Regular readers of The Bullet may recall me throwing out dates like 1928, 1931 or 1938 when referencing the first documented advice to accountants urging them to go beyond compliance work and into ‘advisory.’
Truth be told, the reason those dates have fluctuated is because… well, I couldn’t remember.
But thanks to writing a section for Hitendra Patil’s upcoming book on advisory, I decided to check my facts.
The quote I’ve been referencing all these years?
It comes from a book titled Practical Business Administration, published by the American Technical Society in Chicago… in 1931.
1931: A Blueprint for Modern Advisory?
The book lays out how accountants should support businesses based on their privileged access to financial data. It champions:
- Management Accounting – Real-time insights and guidance to business owners
- Strategic Planning – Going beyond the numbers to shape direction
- Budgeting & Org Design – Creating organisational charts and financial plans
In short, it teaches that control for both the accountant and the client comes through the proactive use of information.
Sound familiar?
If that advisory mindset was being laid out in 1931…why hasn’t it stuck?
We had mini booms of advisory in the 1950s, 1970s, 1980s and the big advisory wave of the 1990s and 2000s and yet…
Many practitioners today still hesitate:
“Should I go beyond compliance?”
“Will my clients even pay for it?”
“I don’t want to feel pushy…”
Let’s be direct here, that’s not a pricing problem, that’s a self-esteem problem.
The fear of rejection, the fear of confrontation etc.
You’re paying the price, literally, for this continued approach. Meanwhile, PE Firms Aren’t Hesitating.
Last year in the UK: 71 private equity deals in accountancy. In the US: fewer deals but much bigger numbers.
Why?
Because investors love:
- Predictable recurring revenue
- Forecastable cash flow
- Upsell opportunities through corporate finance
It would appear that business of all sizes WILL pay. So, if you still insist on saying:
“Well, I couldn’t possibly…”
“I don’t have the bandwidth…”
“Clients just won’t pay…”
Ask yourself:
If everyone else can, why can’t you?
Bissett’s Bullets for the Week:
- Clients will pay for advisory the moment you believe you’re worth being paid for it
- You are being paid for it, your track record proves it
- If you don’t offer help, someone else will (maybe even your client’s software)
We’re nearly 100 years on from James O McKinsey’s timeless advice. (James McKinsey…sounds like a consultant’s name, doesn’t it?)
He didn’t wait, and neither should you.
To your success
Martin
