The Big Shift: The Courage To Embrace Change
As leaders in the CPA profession, we often find ourselves caught in the day-to-day demands of compliance, client management, and operational efficiency. But let me share something I’ve learned from years of working with CPA firms, which was highlighted in a recent conversation with a forward-thinking leader: the future belongs to those who embrace an advisory mindset.
What does it mean to have an advisory mindset? It’s about stepping beyond the traditional roles of a CPA.
Instead of just focusing on compliance or transactional tasks, an advisory mindset embraces a broader view—helping clients navigate change, solve strategic challenges, and seize new opportunities. It’s about becoming a trusted partner, not just a service provider.
Think Differently. Achieve more.
There are growing pressures on small to midsize CPA firms to make this shift. Many firms, stretched thin by staffing shortages and rising client demands, find themselves at a crossroads.
The traditional way of operating—where billable hours dominate the conversation—is no longer sustainable. Technology, AI, and evolving client expectations are pushing us to rethink our approach.
It's time to think differently and recognize the importance of “working on the business, not just in it.” As an analogy, some mechanics are great at fixing your car but fail to service their own vehicles. Advising clients on strategy while neglecting your own is a form of self-negligence.
This disconnect is not due to a lack of knowledge but often a scarcity mindset. Fear of losing revenue can prevent firms from letting go of low-yield clients, implementing new technologies, or creating the capacity to innovate.
The Big Shift
Shifting to an advisory mindset requires a move from scarcity to abundance. It’s about recognizing that firing unprofitable or high-maintenance clients frees up resources to focus on better opportunities.
Invest in tools and training to improve efficiency and elevate your team's skills and the services you provide. And most importantly, make time for strategic, future-focused conversations with clients rather than getting bogged down in transactional work.
This transformation also demands execution. Many firms recognize the value of advisory services but struggle to implement the necessary changes.
Execution, as Tom Peters wrote, is the last 95%. Without it, the best intentions mean nothing.
So how do we, as leaders, foster a culture that encourages and builds a more advisory mindset in our firms? Here are four actionable steps:
Invest in Continuous Learning: Equip your teams with the skills and confidence to move from compliance to advisory. This might include training in strategic planning, technology adoption, and understanding broader business dynamics. Encourage curiosity and support professional development that aligns with this shift.
Create Space for Strategic Thinking: Allocate time for reflection and planning. Whether through team retreats, mastermind groups, or dedicated hours each week, allow your staff to focus on the firm’s long-term vision and how they can better serve clients beyond the numbers.
Redefine Success Metrics: Move away from measuring success solely by billable hours or revenue and start incorporating metrics that reflect advisory activities. Celebrate successes like helping a client achieve a major milestone or implementing a new technology that boosts productivity. Recognizing and rewarding these wins will inspire your team to embrace the advisory approach.
Partner With an Expert: You don’t have to go it alone or start from scratch. With the right partner, tools, and technologies, you can systematically implement advisory services that will save you time, energize your staff, and benefit your clients. Align with tech providers that understand CPA-specific needs and prioritize continuous staff training to ensure smooth adoption without losing the human element your clients value.
Some Final Thoughts
Your firm's future lies in becoming advisors-truly trusted advisors. This requires courage—courage to embrace change, invest in technology, and let go of what no longer serves you and your firm. As one industry leader aptly put it, “Value is a consistent march forward.” Let’s step into that future together, leading with purpose and vision.
Until Next Time!
