M.T.D… Just PAIN, or is there some opportunity?
What does Making Tax Digital really mean to a firm? Headache? Expense? Lingering thoughts of retiring earlier? Or is it a blessing in disguise?
At neXus we see MTD as a great opportunity to understand and profile your client base, it’s the first step towards generating new fees from your current clients. The more you know about them, the easier it can be to increase their spend.
The reality is that most firms have huge gaps in information, not the statutory information but the key knowledge around their clients’ systems, processes and what is really important to that particular business. Truly understanding your clients is critical if the typical firm needs to move away from compliance and create new revenue streams. The data may not have ever been collated (e.g. clients current software used) or is completely out of date. How can you truly understand what the client wants without having that knowledge to hand?
As systems become increasingly integrated businesses are more and more turning to their accountants to help with their software, the days of turning up at a clients’ office with the default box containing Sage Line 50 are well gone. Now an accountant is expected to be able to advise on numerous software packages and then be able to assist in setting up and integrating bolt-on apps. When the options for suitable cloud software is so wide and the applications to support them so deep it really can be a case of ‘Where do I start??”
True segmentation of your client base will start to break this down and reveal the answers to those questions. You’ll start to see that there are groups of clients across your client base with common characteristics. You will start to recognise small groups that work in the same industry, that have a similar size workforce and are using similar software. Use this knowledge to talk to them about their systems and how to improve their business, helping them to identify opportunities for reducing costs, improving productivity and growing their revenue.
Having a segmented client base will allow you to then see opportunities within your client portfolio to offer different services. Once you understand your current clients, you can use this knowledge to attract new ones.
To find out more about how we are helping accounting firms gather client data and plan for MTD please go to www.nexus-cloud.co.uk