There’s a huge myth among bookkeepers and accountants that offering advisory services is restricted to regulated tax advisors, financial advisors, or “chartered” accountants. 

This belief has led many bookkeepers and accountants to question whether they can offer advisory services. 

However, I am here to quash this misconception and assure you that you can indeed provide advisory services to your clients.Providing advisory services is not only possible but essential for our clients’ success.

In this post, we will explore the various ways we can offer valuable advisory services without overstepping your professional or regulatory boundaries.

As bookkeepers and accountants, it is our responsibility to offer clients vital financial guidance and insights. Contrary to popular belief, advisory services encompass much more than regulated tax advice or financial guidance. As such, not all advisory services fall under the domain of regulated tax or financial advice. We have the expertise to offer valuable insights and assistance to our clients without crossing into regulated territories.

Let’s explore some essential – non-regulatory – advisory services that we can, and should, provide to our clients:

Informing clients about their projected tax liabilities, such as VAT/GST, Corporation Tax, or Self-Assessment, is a vital service we should offer. By helping them understand how much they need to transfer to their savings account ahead of the payment deadline, we empower them to plan their finances effectively. This is not tax advice but rather an essential aspect of financial management. 

We shouldn’t be letting business owners down by only telling them what their tax liabilities are a few days before the payment deadline. Instead, you should be informing them each month / week (or even day!) of how much of their turnover they need to put aside right now ready to pay their tax liabilities on the due date.

Reminding clients that a large bank balance without proper investment in the business (or other ventures) is not the most efficient use of their funds does not constitute financial advice. It’s simply providing them with food for thought so they can consider seeking specialised guidance from a financial advisor (who does need to be regulated!) if needed. Encouraging wise financial decisions is part of our role as trusted advisors.

Monitoring clients’ rolling annual turnover and engaging in conversations about their growth milestones is an invaluable advisory service. For instance, celebrating their achievement of reaching £5k+ months and discussing the potential upcoming requirement for VAT registration and helping them navigate how they are going to prepare for becoming VAT registered demonstrates our proactiveness to support their success. While this is not tax advice, it helps clients anticipate and prepare for necessary changes in their business operations.

Similarly, offering insights on whether clients would benefit from voluntary VAT registration or assisting them in understanding the different VAT schemes is not tax advice (which would need to be regulated). Instead, it showcases our knowledge and wisdom, helping them make informed decisions and consider important factors that impact their business.

Producing management reports, cash flow forecasts, and budgets that incorporate provisions for Corporation Tax, VAT, and expected dividends/drawings is not financial or tax advice. These reports provide business owners with a more accurate and clearer view of their expected business performance and the rewards they can anticipate for their hard work.

The myth that only regulated tax advisors, financial advisors, or “chartered” accountants can offer advisory services to clients is unfounded.

So YES – as a bookkeeper / accountant, you can (and must!!) offer advisory services to your clients.

By expanding our services to include advisory guidance, we meet the evolving needs of our clients. Going beyond basic financial reporting and compliance, we become their trusted advisors, fostering stronger client relationships and enhancing client satisfaction.

Providing advisory services also enables professional growth, enhancing your expertise and professional profile. Staying updated on industry trends and continuously developing your knowledge makes you a much more valuable asset to your clients and the industry as a whole.

I’m interested to know whether you had originally believed this myth too? Share your thoughts and experiences in the comments below!

So, now we know there is a huge world of advisory that bookkeepers and accountants can offer, that doesn’t cross into regulated advisory, it is time to embrace the advisory aspect of our profession and unlock the full potential of our roles as trusted advisors.

If you haven’t fully explored these services yet, consider the immense value they can bring to your clients and your practice – and this is before we even consider the additional revenue and profit it can generate for both you and your clients! 

By integrating advisory into your repertoire, you position yourself as a forward-thinking, proactive professional, capable of delivering holistic support that goes far beyond the numbers. Advisory allows you to guide and empower business owners, shaping their success and helping them achieve their aspirations.

Click on the “Schedule Time With Me” button where you can book a (free!) virtual cuppa with me; register for my next Advisory webinar or book a 1:1 Superhero session (power hour) depending on the help you need to take your advisory offering to the next level.

To celebrate this being my first post, I’d love to thank you for taking the time to read by offering you a significant discount on my Superhero (Power Hour) sessions – Book here before 18^th June to take advantage of the £51 saving!

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