We endured a year full of hardships and joblessness due to the Coronavirus pandemic. CPA firms and accountants were no exceptions. Technological advancement and the fiercely competitive market had meant fewer revenues for CPAs already. If there are any positives to come by from the current crises, it can be to bounce back stronger with solid recovery. To future-proof themselves against unforeseen external challenges, it’s imperative to explore how CPAs Can Diversify Their Business
A single revenue source of business without any contingency plans wouldn’t suffice for any business. Relying on tax season sales wouldn’t yield profits in the coming years for you. You plan now to succeed Post-Pandemic. A prosperous way forward for CPAs is to diversify their pool of services and increase the services product portfolio.
How to Diversify Your CPA Business?
Embrace the tech transformation in the accounting industry. Let the digital transition of financial services become your partner. Think of technology as a great enabler of your revenue growth and diversification than a hurdle. Innovation and Specialization will keep your business growth in post-Pandemic economy.
Here are a few additional options for your CPA firm that you must start in 2021.
Step into Financial Planning
Analyze the financial performance of your business for the last calendar year. Where did you go wrong? Had you enough plans for contingencies like this?
Rest assured most of the small and medium-sized businesses would look up to you for financial planning. The role of CPAs has evolved a lot. Business owners expect much more than number crunching from accountants. That’s your prime opportunity to set as a new revenue stream.
Role of Virtual CFOs
At most, businesses will adopt a hybrid working model for the next few years. The remote working models are not fading away anytime sooner. The trends will increase as tech developments set in for the much-needed transition in the financial services industry. This is your time to step up as a leader and offer the services of a Virtual CFO.
Data analytics and research is another business aspect that businesses are keener to adapt sooner than later. You have got the skills, just assemble the right tools. Turn your financial statement ratios into valuable data insights and fill up the gap for many businesses. It is another important service that modern businesses seek increasingly from accountants.
Forensic Accounting and Audits
Perhaps one of the most neglected business areas by small and medium entities. The virtues of forensic inspections and investigative reporting can bring manifold benefits to any business. You have the skills and clients, include the scarce service offered by the least of your peers in your portfolio.
Business Strategic Advisory
CPAs have been the change catalysts. They are the strategists. CPAs are business advisors and management consultants everywhere. Large firms already expect the role of business advisory from modern CPAs. The trend offers substantial growth opportunities for your CPA firm as well. Embrace the challenging role and take your revenue streams to new heights.
Which Additional Services can you Offer?
It may not be the best solution for every CPA to step into advisory services straight away. It doesn’t mean you get short of options. You can add several other small services and automate them to increase your future revenues.
- Payroll services
- Tax Planning and Representations
- E-Commerce services
- Online training and Education on accountancy/taxation/bookkeeping
- Specialized accounting services
- Industry-specific accountancy
Why Move towards Diversification
Shredding the idea of diversification can be costly. Avoiding digital transformation can lead you to irreparable business losses. Upskilling is the need of the hour. More businesses expect proactive advisory from accountants now than ever before.
As the Financial Services industry moves towards digitization, you must plan to become an indispensable part of it. Since automation and software provide cheaper solutions to small businesses, they seek much more from accountants than number crunching.
Here are a few compelling reasons for you to diversify your CPA firm business services:
- It will safeguard your future in a transitioning industry.
- You’ll improve the Interpersonal skills to help your clients.
- You’ll be part of the digital transformation.
- You can harness the powers of creativity that automated tools lack for businesses.
- Most of the clients still prefer the human touch of consultancy provided you’re well equipped with modern tools.
How Pransform can help you grow with Diversification plans
Just peep into the broader range of our services. Look into the section of the “Problems We Solve”. Yes, that’s the winning approach that we take, and we want you to take the same route as well.
We offer services from accountancy, taxation, to e-commerce and software development. We believed the diversified range of products can best serve our clients. Many CPAs face the conundrum of opening up to their clients. The transition towards cloud accounting and digitization are here to empower your business. The digital transformation offers new horizons for your business.
With our years of industry experience, top-notch products, and a wide range of services, we can take you through the transition of the new CPA business world.