The vast majority of SME bosses – 95% – say that their accountants have strategic value. But although 44% describe the relationship with their accountant as professional, only 8% would call it outstanding. That’s according to research from accounting software brand FreeAgent.

For SME chiefs, the most vital skills for accountants are high attention to detail (55%) and analytical flair (42%), followed by problem solving (39%), regulatory and policy awareness (39%) and clear communication (32%). All respondents said it was important for accountants to build a diverse skill set.

However, that low ‘outstanding’ score suggests that accountants’ skills are not broad enough for their target market. And – perhaps worryingly – less than a third of accountants who took part in the study have taken steps to widen their offerings to anticipate demand for new services.

Embracing solutions

To meet SMEs’ needs, accountants must realise that number crunching is becoming less important, says Steven Englander, founder and CEO at Manchester-based Accounts Direct. The starting point for accountants who want to develop the skills most sought after by SME chiefs is to not only know their clients’ business, but the people behind it, too.

“Once you understand the dream and obstacles – including emotional goals – you can build reports that matter, act in step with operational plans and ensure that efficient system software is applied and understood,” he says.

The process of preparing accounts should tell you a huge amount about the company and its leaders, Englander says. Combine that with a grasp of the SME’s sector-specific challenges and the accountant becomes a vital part of the business.

Clear communication will ensure clients understand and embrace any proposed solutions, Englander notes. To support that, case studies or feedback from existing clients can help to prove your competence, Englander adds. “Regular blogging and a strong online presence will support your marketing. And providing your clients with tutorials, industry knowledge and other general information will help to prove you’re the best accountant to choose.”

Targeted initiatives

Accountants should tailor their marketing messages at SME pain points and highlight their skill for solving them, says Vipul Sheth, Managing Director of AdvanceTrack Outsourcing, an organisation that helps accountancy practices transform their business processes.

“Update your services often, so you’ve always got fresh things to shout about to new and current clients. In your cross-selling, explain how those new services can provide clients with holistic solutions for their challenges,” Sheth says.

Sheth also recommends targeted initiatives. A good start, he says, would be investing in regular training to keep up to date with industry changes, regulations and new technologies. Practices should also organise problem-solving workshops, case study breakdowns and simulations to help staff tackle complex issues.

Practices that are in a position to hire should diversify their talent pools, Sheth says. Recruiting professionals with complementary skills – such as data analytics, or other tech expertise – can bring fresh viewpoints and add value to client discussions.

“Put it this way,” he says: “you want to ensure that your targeted approach positions you as an indispensable partner.”

Englander says practices also need a clear idea of what their ideal clients look like. As such, visiting networking events, industry talks or online groups relevant to their target market can be hugely beneficial.

Horizon scanning

ICAEW Head of Business Simon Gray, says SME chiefs must not underuse their accountants by focusing purely on the numbers.

“You have to be receptive to advice and opportunities,” he notes. “If you see your chartered accountant as simply serving a compliance need, you are missing not just the breadth of skills they can bring to your business, but their feel for the broader economic landscape, informed by their work for the other clients they serve.”

Gray points out that SME owners can sometimes work too much within the business and forget to work actually on the business. The risk is that they may react to issues as they arise, instead of proactively anticipating what could hit them in six months’ time.

“The role of the chartered accountant is no longer just about compliance, but horizon scanning – helping clients navigate hurdles and explore opportunities,” Gray says.

“Two areas where chartered accountants can be particularly helpful are sustainability and technology. While larger organisations are likely to have in-house expertise, SMEs will typically rely on external advice,” Gray adds.

Regular, honest conversations between accountants and their SME clients on company goals and challenges are essential to allowing accountants to focus and tailor their services, Sheth says. 

Mark Law, Managing Director at business consultancy Gain Line, says his company used to have a more traditional relationship with its accountants. “However, they now act as an extension of our team, as a fully outsourced finance function, and I work directly with them on a weekly basis.”

Law believes the new way of working has been fundamental to the business’s continued success: “That enables us to tap into their knowledge and expertise across all areas and provides us with far greater business insight to help with our decision-making and strategic direction. Our accountants also run regular webinars and are very proactive with regards to the economic climate. Our communication is two way and collaborative throughout.”