In our experience in working with hundreds of accounting and bookkeeping firms who add a CFO/advisory service, there’s usually three different structures that the firm ends up looking like once it adds a CFO/advisory service:

Structure #1: Advisory as an Enhancement
Structure #2: Advisory as an Upsell
Structure #3: Advisory as a Replacement

Below is a short explanation of each. As you read through it, visualize the type of firm you'd like to have.

Structure #1: Advisory as an Enhancement

This is a firm that still offers tax and/or bookkeeping services primarily. However, they enhance their service by equipping their team with a business advisory service.

So, whoever on the team is performing the tax or bookkeeping work is also trained in advisory services. This, alone, will differentiate the firm from its competitors.

By offering a CFO/advisory service, this firm will be able to increase its fees for tax and/or bookkeeping services because they now include an advisory component. This will retain clients longer, which will allow the firm to spend less time on marketing and selling and more time to service additional clients.

Owners who own an “Advisory as an Enhancement” firm will either train existing staff to be advisors or they’ll delegate tax and/or bookkeeping work to lower-level staff and more senior staff will handle the advisory aspects of the service.

Structure #2: Advisory as an Upsell

This is a firm that still offers tax and/or bookkeeping services with the explicit goal of upselling their clients to higher-margin advisory services.

The firm’s clients already trust their accountant and, once the accountant explains their advisory services, they will be more willing to upsell to the advisory service.

By offering a CFO/advisory service, this firm will make most of its revenue on the higher value CFO/advisory services. While they’ll continue to offer tax and/or bookkeeping services to their clients, the goal will be to become their clients’ full-service accounting firm providing bookkeeping, tax and advisory services.

As with Structure #1, owners who own an “Advisory as an Upsell” firm will either train existing staff to be advisors or they’ll delegate tax and/or bookkeeping work to lower-level staff and more senior staff will handle the advisory part of the service.

Structure #3: Advisory as a Replacement

This is a firm that has completely replaced their tax and/or bookkeeping services and has positioned themselves as a highly sought after outsourced CFO/advisor.

This firm’s clients value the fact that someone experienced in financials is giving them advice for having a growing and successful business.

By offering a CFO/advisory service, this firm will make all of its revenue on offering CFO/advisory services. If they have any clients needing tax and/or bookkeeping, they usually have a small network of service providers with whom they’ll refer or white label their services.

Owners who own an “Advisory as a Replacement” firm are usually the advisor themselves and will spend approximately 50% of their work week on servicing clients and the other 50% on either getting new clients (if they’re not at capacity), managing their team, or simply taking the rest of the week off from work.

So, which structure would you like for your firm? In all three structures, you'll be taking the steps to "escape the accountants' trap" because you're offering something that your clients will value, which will allow you to charge more, which means you can stop trading time for money.

If you'd like to learn more about how to start offering CFO/advisory services, we'd love to have a chat with you.

Click here to schedule a call with one of our facilitators and we'll help you decide which structure is right for you and your firm.