Most accountants still lack confidence in their ability to deliver financial advice services, according to Bstar research.
The Bstar 2016 Accountants Research Report suggests that 81% of accountants are unready to provide financial advice. This is lower than the 91% surveyed in 2015, which Bstar said indicated that accounting practices are increasingly recognising the need to provide financial advice in order to grow their businesses.
Despite this, the research also shows that less than half (41%) of accounting practice business owners had a proper growth plan in place for their business. Only 32% have segmented their client-bases and just 5% regularly survey their clients about their services.
Bstar chief executive Grant Bloxham commented that "competition for compliance fees is becoming more cutthroat, with aggressive discounting being used to retain clients. Practices are now valuing clients based on their lifetime value to the practice. Converting an existing client to an advisory client is a key growth strategy.
He added, "I am often asked what an advice practice looks like. It should have a minimum of 40% revenue generated from advice services and 60% to 80% of those advice services should be delivered by professional staff, not partners.
"In my view, every accounting practice has opportunities to build a successful advice practice."
We invite you to watch our latest video featuring Zurich Investments senior investment strategist Patrick Noble.
The question of how to generate a satisfactory return to meet investors' needs is becoming ... Watch video
We invite you to watch our latest video featuring the head of ANZ ETFS, Kris Walesby.
In it he introduces a new ETF, due for launch later in July, which tracks the Euro Stoxx 50 index of major companies ... Watch video
With an 8-14% per annum return objective over the long term, the Pengana PanAgora Absolute Return Global Equities Fund is clearly managed by a team with investment acumen and a well thought out process.
Broadly ... Watch video
Financial Standard editor Mark Smith presents a roundup of the week's biggest industry news and executive appointments. In this week's news:
O'Dwyer says life insurance back on the agenda
After being ... Watch video
We invite you to watch our latest video featuring Bell Direct chief executive officer Arnie Selvarajah.
In the video and accompanying article he explains how easily the increasing number of advisers using ... Watch video
Get it Daily
FREE to your inbox, get the Financial Standard Daily Email.