Rick Telberg's Insider: Clients Clamor for More from CPAs
June 13, 2000 (SmartPros) — CPAs are looking at huge untapped opportunities to expand their practices by offering business clients a wide array of new services, products and advice, according to new market research.
"The survey findings indicate the existence of real opportunities for accountants to build relationships with their clients and to provide advice to them on a broad range of issues," according to a memo to the American Institute of CPAs from the Washington-based polling firm Peter D. Hart Research Associates. The report is being used by supporters of the plan to launch an AICPA-sponsored dot-com business linking small business with suppliers via their CPA.
But it also buttresses the long-range strategy of the profession and firms to take on an expanded role in business decisions and transactions. Many firms have already adopted a new view of themselves as not merely service providers, but also as a conduit of marketing and distribution for services and products produced by others.
"When business leaders are asked to estimate the proportion of their total annual expenses over which their CPAs have influence, the mean proportion is an astounding 17 percent," says the unnamed author of the Hart report.
And business clients are clamoring for more. Some 58 percent said their expanded relationship with their CPA firm evolved mutually and organically, with no real plan or intention. Another 27 percent revealed that they had to go out of their way to ask their CPAs to take on extra work beyond taxes or accounting. And in only 9 percent of the cases did the CPA firm actually come in and ask for more work.
The Hart pollsters surveyed some 403 business leaders and then weighted the results to reflect the true influence of small business in the economy.
Key findings include:
70 percent report that their accountants influence at least some part of their business expenditures.
25 percent say at least 20 cents of every dollar spent was made after getting an accountant's input.
94 percent place a "high level" of trust in their accountants.
Only 82 percent say the same for their lawyers.
Management consultants get the nod from 37 percent.
And networking consultants garner 31 percent.
52 percent of all businesses use their accountants for more than just taxes or accounting.
CPAs are typically involved in 55 percent of a business's decisions about new financial services, including selecting insurance, investments, employee compensation and 401(k) plans.
CPAs get involved in 33 percent of the decisions about selling, general and administrative spending, like office equipment, overhead, leasing a company car, packaging, or temporary staffing.
And CPAs are consulted on 14 percent of decisions about technology products or services, such as communications networks, selecting service providers, and setting up Web sites and conducting e-business.
