SWOT analysis is a vital business strategy that helps companies evaluate their strengths, weaknesses, opportunities and threats (hence the acronym ‘SWOT’).
Many companies perform this task annually, but conducting a SWOT analysis is recommended whenever the business undergoes changes, be it entering a new market, launching a new product, or when the business environment changes due to external factors like rising inflation.
SWOT analysis helps businesses with cash flow management, contingency planning, and identifying new growth opportunities. Accounting firms can play a vital role in this process by providing clients with the comprehensive financial data they need to make informed business decisions.
This article will provide tips on how accounting teams can help clients identify their strengths, weaknesses, opportunities and threats.
1. Provide business advisory services for SWOT analysis
Many accounting firms are choosing to expand their services beyond tax planning and bookkeeping to include business advisory services and data analytics.
Providing your clients with an in-depth analysis of their financial health will ensure they have the expert guidance they need to assess their strengths and weaknesses in areas like profitability, cash flow management, etc.
Financial forecasting services is another key area where accounting firms can differentiate their offering from their rivals and play a pivotal role in helping companies achieve their long-term financial objectives.
Bonus tip for advisory services: Upgrade your accounting tech
Ensure that your financial analysis data is visually appealing and easy to digest by investing in data visualisation software like Microsoft Power BI, Tableau, Klipfolio etc.
These accounting tech tools ensure the security of your client’s sensitive financial data and offer real-time analytics updates, so your clients’ numbers will always be up-to-date.
2. Communicate regular industry updates to keep your clients informed
The accounting industry is constantly shifting. Whether it’s changing rules around accounting deadlines, reporting standards, or any other regulatory developments, ensure you regularly update your clients on the latest industry news and trends.
For instance, sending monthly or quarterly newsletters is a great way to ensure your clients have all the information they need to make informed decisions about their brand.
Creating company blogs, social media posts, and even hosting webinars can also help you explain key pieces of industry information in a way that’s easy to understand.
For more tips on getting your content marketing strategy right, read this previous article.
3. Anticipate future business needs
Accounting firms can minimise the ‘weaknesses’ quadrant of their clients’ SWOT analysis by ensuring their business complies with all applicable accounting tech standards and reporting requirements.
Consulting with your clients regularly on their future plans can also help you prepare their business for international expansion (and the changes in regulatory requirements that go along with it). For more information on how your accounting firm can help companies to expand internationally, read this previous article.
How often your accounting firm reaches out to clients depends on their accounting needs. However, many companies reach out quarterly or twice annually to bolster their client/accountant relationship. So, make sure you are asking about key objectives during these catch-up appointments.
Introduce your clients to businesses that can spur growth
Accounting companies are well-placed to introduce their clients to other businesses on their books that can help their clients grasp new opportunities or minimise threats to their brand.
For example, your accounting firm may be in the position to introduce companies to trade finance specialists to help them with their cash flow management.
Likewise, suppose your clients’ businesses are at risk due to circumstances like supply chain disruptions. In that case, you may be in touch with a supplier company that may be able to help diversify their supplier pipeline.
Make the most of your contacts to help ensure the long-term sustainability of both your and your client’s companies.
Help your accounting clients meet their financial objectives with INAA
Here at INAA, we’re on a mission to help professional accounting firms deliver best-in-class services worldwide.
We aim to make global business personal and encourage all of our members to collaborate and drive the conversation on accounting and auditing developments.
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