Why any Accountant and CPA Should Start Offering Business Valuation Services To Their Clients

Why any Accountant and CPA Should Start Offering Business Valuation Services To Their Clients

Offering business valuation services can help their accounting firm grow and thrive. But getting started may feel overwhelming. Thankfully, the firm can partner with an experienced team that offers business valuation services. Alternatively, the firm can use a business valuation software, such as equitest – an online valuation platform - to streamline its success.

Their accounting firm provides valuable services to their clients. But what if you could kick that value up a notch and help them with their business valuation needs? Many firms are doing just that and branching out by offering other valuation services their clients may need.

From startup valuation, saas company valuation, or an established firm, their clients can provide many valuable valuation services. And now is the best time to start offering these services. Here is why.

Why Now is the Best Time to Offer Clients Valuation services

Adds Value to Their Practice

Many accounting firms and CPAs typically focus on just a few essential services, such as:

• Accounting
• Bookkeeping
• Tax Planning
• Tax Preparation

However, their clients likely want and need more valuation services, such as retirement planning. Offering these services adds value to their practice.

Additionally, they can enhance customer commitment when their clients feel like they can turn to you for much of their business valuation needs.

Their firm already has a solid client base, and you already know their clients' financial situations. Offering business valuation is a natural next step. It allows accounting firms to use their information to help clients grow.

Providing valuation services does more than just help their existing clients. It can help you attract new clients as well. If other accounting firms in the region only offer essential accounting services, business valuation services will edge the competition.

Business valuation services are in-demand. That's why only 33% of the accountant firms that offer company valuation services are a big surprise.

Gives You Smooth Cash Flow Throughout the Year

Many accounting firms struggle to maintain steady cash flow throughout the year. When you're focused primarily on essential accounting services, their clients will generally only need their services towards the end of the quarter or during tax season.

If the bulk of their revenue comes from essential accounting services, cash flow may be limited for the rest of the year.

But when you offer valuation services in addition to their core services, clients can come to you at any time of the year for help. Their valuation services act as an additional income stream to provide smooth cash flow year-round.

Allows You to Serve as a One-Stop-Shop for Clients' Financial Needs

Offering business valuation services allows their firm to serve as a one-stop shop for their client's financial needs. Their clients already know and trust you. Suppose they need additional valuation services that you can now provide. In that case, they may be more inclined to use their firm rather than working with someone with whom they have no relationship.

Suppose you expand their services to include a business valuation. In that case, their firm could save them the hassle and frustration of researching, evaluating, and comparing other providers. Besides adding value to their practice, you're also providing convenience to their existing clients.

When to Get Started: During Their Post-Pandemic Year Check-in

A lot has happened in the past year - or two. Markets are rising, some businesses have grown, and others are struggling to return to pre-pandemic revenue levels. Portfolios have benefited from a rising stock market.

However, tax season is a great time to perform a post-pandemic check-in for clients who need help with or have questions about:

• Investment planning
• Individual insurance
• Retirement planning
• And so much more

A financial check-in offers the opportunity to learn what clients need while also offering them the services they want.

What About Fees? How Much Should You Charge?

Suppose you've decided to start expanding their service offering to include business valuation services. In that case, you may be wondering how to charge clients for their new offerings.

You can use many pricing models, but some of the most common ones include:

Fixed-Fee

Some accounting firms use a fixed fee pricing model for their business valuation services.

A fixed fee can be beneficial for both the clients and their firms. The clients know exactly how much they will pay for their service, and you will have an easier time getting clients to jump on board with their new services.

Some firms incorporate an annual cost of living increase in their fees.

Hourly

Hourly fees are becoming less common, but this pricing method can be a good option when accounting firms first start working with clients. When you charge an hourly fee, you're covered for unexpected use of resources while determining the services the new client needs.

At the same time, some clients may only have the budget for 10 hours of work, so when you've worked 10 hours, you would have to stop or renegotiate the price.

Offering business valuation services can help their accounting firm grow and succeed. But getting initiated may feel overwhelming. Rather than taking on this new service line entirely on its own, the firm has two options. The first is to consider partnering with a third-party firm that offers business valuation services. The second is using business valuation software. If you like to start offering valuation services, contact us to schedule a 1-to-1 demo for the equitest - online valuation platform.