Get ahead with Practice Forward: Profitable advisory services.

TLDR:

• Accounting firms are shifting towards advisory services due to the automation of traditional tax compliance work.
• Transitioning to advisory services can lead to significant increases in revenue, client satisfaction, and staff engagement.

The Impact of Practice Forward: Unlocking the Lucrative Shift to Client Advisory Services

With AI-powered tax technology automating traditional tax compliance work, accounting firms are increasingly moving towards a business model centered around advisory services. This shift in mindset involves recognizing the value of advisory services and transitioning from billable hours to a value pricing model.

Key Benefits of Advisory Services:

• 133% increase in average first 12-month billing for new clients.
• 113% increase in average monthly billing for existing clients.
• 25% increase in overall annual revenue within the first 12 months for firms making the transition.
• 80% increase in the number of clients on recurring billings.
• 62% of firms report an increase in client satisfaction.
• 56% of firms report an increase in staff satisfaction.

AI-enabled tax technology not only streamlines tax prep workflow but also provides data-driven insights and predictive analytics. This allows accounting firms to become year-round strategic partners to their clients. Transitioning to an advisory model renews accountants’ passion for helping clients and can lead to increased engagement and satisfaction for both clients and staff.

Are You Ready to Start Your Advisory Journey?

Practice Forward offers tools, resources, and consulting to help accounting firms transition to a lucrative advisory services approach. By attending virtual Advisory Bootcamps and Partner Summits, firms can learn how to redefine their business model, identify advisory opportunities, and develop pricing strategies.