Accountants have always been seen as the number crunchers, the ones responsible for preparing and maintaining financial records. But as businesses face economic hardships and closures due to the pandemic, more accountants are being asked to provide financial advice. Is it a wise business choice to make the transition?
According to U.S. News, a financial advisor career is among the best jobs with the best pay. “Accounting firms are quickly seeing the advantages of providing more than raw data to their clients,” says Justin Hatch, CEO of Reach Reporting. “The accounting firms that don’t offer advisory services are losing their clients to firms that do or to automated online accounting apps.”
However, several accounting firms are finding it difficult to make the switch from crunching numbers in Excel to providing advisory services with value-based pricing. With the average age of a financial accountant over 50 years old, it is no surprise that it has been business as usual for decades.
But a change in market mindsets and a shift in industry demographics are causing accountants to expand their offerings to advisory services. Today’s businesses need professional financial advice, and with so many businesses temporarily closing their doors, they need financial advice to help them from closing permanently.
In Yelp’s Local Economic Impact Report, “a decreasing number of overall business closures, 132,580 in total. As of August 31, 163,735 total U.S. businesses on Yelp have closed since the beginning of the pandemic (observed as March 1), a 23% increase since July 10. In the wake of COVID-19 cases increasing and local restrictions continuing to change in many states, we’re seeing both permanent and temporary closures rise across the nation, with 60% of those closed businesses not reopening (97,966 permanently closed).”
But what does a financial advisor do? Financial advisors learn their clients’ current financial situation and then set goals and create a game plan that puts them on track to achieve those goals. They guide their clients along the way with advice, suggestions, and answers to questions. They help their clients save more, invest wisely, and reduce debt.
There are many specialties under the name “financial advisors,” and some of the most common ones are financial coaches, investment professionals, tax professionals, and wealth managers. Each specializes in a different area and offers different services to their clients.
However, to be a successful financial advisor, certain characteristics are essential. You must be personable, entrepreneurial, a problem solver, a salesperson, a self-starter, and have the ability to focus. You must also use your experience and be humble, confident, and willing to learn.
With Reach Reporting, accountants can make the transition to advisory services smoother. The app can automate powerful advisory reports in seconds, freeing up time for accountants to provide top-notch advisory services. Businesses need accountants to help them survive 2021 and beyond, and Reach Reporting wants to be an ally during and after the transition to advisory services.
In conclusion, becoming a financial advisor can be a wise business choice for accountants. It is a lucrative career, and businesses need professional financial advice to survive. By having the right characteristics and utilizing tools like Reach Reporting, accountants can make the transition smoother and provide top-notch advisory services to their clients.