Before we answer that question though lets consider the real product of say a business like Disney.
You could state that the product of Disney is :- movies, theme parks, toys – the list could go on. But you could sum it up that their real product is memories.
It is their relentless focus on this that has allowed Disney to become a premium business able to charge premium prices.
So lets return to the question of the product of an accounting and bookkeeping firm.
It would be possible to state that the products of an accounting firm are :-
- financial statements
- tax returns
- other tax obligations
The list could go on but all I would be naming are just services. Services that are just commodities. Services that will be increasing automated, outsourced, and delivered by the lowest cost provider. Whilst we don’t know what the compliance related services will look like in the next 5 or 10 years but we are realist enough to know there will be incredible change.
So then what is the only real product of an accounting firm?
A Transformed Client.
That is the answer.
Yes clients need the accounting services, the compliance services completed. Yes they need peace of mind from ensuring that books and records are in order. But lets be real, that service is available from a vast majority of accounting and bookkeeping firms.
What they are really after is help to make informed decisions about growing their business. They want help to generate real free cashflow. Help to transform their business and thus their lives.
This might sound like some touchy feely mumbo jumbo. You might say no might clients just want the core compliance services. Well they are the customers that Disney would say can go to the other cheap theme parks. If you want an experience and to leave with memories for life then we can help you.
If however you want an accounting firm that is able to charge premium prices (achieve pricing power) then you must guide your customers on a journey of transformation. This is a lot more than just providing compliance services.
Information services like accounting, taxation services and better compliance through various apps are just the starting point. Interpreting the numbers, making sense of those numbers through forecasts, KPI reports and critical metrics are important and extremely useful. But the real value lies in providing the insight, business growth support and importantly helping the business generate free cashflow is where the transformation occurs.
Accountants can have an incredible impact on small business and in the process build a remarkable firm.
Do you want to move from providing Information orientated services to helping create a transformed client?
If you are I would love to hear from you.