The Expanded Role of the CPA

A life-line -- that is what most businesses are looking for nowadays. Someone or something that can help them successfully navigate the rough waters of the current economic climate. For most businesses, salvation is sitting right in front of them – in the person of their CPA.

One of the most deeply entrenched business relationship models is that between a CPA and his client. Over the years, the role of the CPA has expanded well beyond the conventional model of handling clients’ books and records into that of ‘trusted advisor’ in all facets of a client’s organization. With many businesses today in survival mode, we find an even further expansion of the role of CPA -- creating a new environment complete with both challenges, and rewards, for those in the CPA community.

“Clients are asking for more service and demanding more precise information,” notes Steven Sundack, CPA, Commack, New York. “They want you to take a look at their overhead. They want to know if they’re charging the right rates to their customers. They want you to tell them point-blank how they’re doing, if they can make it, or not. It’s important to know your clients to help them.” Steven first opened the doors of his practice in 1979, and now with a client base of more than 300, has seen a new-found significance of the full service model in the CPA community. Embracing the expanded service model not only benefits your clients, but can protect your practice as well. “With so many businesses closing,” Steven notes, “we don’t want to lose 10-20% of our clients. We need to be as proactive and creative as possible to add value and keep our clients going.”

Meeting heightened service demands entails not only taking a closer look at your client’s business operations, but advising a specific course of action. This may mean the following steps:

1. Lowering their operational costs. (ex. researching competition to counsel on service rates)
2. Advocating for their business. (ex. successfully renegotiating a lease with the landlord)
3. Using your role as a financial advisor with institutions (ex. working directly with a client’s bank to reinstitute a credit line)
4. Becoming a strategic extension of their management team (ex. recommending personnel cutbacks, implementing a marketing plan)

Steven advises his clients to watch and conserve their cash, don’t take on too much debt and don’t commit too far. “Clients need to put themselves first in their business. At the end of the week, they must be able to take home a paycheck.”

Taking to heart his full-service role, Steven’s practice has expanded to offer insurance and payroll services to his clients. “If I can save a client $25,000 in insurance expense, for some, that’s the equivalent of writing $250,000 worth of business.” Steven recommends, “If you don’t offer these types of services, it’s important to partner with other associates who can help you.” Joining a network group is a good source of potential partners, as well as referrals.

In considering how to handle compensation for the extra services provided, it’s important to remember that now is not the time to start giving extra bills. “Everything is looked at. Things that weren’t questioned before are now being questioned,” notes Steven. Also, many clients are also asking for a reduction in fees. “For some, I do give a temporary reduction because we really are all in this together. We have to bend like everyone else.”

Steven is confident he and other like-minded CPAs can reap benefits from this new call to service by their clients. “I’m providing service all day – that’s how my business has grown.” The extra hard work and concessions pay off by helping clients survive, and thrive, in this economy. Steven confidently notes, “If my client grows, I grow.”

There is no doubt that strong relationships with customers are key to retaining and growing business. Especially in today’s economy, solid client relationships are not sustained by product or price alone; they must consistently be nourished with exceptional service. Most would agree, bringing this ‘full-service’ relationship model to fruition can stave off attrition and be a harbinger for success for both you and your clients, even in the toughest economies.