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Evolving from an auditor to an impactful adviser

Capitalise Apr 24, 2023

In 2004 the threshold for audits increased from companies with a turnover of £1m to £5.6m. Prior to this date, most qualified accountants trained in audit. Assuming most of these audit trainees were aged mid-20s at the time, those same individuals, if still in practice, are likely to be in senior leadership positions.

 

Further rises since that date have brought us to the current situation where most small companies are now exempt and therefore typically we only see audits where the company has turnover in excess of £10.2m. As a consequence, most audit firms have seen their audit assignments fall dramatically, some of whom decided to end their audit registration altogether.  Regional practices now focus much more on bookkeeping, accounting and advisory services.  

Released from the audit restrictions of independence and objectivity these advisers can now use their long-standing skills to have a huge influence on their clients’ business operations, growth and profitability.  

The newer firms of accountants in the profession are relishing that opportunity and are actively measuring the impact they are having. However, do some more traditional firms still struggle to forget the shackles of their audit training? Is the transition of culture from auditor to adviser smooth across the whole practice?

 

This blog runs through potential ideas on how those auditors in your firm could move beyond the trained auditors’ natural inclination to only observe and analyse with all their clients, but to give more when the client is no longer an audit. 

 

What more could you be giving to clients? 

  • Get 360 view of your clients cashflow

Capitalise for Accountants provides access to the Monitor dashboard, which includes public data from Companies House and Experian

Monitor gives you a series of insights that surface other potential conversations which can then be discussed in your client meetings. These include where the platform has identified a future potential working capital gap, adverse impact on credit scores or opportunities such as eligibility for funding, and many more. 

If the business uses cloud accounting, further insights are available, such as where bad debts are accumulating.

  • Shareable insights and reports

These insights can be shared with your client as a “Capital Report” which includes more information on credit scores and the company’s payment performance to its largest suppliers and lenders. 

Having a document such as this provides team members with extra confidence to open up wider commercial conversations. This can then lead onto discussions about your client’s strategy and produce further advisory work such as business planning, fundraising, exit planning or corporate finance. 

  • Get clients credit score professionally reviewed by Experian 

Through our Credit Review Service, powered by Experian, your clients now have the ability to potentially quickly improve their business credit score using new, relevant information, including data from their management account and debtor book. Working with a team of expert analysts, customers will determine whether newly submitted information will result in a positive outcome within five working days.

The service also offers small businesses a far more comprehensive and detailed insight into their current financial position, allowing them to review their current score, and find areas where they may be able to improve it. It also provides easy access to valuable tools and resources to help them confidently manage their credit score going forward.

 

  • Supporting your team all the way

The Partnership Management team at Capitalise are there to support firms to use the platform to best effect.  

This can include: 

  • Regular reviews of a client portfolio on the platform
  • Identifying the most urgent risks or opportunities
  • Coaching in advance of a client meeting
  • Training on funding or the importance of credit scores
  • Understanding of other products to strengthen the company’s balance sheet and provide increased access to working capital

 

Where next?

If you would like access to these tools to support your firm’s auditor, please reach out to Alex Clark, alex.clark@capitalise.com or call 07893 945351. 

 

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