In this session, a panel of ACCA members who have established successful SMPs – Phil Ellerby, Managing Director of Northern Accountants in the UK, Arshad Gadit, Global CEO of athGADLANG & Wathiq KSA in the Middle East, Cheryl Sharp, Founder of Pink Pig Financials in the UK, and Song Liew, Founder of ANC Group in Malaysia – discuss how they made the leap from compliance-based offerings to successful advisory services. 

Traditional compliance-based services are the lifeblood of smaller accountancy practices but the most successful SMPs grow and thrive by expanding their client service offerings to include advisory and strategic services to their SME clients, guiding them through transformational growth. 

Evolving a practice into a true business partnership role is not easy but it can be lucrative – and for entrepreneurial-minded accountants, it is an obvious goal. But how can SMPs make that step? What does it mean in practice? 

A group of practitioners from around the world who have made that leap with their own SMP recount their experiences and the lessons they have learned, from client relationships to pricing strategy. The starting point for all, though, is the right mindset.

Taking the first step

It is inevitable that most practices start with compliance services – but the drive to expand into strategic and advisory services often comes from their clients, directly or indirectly. For the practitioners taking part in the discussion, the growing understanding that their clients would benefit from wider advice was combined with a self-belief that they were in the best position to provide it, and add real value to their clients’ businesses. It is not just a matter of accounting expertise – SMP owners have first-hand experience of running their own growing business, and that places them in a privileged position.

The practitioners stress, though, that it is essential to get the basics right. Build a relationship of trust with clients through compliance work and then talk to them about what else they might need. 

While some SMPs deliberately position themselves in a gap in the market – offering more than smaller firms that focus on compliance work but at a more affordable price than larger advisory firms – most of the panel grew their firm and took the step into advisory in response to the needs of their clients. The extra ingredient that sets an entrepreneurial practice apart is a willingness to embrace change. 

The role of technology

The right technology has been invaluable for practitioners as they systemise their service offerings and scale up. But all emphasise the importance of the human touch when it comes to client relationships. 

The pandemic persuaded many clients who may have been previously resistant to digital technology of its benefits. For SMPs, video calls and cloud-based computing has significantly improved their access to clients and their ability to show clients that they can add real value to their business. 

While some SMPs are accelerating their digital transformation – by using data dashboards to benchmark client businesses, for example, or experimenting with AI agents – others are focused on using tech to create a seamless service for clients that is repeatable and consistent. Digital tools such as AI-driven meeting transcript notes and task/project management tools are seen as particularly helpful.

Structuring services

One of the challenges for SMPs moving into advisory work lies in deciding how to structure, package and price their service offerings. 

The panel stress the importance of being led by clients’ needs – extra services come from understanding where each client is, and where they want to be in the future. This means investing time and effort into client communication. The techniques practitioners use include:

• Scheduling regular ‘check-in’ calls with clients to listen to their plans and concerns.
• Invest time and money in client relationships. Give staff the time and space to build relationships with their clients, preferably meeting regularly face-to-face.
• Demonstrate how additional services will help the client business progress along its future roadmap.
• Use webinars and publications to inform clients of potential services.
• Collaborate with clients on events.