Would CPA Firms Follow Their Own Advice?

Let’s start with a hypothetical analogy:

Cardboard Co., a trusted manufacturer and supplier of cardboard, discovers that many of its loyal customers also need paperboard. However, these customers are left to source it from other suppliers, some of whom are competitors that also sell cardboard. The leadership team at Cardboard Co. consults their business advisory firm—perhaps your CPA firm—and receives the following advice:

“Retool part of your operation to produce paperboard as well. By meeting more client needs, you’ll not only deepen relationships but also diversify revenue streams, protect market share, and gain a significant edge over competitors.”

It’s a strategy many CPA firms might recommend to their clients—but are they applying the same principle to their own business?

The Cardboard Co. Analogy, CPA Edition

CPA firms are Cardboard Co. in this scenario. They provide corporate financial planning and advice—the equivalent of “cardboard.” But their clients also need personal financial planning and wealth management—“paperboard.” Who better to provide these services than the firm that already understands their financial ecosystem?

Why Should CPA Firms Broaden Their Services?

Just like Cardboard Co., CPA firms can benefit immensely from expanding into wealth management and financial planning:

1. Generate Passive Revenue By offering wealth management, CPA firms unlock recurring revenue streams like advisory fees and asset management income. This passive income bolsters financial stability and significantly increases the firm’s enterprise value​​.
2. Be Future-Ready AI and automation are reshaping the accounting profession, making it imperative to evolve. Diversifying services ensures CPA firms stay competitive and aligned with changing client expectations​​.
3. Strengthen Client Relationships CPAs already hold a position of trust. Extending services into personal financial planning deepens that relationship, creating a one-stop advisory experience that fosters loyalty and satisfaction​​.
4. Enhance Career Satisfaction Diversifying services allows CPAs to engage in more fulfilling, high-value conversations with clients, reigniting their passion for helping people and businesses thrive​​.

Overcoming Common Barriers

Some CPA firms might hesitate, citing reasons like lack of expertise or concerns about workload. But solutions exist:

• Collaboration: The Integrated Advisory Network was built for CPA’s by CPA’s to provide all of the resources and support necessary to launch a Wealth Management practice in a CPA firm.
• Technology: Leverage automation to streamline compliance work, freeing up resources for advisory services​​.
• Upskilling: Invest in training staff to deliver these new services effectively​​.

Closing the Loop

The advice CPA firms would give Cardboard Co. is not just good business; it’s a roadmap they should follow themselves. By broadening their services, CPA firms can meet the evolving needs of their clients, protect themselves from competitors, and thrive in a rapidly changing landscape.

If you’re ready to take the leap, remember: transformation begins with small steps. Consider what your firm’s “paperboard” might look like and start retooling. Your clients—and your bottom line—will thank you.