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Over a third of small- to medium-sized businesses are looking for more advice in areas such as strategic tax planning or financial planning from their accountant, according to recent research.
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1 in 3 SMBs looking for additional advisory services
24 May 2024
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13 minute read
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A significant proportion of small and medium businesses would like additional advisory services from their accountant beyond just tax and compliance, according to the SMB Navigator Report by Intuit Quickbooks.
The research also suggests that accounting firms may need to do more to promote the full suite of services they already offer.
The SMB Navigator Report 2024 was compiled with insights collected from qualitative studies of business owners and accountants by Agile Market Intelligence.
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Of the businesses surveyed, 69 per cent said they engage with external accountants or accounting firms in some capacity with firms increasing their use of accounting services as their needs become more complex.
Intuit Australia head of marketing, accountant and advisor group, Damien Greathead explained that while tax advice is predominantly the main entry point for most business–accountant relationships, the need for strategic financial planning and operational support increases with the size of the business.
The survey indicated that while 78 per cent of businesses already depend on their accountant for tax and compliance services, over a third of businesses or 35 per cent would like more guidance in strategic tax structuring and planning and 30 per cent would like more financial or wealth planning.
Around a quarter are also looking for advisory services while one in five would like business performance reporting and forecasting.
Among medium sized firms, cashflow management and data planning were in demand, with round a third of medium businesses looking for these services.
Greathead said while the survey indicated that most accountants felt the majority of their clients were aware of the full suite of services their firm offers, firms could be doing more to promote their range of services among their client base.
“On average accounting firms said that 72 per cent of their SMB clients were are of their full suite of services. However the survey indicated that only 42 per cent utilised them fully,” he said, speaking in a recent webcast.
“That suggests that 72 per cent may be a bit overblown. When we spoke to SMBs they said they want and need more services. So I think there’s a bit of a disconnect there in terms of what accountants think their clients know and what clients actually think their accounting firm can help with.”
INFINANCE Solutions director Tish Bhagwandeen said it is important that accountants communicate the skill sets and services they through a range of channels.
“The way we communicate with our clients has evolved so much in the past few years. There are a lot more digital chat forums and online forums on Facebook and a lot more people coming into those business groups and looking for advice from their peers,” said Bhagwandeen.
“I would definitely use that as a channel to market yourself and explain the services that you’re offering.
“There are also the traditional marketing tools like email marketing where you can utilise something like Mailchimp but the key is to let people know its a service that you offer and how that translates into value for their business.”
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