Opportunity for accountants on the horizon with SME clients
Accountants can better service their small business clients by helping them understand the full financial health of their company as a value-added service, says a software executive.
ProfitSee chief executive Peter Vessenes says what small business owners “really want” is to improve their financial stability and increase profitability, needs that are unmet through compliance and tax work an accountant provides.
While praising Australian accountants for being well ahead of the pack when it comes to providing value added services, Mr Vessenes has urged accountants to look into fiscal management as a means to further their relationship with clients.
“What most people don't understand is that when accounting firms are brought in to do consulting work, they are usually brought into bigger companies to do cost control which is not fiscal management,” says Mr Vessenes.
“Most smaller companies under $10 million a year don't understand that your profit and loss statement doesn't really tell you whether you are making money or losing money.
“Value added services to smaller companies as a necessity needs to be fiscal and asset management because they are not going to benefit from cost control.”
Mr Vessenes believes it will only be matter of time before larger accounting firms start moving towards the direction of incorporating fiscal management as part of their portfolio of services.
“They have deep enough pockets that if they don't want it this year, they'll learn it next year,” he added.
“So I think there should be an urgency on the part of other accounting firms to move towards those types of services.”
“There's no question that the accounting software companies themselves understand that unless they are able to provide value added things that help build prosperity into their business clients, that they will wind up being commoditised.”