The Marketing Cycle of Accounting Firms

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Tax season represents one of the best opportunities to build your lead pipeline for the upcoming year. Your firm will touch almost every client in the next few months, which increases retention, presents cross-selling opportunities and provides the chance to ask for referrals. One of the most common problems accounting firms have is communication with their clientele. Although most firms manage to address compliance needs, they do not always have the time to investigate or suggest extended service opportunities.

The culprit is the time compression of the service delivery period. The demand for services combined with deadlines create a situation that takes the advisory capacity away from accountants and turns them into a volume-producing machine. If they don't develop a 'crank and churn' mentality, they will miss deadlines or drive staff so hard that the firm will have a difficult time with recruiting and retention.

By default, firms are forced to first concentrate on compliance services and then address advisory services. Most firms never get the number of consulting engagement opportunities needed to evolve their advisory services to its fullest potential. Accounting firms 'advertise' consulting capabilities in their web sites and literature, but when pressed for details, the consulting is often tax or estate planning. Yes, those services are critical, but the CEO is 'time-strapped' just like you and needs someone to help with operational insight. It's the 'non-tax' advisory areas that can really grow in most firms.

A large company CEO has a 'crew' of advisors. CEOs surround themselves with vice presidents and industry specialists. Your entrepreneurial and emerging or mid-sized clients are often equipped with a good, but limited support staff. They are more dependent on input from outside advisors or learn to be self-reliant. Advisory-minded firms increase revenues with existing clients by embracing the role of the outside advisor. This consultative approach is often used to 'steal' high-paying compliance business away from competitors.

You set the business tone with clients. If the initial conversation is on tax and audit issues, and the focus remains tax and audit oriented, then the opportunity to transcend to the trusted confidant level diminishes. Clients require tax and audit services, but they may not value them because they do not understand the effort or strategy involved in tax planning or a thorough audit. When a professional assumes that a client understands the value they are providing, they undermine the value of their services.

Marketing starts in tax season. The focus on meeting deadlines is difficult to overcome, but if a firm wants to expand revenues they need to take time to interview clients. This is really a data collection process that captures needs and at the same time educates the client so they understand why they may have other concerns beyond tax or accounting issues.

Tailor a business development approach to fit your firm's style, delivery capabilities and realistic win possibilities. Focus on five different targets:

  1. Existing Clients. Mine for advisory service sales and referrals. Don't be afraid to sell more because of perceived fee concerns. When you suggest other services, make sure clients understand why they need the service as well as the benefits they will receive. Sell the value!
  2. Direct Prospects. The groups you target ' private companies, public entities, non-profit organizations, etc. ' are dependent on the skills and preferences of your firm. Use a rifle approach rather than a shotgun strategy.
  3. Referral Sources. Get them selling for the firm by communicating and educating these groups. Send differentiating messages and an OFFER they can pass along to their clients and referral sources. Referral partner marketing can create an annuity of leads.
  4. Media & Associations. Perception is a vital part of acceptance. Articles and speaking engagements can create tremendous goodwill and make small firms look mighty. Speaking engagements and writing aren't for everyone. If you can't speak, write. If you can't write, hire a ghostwriter. It's a common practice.
  5. Other Accounting Firms. Annually, every practitioner should conduct a search to acquire another firm. This builds a pipeline of opportunities. A $500,000 firm acquiring a $150,000 practice increases the value of the firm by 30 percent. After a few acquisitions, the value of any practice will significantly grow. Any firm, regardless of its size, should be searching for acquisitions after tax season.

Properly size your targets. A 10-person firm should not expect IBM to turn its tax work over to them. Unless you have an inside track or a well-defined and identified niche, the larger the prospect, the more risk the CFO takes by engaging a smaller firm. The safer bet for the CFO is to hire the firm that represents the lowest risk possible at the most cost-effective price. If something goes wrong, it is easy to defend their selection if they have hired a known name. If the CFO hires ABC, LLP and issues arise, the CFO may end up looking for a new job. Remember this when defining targets. Whether you can do the work is not material. It is the prospect's needs and fears you must learn how to read. The best solution does not always win.

Look at your bids. When the opportunity comes to present a proposal, examine your presentation from the shoes of the CFO, Controller or CEO. Evaluate these factors:

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