I recently read an article on AccountingWeb, written by Doug Sleeter and describing the findings of a published report titled What SMBs Want from Their CPA. The report is a summary of results from an annual study conducted by The Sleeter Group, and is intended to help
The report and article place a specific focus on trends relating to technology adoption and use in the professional practice, and establishes a foundation for firms to understand why technology is and always has been a key factor in the success of the
The survey’s two critical questions posed to small business owners who use the services of a CPA were 1. What factors played a role in your decision to leave your former CPA?, and2. What types of services would you like to receive from your CPA? Both questions are pretty straightforward, and the top responses from surveyed SMBs were equally unambiguous.
To the first question (factors playing into a decision to leave former CPA), the top two answers indicate that reactive and/or unresponsive are the problems which ultimately cause a small business owner to change accounting professionals. The top response was “Former CPA didn’t give proactive advice, only reactive”. The close second response was “Former CPA had poor responsiveness”.
Unfortunately, these responses more than accurately describe many professional firms and their approach to client service. These firms are perfectly content with waiting for clients to deliver after-the-fact information, delivering reports long after their relevance has past, and providing no sense of urgency in helping clients address business issues facing them here and now. These firms are content to work with their write-up and trial balance solutions, depreciation and amortization and
The second question, “What services do SMBs want from their CPAs?”, was met with the same responses professionals have been hearing for years; small business owners need help with business planning and business strategy and they wish the help would come from their CPA. It is surprising how many accounting professionals list business planning and strategy among the services they promote on their websites, and then just sit back and wait for clients to ask. Communication with clients remains relegated to annual reminders for tax information, or maybe slightly more frequent notes about other tax or compliance work to be done. It may be a bit unfair to place all the blame on the professional. Regulatory and reporting impacts on business are increasing, and are increasingly complicated. Many professionals find it challenging enough, simply to keep up with changes relating to the services they currently and regularly provide.
This is where practitioners should take notice, and accept that the ability to meet changing market and customer demands is by intelligently leveraging technology to accomplish what people and process cannot do alone. It takes
The Sleeter Group report clearly demonstrates that small business owners need more than just tax returns and post-facto reports from their accounting professional, and that the lack of attention in this area poses a direct threat to the SMB/CPA relationship. Professionals can remove the threat by working closer with their small business clients, applying technology and process controls to get better information in a more timely manner, and returning the result with greater insight. Be proactive and be responsive, and apply the necessary technologies and business philosophy to get there before the client base looks for satisfaction elsewhere.
I’ve said before that small business owners don’t care about the numbers, they care about the picture the numbers paint, and they care about getting to a place where the picture is absolutely beautiful. With the right tools in place, their CPA can help guide them there.
Make Sense?
J