In a survey of over 1,000 small business owners, 86% reported considering their accountant a trusted advisor. In fact, business owners trust their accounts more than any other advisor, including family and friends, lawyers, and financial planners.

But that doesn’t mean there isn’t room for improvement in the business owner-CPA relationship. The same study indicated that only 61% of business owners are satisfied with the breadth of services offered to them by their accountants.

Clients across the financial sector are increasingly looking for comprehensive care from their financial professionals. Business owners in particular are looking for guidance with determining business structure, budgeting and forecasting, cash flow management, tax planning and business consulting. 

For CPAs, offering additional service might require more effort and upskilling, but it can also drive more revenue, improve client retention, and create powerful differentiators. 

One way to meet the increasing needs of business owner clients without investing significant time and resources in doing so is by leveraging a business valuation tool like BizEquity. 

Using what you already gather from your business owner clients – either an accrual basis financial statement, or a tax return and balance sheet information – you can generate an accurate, real-time business valuation using BizEquity’s proprietary software and seven-step process, which harnesses the power of big data to streamline the traditionally tedious, time-consuming and expensive approach to business valuation.

Offering business valuation software enables CPAs to improve client experience while driving bottom line growth for their firm by:

Providing Comprehensive Client Services

As we mentioned above, business owners are looking for services beyond traditional accounting and tax preparation. By incorporating business valuation into their repertoire, CPAs can assist clients in evaluating the worth of their businesses, enabling them to advise on payroll, gift taxing, cash flow forecasting, budgeting, succession planning, and more, meeting increased client expectations while  unlocking new revenue streams for the firm.

Enhancing Financial Analysis and Planning

Using a business valuation tool, CPAs can more effectively perform robust financial analysis for their clients. BizEquity’s software not only offers four estimates of business value, but it also provides 12 industry specific key performance indicators that can help business owners and their CPAs identify areas of improvement, optimize capital structure, and develop tailored strategies to enhance profitability and mitigate risks. 

Facilitating Better Business Decision-Making

Today’s business owners need to be able to make decisions quickly about expanding operations, investing in new products or services, hiring or cutting back on personnel, and/or managing inventory. By analyzing key financial data, market trends, and industry benchmarks using business valuation software, CPAs can evaluate the financial implications of various options and guide clients towards the most favorable outcomes. 

Strengthening Client Relationships and Retention

Business valuation provides business owners with valuable insights into the financial health and value drivers of their largest assets, fostering a deeper understanding of their operations. CPAs can leverage this information to proactively engage with clients, identify emerging opportunities, and offer tailored advice, resulting in greater client satisfaction, increased loyalty, and a higher likelihood of client referrals.

Expanding Revenue Streams

CPAs can use business valuation services to attract business owners seeking assistance with transactions, exit planning, or strategic decision-making – all additional services that have the potential to generate substantial fees for the firm and increase the overall value proposition. The diversification of revenue streams not only contributes to the financial growth of the CPA firm but also enhances its competitive position in the market.

Staying Ahead of the Competition

Offering business valuation gives CPAs a leg up in an increasingly competitive industry by enhancing their ability to provide comprehensive solutions, positioning  them as experts in valuation, and enabling them to deliver value-added services that go beyond tax preparation. 

To learn more about how BizEquity helps accountants better serve business owners, click here!