77% of accountants plan to offer general business management advice, according to The Practice of Now, Sage April 2019.
However, currently less than 20% of this service. So, firms need to consider how to broaden their offering to clients, without risking their trusted status with business owners and managers.
One are of business which is often overlooked as a fee income opportunity, is purchasing.
Currently 80% of small businesses use manual processes such as online search, email and phone calls to find suppliers and purchase goods and services. As a result management lack the visibility and control of their spending.
How often have your clients experienced payment demands from unknown suppliers, overdue purchase invoices with no audit trail, over-payments and waste?
For accounting firms looking for their first step into Business Advisory, or established advisors seeking to extend the value they can deliver to clients, purchasing represents a great opportunity.
It’s a logical and low risk area of business to advise on. Whilst many entrepreneurial business leaders naturally focus on top line growth, accountants are seen as the ‘controller of company finances’ and as a result, purchasing presents an opportunity to prevent poor spending and control costs before orders are placed.
Its a quick win. Implementing budgets, simple purchase order approvals and managing suppliers delivers immediate cost controls, improved quality, reduced admin and ultimately 10% - 30% bottom line improvements.
Deliver more value on an ongoing basis. By offering your clients advice on purchasing, you have the opportunity to deliver significant value to more parts of your clients business. Improving supplier selection and performance monitoring, identifying savings and inventory optimisation and effective order-to-pay compliance gives accountants a wider remit to demonstrate value.
To learn more about how Purchasing Advisory can transform your clients and boost your income, take a look at Cloud based Purchase-to-Pay platforms, such as Zahara. Zahara helps clients to manage budgets, control suppliers, make it easy for employees to raise purchase requisitions, get approvals and place orders. It automatically compares goods received with supplier invoices to automate purchase reconciliations and approvals and seamlessly integrates with accounting software such as Sage, Xero and QuickBooks. For business owners and financial advisors, Zahara allows users to set purchasing policies, parameters and controls and let the software enforce compliance.
Zahara gives managers real time visibility and centralised control over every purchase transaction.
Purchasing Advisory presents a great opportunity for Accounting firms to win more clients, grow their fee income and deliver more value.