The once-in-a-generation opportunity for accountants
Over the past six months, accountants have been the go-to advisers for SMEs. This is not surprising. But what is noteworthy is that the performance of accountants through this period has been so favourable – and so different to what has previously been the case – that accountants now have an opportunity to re-position as true business advisers. But to understand this opportunity one needs to understand the historical relationship between accountants and SMEs.
Some commentators put accountants on a pedestal as the key adviser to SMEs. What they fail to see is that traditionally the SME/accountant relationship has been a frustrating one for many business owners, for two key reasons. In essence, accountants have been reactive historians. That is, they rarely contact their SME clients proactively, waiting instead for the SME to ask questions or raise issues. But even more problematic is the time-frame focus. Accountants focus on historical events (driven of course by taxation issues), NOT on the current period or the future. The disconnect with business owners couldn’t be more dramatic – which business cares what happened last year or the year before that? They are totally focused on the here-and-now and the foreseeable future.
But through this Covid period, accountants have completely turned this around. In fact, their proactivity and their ability to deal with the current environment have been sources of customer delight. Accountants have been on the front foot … getting in touch with SME clients … explaining to them what help is available and how they can access it. This has not been an easy exercise for them as even their clients realise that the ground has shifted quite regularly.
Accountants have earned the right to be true business advisers to SMEs. In the past they ‘wanted’ to be business advisers … now they genuinely can be. But this is where the opportunity lies for accountants … throughout this Covid era, accountants have focused on identifying and accessing the government assistance available for clients – and NOT in trying to help them to be a better business. This is completely understandable of course as SMEs have needed to ensure survival first. In other words, most of the service from accountants has centred on explaining to SMEs what help is available and actually accessing that help … and not so much about broader advice relating to how to improve the business to position it for success going forward.
The opportunity for accountants is obvious – they must look to leverage the strengthened relationship that they have developed with clients to extend their proposition to broader business advice for that SME – that is, not simply limiting it to what help is available and how SMEs can access it. For the first time in our 28 years of SME research it is clear that they have now established the goodwill and credibility to achieve this. The opportunity for accountants is enormous. Consider comments such as the following …
"My accountant has held my hand through this process. They’ve been amazing. Amazing. They even filled in the JobKeeper forms. The increase in their workload must have been unbelievable because they were always accessible and they were doing fortnightly updates for clients and all of that. Just fantastic.” (Vintage Photography, 2 FTEs)
“I’d have to say that our accountants have been brilliant. They’ve really been across the ‘how to’ – because it’s been a bloody nightmare … Have you ever got onto MyGov or the ATO Business Portal? They’re appalling. And our accountant was fabulous, absolutely superb – sending out regular bulletins to clients. I got a bill today from him for $5,000 and it has been worth every penny.” (Branding Consultancy, 11 FTEs)
“My accountant has been fabulous. Every three days he was doing webinars, for probably a three-week period. He opened them up to friends of clients and they were just critical in helping me to know what help was available. He really stepped up.” (Leadership Consultant, Sole Trader)
“I’ve kept a pretty close eye on it myself, but my accountant has been fabulous and honestly he’s not even charging me for the information. I think their view is that it’s about survival and they want their clients to survive.” (Start-up Energy Business, 3 FTEs)
“It’s mostly been information from accounting firms – their newsletters – I think they’ve been VERY good, they’ve been in regular contact, they’ve really been on the front foot.” (Training/Investment, Sole Trader)
“Our accountant has been very reliable, on the front foot with information every week or fortnight or month or whatever with the regular newsletters. Especially at the very beginning of this she was VERY helpful in registering us for the different grants – I just didn’t have time to do it, given all the other things on and the home schooling.” (Curtain design/installation, 4 FTEs)
“We have a very good accounting firm and in combination with my partner, they’ve helped us through it. When my partner looked into it, he actually didn’t find it all that difficult to find information about the help and stimulus packages. And it wasn’t so hard to understand.” (Publishing/Media, 100 FTEs)
Conclusion
For decades accountants have wanted to be seen as business advisers … whereas most have focused reactively on historical tax/compliance issues. But they have repositioned through this Covid period and they can leverage this newfound goodwill and respect that they have earned from their SME clients. Now it is about helping SMEs to be better businesses. Not all accountants will be up to this challenge but the spoils for those that are will be significant.
