Great expectations: how growing accountancy firms can handle major new clients

There comes a point for many accounting firms when their leaders ask, “We’re doing well… so why does it feel so tough?”

This usually happens around the £10 million turnover mark – when a healthy mid-sized firm begins to scale up. At this stage, they’re on the threshold of becoming a national organisation.

The issue lies in the expectations of new, larger clients. At this level, their businesses are more complex and face greater scrutiny.

As a result, advisory services are no longer optional extras, as they might be for smaller businesses. Complex accounting, meanwhile, is par for the course.

The battle to become a national-scale firm

The challenge of weaving sophisticated solutions into daily work is a natural step towards “large firm” status.

It’s not easy. The increasing complexity of your clients and their ever-expanding wishlists is just the tip of the iceberg. You’re also managing around 100 staff and facing rising competition. To win new clients or attract top talent, you’ll need to go head-to-head with some very strong firms.

And all of these major competitors, it’s worth noting, excel at advisory services.

So, what can you do? Let’s explore how to fine-tune your core services to support the next chapter of your growth.

How to embed next-level compliance and advisory into your services

Compliance sits at the heart of every great accounting firm. Every client appreciates it when you keep HMRC and Companies House happy. So how can you ensure this part of your work is as sophisticated as the businesses you are trying to help?

The first thing is to make sure you are prepared. Be ready for anything a client will throw your way. Never be seen scratching your head or playing for time when they present something complex – sound informed.

The key is to focus your teams on specialist areas. When a team does this, its knowledge base grows. Tough accounting challenges like construction and cross-border operations become second nature to these specialists. Your teams will be ready with good advice and great accounting solutions.

That does not mean siloing your teams

It’s always a good idea to share knowledge between teams. When you do, every accountant becomes regulation-ready. They also gain a clearer understanding of what their colleagues do, which means they might spot cross-sell opportunities they’d otherwise miss.

Start by building an internal network for knowledge-sharing. Each firm will approach this differently. Some may prefer formal presentations; others might opt for something more informal – think PowerPoint decks, emails or newsletters.

Why you must also educate your clients

The bigger the client, the more exposed they are to regulatory changes – both domestic and global.

This includes updates to UK auditing standards, Making Tax Digital and IFRS, to name a few.

The pressure on these firms to meet tight deadlines and pass inspections is huge. That means you need to stay close to clients and audit them without losing chargeable time.

How can you do this? Start by educating clients – through in-person meetings and workshops.

Also, set up regular communications. Your options are varied: you could use a newsletter, schedule regular calls, or communicate via email.

How good technology makes a difference

Used correctly, technology can strengthen the working relationship you have with clients.

It can make a real impact on data collection – especially in an era of quarterly reporting and the requirement to use HMRC-recognised software. Automation removes much of the pain of chasing clients and provides helpful reminders when they forget to share data.

With automated tools at your side, it can also free up large amounts of time.

Where does advisory play a special role?

The first step to improving your advisory services is to look at the situation from your new, larger and more complex clients’ point of view.

Their size and status make them more likely to fall under the spotlight. They worry about stakeholders as much as the media – and any financial reporting that influences their standing.

Many have built operations across several countries, bringing challenges around managing people, funding and assets.

And that’s just the “conventional” businesses you work with. You’ll also find charities and high-net-worth individuals knocking at your door.

Of course, all these clients need compliance work – but that work is also a gateway to more bespoke advisory services.

For example, large businesses are looking to new sources of funding. Banks are a less common go-to in recent times; more typical are brokers, private equity firms and angel investors.

Meanwhile, charities face endless obligations, and individuals seek valuable financial insights wherever possible.

The great news is that much of this is already second nature to you.

What else do you need to do?

Most importantly, you need:

• A plan to help large businesses find efficiencies
• A strategy to retain talent
• A routine for forming partnerships
• A solution for overcoming software issues

That’s where our guide comes in

There’s only so much we can cover in one blog.

Our FREE guide to sustainable growth offers top tips for adding value while staying competitive.

Inside, you’ll learn how to:

• Fine-tune your services
• Develop advanced advisory solutions
• Stay ahead of the competition
• Leverage technology effectively

Click here to get it.