How Can CPAs Adapt to Changing Client Needs?

Every business needs to evolve over time to keep up, and CPA firms are no exception. The landscape for certified public accountants has changed dramatically in recent years, though it may not always be easy for firms to adapt to these changes.

Consumers today can easily get help at the touch of a button for issues with electronics, a late delivery, or to get dinner without leaving home. CPA clients are ready for similar services from their accountants: They want fast, reliable help with their business and finances. They want a certified public accountant who knows their business as well as they do and cares about its success. Firms must transition into an advisory role in which they provide personalized data analysis and financial advice to clients. So, how do CPAs take advantage of clients’ changing needs and provide better service? Read on to learn more.

Shifting into an Advisory Role

Picture yourself asking for directions in a new area. In years past, someone might give you directions that sound a bit like this: “Head down the road about four miles, then turn left at the house with the red mailbox. Take your second right, then turn right again when you come to the dirt road past the old elm tree.” These directions make sense to the person giving them, but they can go right over the head of the person they’re trying to help. Today, with the help of GPS technology, you are guided, step by step, by a friendly navigator in your car who can help you fix any wrong turns along the way. Your GPS navigator can give real-time updates on obstacles like traffic accidents that might impede your progress.

The changing landscape for CPAs is not unlike this situation. CPA clients expect the same kind of advancement in services to help their businesses succeed. Rather than pointing the client in the right direction and setting them loose, CPAs should give clients personalized service to help guide them along the way. The role of a CPA is no longer to check in a couple of times a year during tax season or for audits. Instead, the role is shifting to serving as an ongoing, around-the-clock financial advisor. Clients want to be able to check in whenever they need guidance, and they need CPAs who will do that and also step in to keep clients going in the right direction when they don’t realize they’re off course.

In many ways, the COVID-19 pandemic has highlighted these needs. With the rapidly changing economy, stimulus options, and overnight alterations of business models, the value of a CPA advisor is apparent. While navigating the changes to their own firms, CPAs also needed to help clients quickly adjust and take advantage of financial assistance wherever possible.

Using Data to Help Grow Clients’ Business

In today’s world, data is king. CPA clients need an advisor who can harness all their data and use it to help grow their business. It is crucial for CPA firms to become experts in collecting, analyzing, and using data for their clients’ benefit—both now and on the road ahead. Turning raw data into usable information that a client can understand and use to grow their business is an important way for CPA firms to show their value each month, as opposed to a more infrequent model that clients are accustomed to.

Embracing New Technology

With this in mind, CPA firms must embrace new technology to continue to enhance their value for clients. In a recent survey, 66 percent of accountants said their firms needed to utilize technology more to compete. Advances in technology can provide new opportunities for CPA firms to serve clients with more in-depth analysis than ever before. Utilizing visual reporting, in particular, enables CPAs to deliver data to clients in a more user-friendly format. Visualization software allows advisors to take large amounts of data and convert it into personalized reports that give clear, usable insights into a client’s business. Taking full advantage of new technology requires more training for CPAs, but the time and investment will help firms utilize all the tools available to them.

The needs of CPA clients are changing, and it is essential for CPAs to adapt to the new landscape. CPAs must transition into an advisory role and use new technology for vital data analysis to provide more value to their clients.

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Justin Hatch is CEO of Reach Reporting .