; the actual delivery and integration of these services into client offerings are crucial. ESS BIZTOOLS is committed to providing resources and product packages to assist firms in delivering these services effectively.

Strategy 3: Issues for the accountancy profession in 2024

The former Tax Commissioner warned that firms relying on high-volume, low-margin tax returns would not be viable in the next few years. Accountants must diversify their services to remain relevant and become trusted advisors. This involves offering comprehensive business advisory services, including financial forecasting – budgets – cash flow forecasts – projected balance sheets, business planning, business funding, and strategic reviews.

Strategy 4: Fiscal management improvement for SMEs

An article published in the ‘Financial Review’ , Paul Robson, CEO of MYOB, highlighted important issues confronting SMEs through lack of knowledge of FISCAL MANAGEMENT issues and raised some serious questions about the level of support SMEs were receiving from accountants including:

Understanding suppliers payment terms.

Implementing effective Debtors Management Systems to manage Debtors Days Outstanding (currently Australia has one of the highest Debtors Days Outstanding in the world).

The need for realistic budgets and cash flow forecasts to be prepared annually and reviewed against current performance reports each month.

The benefit from the preparation of detailed financial accounts for each business activity each month and comparison to budgets.

Preparation of KPIs and Business Metrics to enable management to be able to analyse current position with the budget estimates progressively throughout the year.

Offering services to assist SMEs to establish realistic charge out rates and selling prices that enable SMEs to achieve their profit targets by utilising charge out rate/selling price calculators for tradies, retail/wholesale, professional services and manufacturing firms.

Strategy 5 – Time management and team training

Accountants need to adopt better time management strategies, delegate tasks effectively, and consider outsourcing low-value compliance work. Team training is essential to transition from compliance-focused tasks to providing BUSINESS ADVISORY SERVICES. This requires a deep understanding of clients' businesses and proactive management.

ESS BIZTOOLS has developed the ’52-Week Business Enhancement System’ which incorporates the ‘1 Inch Wide and a Mile Deep Business Due Diligence Review’, to ensure that accountants have an in-depth knowledge of their clients’ business operations.

Strategy 6 – Becoming the Chief Financial Officer

Accountants should aim to become the virtual Chief Financial Officer (CFO) for their clients, offering services that include due diligence reviews, financial forecasting, and regular performance reporting. This proactive approach will help clients manage their businesses more effectively and create value.

Strategy 7 – Use of technology

Accountants should leverage technology to offer virtual CFO services, ensuring clients receive timely and accurate financial information. This includes implementing daily, weekly, and monthly reporting systems similar to those used by larger businesses.

Strategy 8 – Website and Business Coaching

Developing a comprehensive website and offering business coaching services can enhance client engagement and satisfaction. These services can cover a wide range of business operations, from cash flow management to strategic planning, research and development, risk management, succession planning and capital raising.

Conclusion

In 2024, the ACCOUNTING PROFESSION must focus on ‘DELIVERING VALUABLE ADVISORY SERVICES’ to meet the evolving needs of SMEs. This requires a strategic approach to talent management, effective use of technology, and a commitment to continuous improvement and client engagement. By doing so, Accountants can differentiate themselves from competitors and provide significant value to their clients.

If you have any questions or comments regarding the vision for accounting firms in 2024/25, we’d love to hear from you. We welcome insights from accountants like yourself. Contact us on 07 4724 1118 or email [email protected] .

Complimentary material

A complimentary copy of our paper, ‘Creating Business Advisory Services for Clients’, is available to download. It looks further into what has been mentioned in this edition. DOWNLOAD YOUR COPY HERE .

Upcoming Webinars

ESS BIZTOOLS is presenting a series of information webinars, going through some of the key components of the products that will assist you to DELIVER Advisory Services to SMEs. Click on your preferred webinar below to register, free of charge.

52-Week Business Enhancement System:

·???????? Friday 19 July at 11am AEST

·???????? Wednesday 7 August at 10am AEST

Empowering Bookkeepers to Offer Advisory Services:

·???????? Wednesday 24 July at 10am AEST

·???????? Friday 23 August at 10am AEST

Make 2024/25 the Advisory Delivery Year: Thursday 1 August at 11am AEST

Fiscal Management – a Starting Point (with guest speaker Amanda Gascoigne): Wednesday 14 August at 10am AEST

Professional Services Firm Pricing Calculator: Thursday 15 August at 12pm AEST

Advisory Intro Package Introduces Advisory Services: Friday 16 August at 11am AEST

Crowd Sourced Funding Equity Raising: Wednesday 21 August at 12pm AEST

Starter Package Launches Advisory Services: Thursday 22 August at 11am AEST

Advanced Package: Deliver REAL Accounting Services: Monday 26 August at 11am AEST

Implementing Virtual CFO Services: Wednesday 28 August at 11am AEST

Small Business Equity Financing for Advisors Coming Soon

CPD for Accountants, in conjunction with ESS BIZTOOLS, has developed a self-paced eLearning course for Accountants, Bookkeepers and Consultants wishing to upskill to offer Business Advisory and Virtual CFO Services to SMEs.

Unlock growth with equity financing

In today’s fluctuating economic climate, businesses must navigate complex financial landscapes to ensure sustainability and growth.

Small Business Equity Financing is a comprehensive eLearning course designed to equip Business Advisors and Virtual CFOs with the knowledge and tools to guide their clients through various funding options.

This course emphasises the critical role of equity financing in supporting SMEs.

What’s this course all about?

This course provides a detailed understanding of equity financing and its significance for small businesses.

Participants will learn about different funding options, the benefits of equity financing, and how to effectively advise clients on securing investments to foster business growth and resilience.

Learners will have access to a comprehensive resource library of information relating to all key equity financing options for business owners.

This course will be launched on 1 August.

CLICK HERE to find out more.

Ready to take the step? ENROL BELOW.

ESS BIZTOOLS New Financial Year Subscription Offer

To help you jumpstart, refresh, or enhance your Advisory Services delivery for 2024/25, ESS BIZTOOLS is offering discounts on all of our product packages.

Advisory Intro Package

$89.10 (including GST) 12 x monthly or upfront discounted price of $891 (including GST) – more information HERE

Business Advisory Services Starter Package

$178 (including GST) 12 x monthly or upfront discounted price of $1,782 (including GST) – more information HERE

Advanced? Package

$534.60 (including GST) 12 x monthly or upfront discounted price of $5,346 (including GST) – more information HERE

Financial Forecasting Package

$950.40 (including GST) 12 x monthly or upfront discounted price of $9,504 (including GST) – more information HERE

Want to know more?

Visit www.essbiztools.com.au .

If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 1800 232 088 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.

We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.

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