How to Find Financial Advisory Clients and Help Them Say Yes
This is the final episode in my series on financial advisory services, or as I like to think of it, monthly financial reviews with your clients.
In the first episode, I talked about why advisory matters and why you may want to move away from billing by the hour. In the second episode, I talked about where to find opportunities within your existing client base. Now, I’m taking it a step further.
In this episode, I’m talking about how to find financial advisory clients who are not already working with you and how to present advisory services in a way that helps them understand the value.
The first step is choosing a niche. Look at your existing clients. Do you already work with restaurants, doctors, dentists, contractors, plumbing companies, heating and air companies, or another type of business? Start there.
Business owners usually want to work with someone who understands their industry. Yes, accounting is accounting, and bookkeeping is bookkeeping. However, when you already understand the realities of their business, you have a major advantage.
Start With the Niches You Already Know
If you already serve several clients in one industry, ask for referrals. Those clients can introduce you to other business owners who may need better financial information and more consistent financial guidance.
You can also create small niche-based groups. One CPA I know works with contractors and brings a group of them together once a quarter for a lunch and learn. They talk about financial issues, trends, pricing, and the realities of running their businesses.
That kind of meeting helps your clients. It also positions you as the person who understands their numbers and their industry.
Show Prospects What Better Financial Reviews Look Like
When you’re talking with a potential advisory client, ask about their goals, their current financial statements, who prepares them, and what kind of information they’re actually receiving.
Many small business owners have inaccurate financial statements. If the numbers going in are wrong, the information coming out will be wrong too.
That means the first step may be cleaning up their financial statements. Instead of leaving the price open-ended, consider offering a fixed fee. Give yourself enough room in the estimate, and be clear about scope so you don’t create surprises later.
Use Pictures, Not Just Numbers
Most business owners don’t love numbers. They may recognize terms like revenue, gross margin, and profit, but that doesn’t mean they truly understand what is happening inside their financial statements.
Graphs make the conversation easier.
When you show a business owner trends in revenue, gross profit, net profit, cash flow, or other key numbers, they can see what’s happening faster. Pictures help them understand the story their numbers are telling.
For example, revenue and gross profit should generally move together. If those lines are not parallel, there may be an issue with pricing, supplier costs, productivity, or overhead.
Once business owners can see those trends, they are more likely to understand why monthly financial reviews are valuable.
Make Advisory Easy to Say Yes To
After you show a prospect what a financial review can look like, ask whether this is something they would like to review every month.
Then give them a flat fee.
That fee should include the time required to review the financials, prepare the graphs, and have the conversation. If they want bookkeeping, tax preparation, advisory, phone calls, and other services included, then price the full relationship accordingly.
Clients are more likely to call you before making poor financial decisions when they know the conversation is already included. That can make your work more valuable and your client relationships stronger.
Financial Advisory Can Change Your Practice
When you review financial statements with clients throughout the year, tax season can become less stressful. You already have the information. You already know what is happening in the business. Your clients are also less surprised because you’ve been talking with them all year.
Financial advisory services don’t have to be complicated. Choose the right clients. Focus on niches you understand. Show the value visually. Price the work clearly. Then have the monthly conversations that help your clients make better business decisions.
Choose one thing from this episode and implement it in your practice. Start with one niche, one client conversation, or one visual financial review.
People Also Ask
How do I find financial advisory clients?
Start with the industries you already know. Look at your current client base, identify common niches, ask for referrals, and connect with similar business owners who need better financial information.
Why should accountants choose a niche for advisory services?
A niche helps you speak the business owner’s language. When prospects see that you understand their industry, they are more likely to trust your advice and see the value in working with you.
How do I present financial advisory services to a prospect?
Ask about their goals, review their current financial statements, identify what information they are missing, and show them what a monthly financial review could look like using graphs and trends.
Why are graphs useful in financial advisory?
Many business owners understand pictures faster than numbers. Graphs help them see trends in revenue, gross profit, cash flow, and profitability so they can make better decisions.
Should financial advisory services be priced hourly or as a flat fee?
A flat fee can make the service easier for clients to understand and approve. It also gives them more confidence to call before making costly financial decisions.