The role of accounting firms in the Finnish business world is changing rapidly. Traditional bookkeeping and financial statement services remain the core business of accounting firms, but an increasing number of clients expect more from their accountant: strategic advisory, financial forecasting, and practical help finding financing solutions. According to a study by the Finnish Association of Financial Professionals, 67% of Finnish accounting firms already offer some form of advisory services in addition to basic bookkeeping.
Financial advisory is a natural extension for accounting firms. An accountant has a better view of a client company's finances than any other external party. Monthly bookkeeping reveals cash flow trends, changes in accounts receivable turnover, and deteriorating liquidity often months before the business owner notices the problem. This information is invaluable, but it often goes unused because the accounting firm does not actively analyze cash flow on the client's behalf.
Why Should Accounting Firms Offer Financial Advisory?
Financial advisory creates added value on three levels. First, it deepens the client relationship and makes the accounting firm a harder-to-replace partner. Clients who receive financial advisory from their accounting firm switch providers less frequently than those who receive only basic bookkeeping. Second, financial advisory creates a new revenue stream: cash flow analysis, financial planning, and assistance with financing negotiations are services clients are willing to pay for. Third, it differentiates the accounting firm in a market where the price of basic bookkeeping is under constant pressure from automation.
Benefits of financial advisory for accounting firms:
- Deeper client relationships and lower client churn
- New revenue stream from advisory services – cash flow analysis, financial planning, financing search
- Competitive advantage in a market where basic bookkeeping prices are declining due to automation
- Better understanding of clients' businesses, which also improves bookkeeping quality
- Ability to identify financing needs before a crisis and guide clients to the right solution
- Partnerships with financing companies can generate additional referral income
Cash Flow Analysis – The Accounting Firm's Most Important Tool
Cash flow analysis is the foundation of financial advisory. It involves systematic examination, trend analysis, and forecasting of incoming and outgoing cash flows. The accounting firm already has all the necessary data: sales invoices, purchase invoices, payroll, taxes, and other fixed expenses. In practice, cash flow analysis means compiling this information into a single view that shows when cash is tight and when there is a surplus.
In practical cash flow analysis, accounting firms should pay particular attention to the days sales outstanding (DSO). If the turnover period is lengthening month over month, it means either that clients are paying more slowly or that payment terms have increased. In both cases, the company's cash flow weakens. When the accounting firm notices this trend, it can proactively suggest invoice financing to the client – a solution that converts accounts receivable into cash within 24 hours instead of waiting 30–90 days for the customer's payment.
According to the Federation of Finnish Enterprises' SME Barometer, 42% of SMEs wish their accounting firm would provide more proactive financial advisory. Financial advisory is a concrete way to meet this expectation and stand out from competitors.
When to Recommend Invoice Financing to a Client
An accounting firm's bookkeeper is in the best position to identify situations where invoice financing would benefit the client. Typical signals include: growing accounts receivable relative to revenue, recurring cash shortfalls on payroll dates, emerging VAT or tax debt, a major new customer with long payment terms, or a growth investment that the cash reserves cannot cover. In these situations, invoice financing offers a fast and flexible solution without the collateral requirements of traditional bank loans.
Situations where invoice financing should be recommended:
- Days sales outstanding (DSO) exceeds 45 days and is growing
- Client has recurring cash shortfalls on payroll or tax payment dates
- A new major customer with long payment terms (60–120 days) threatens cash flow
- The company is growing rapidly and working capital cannot keep pace
- Seasonal fluctuations cause predictable cash shortfalls during certain months
- VAT settlement dates regularly cause liquidity problems
How to Put Financial Advisory into Practice at an Accounting Firm
Launching financial advisory does not require major investments or specialized expertise. The first step is to make cash flow analysis part of the monthly reporting process. Many financial management software solutions have built-in cash flow reports that the accounting firm can activate for its clients. The second step is to arrange a quarterly financing review with clients to discuss the cash flow situation, financing needs, and potential solutions.
In practice, the accounting firm does not need to be a financing expert itself. It is enough to identify the financing need and know how to guide the client in the right direction. Partnering with financing companies is an effective approach: the accounting firm identifies the need and refers the client to the financing company, which handles the financing process. Everyone benefits: the client receives financing, the accounting firm delivers added value, and the financing company gains a new customer.
Pricing Financial Advisory at an Accounting Firm
There are several options for pricing financial advisory. Some accounting firms include basic cash flow analysis in their monthly package as added value that strengthens the client relationship. More in-depth financial advisory – such as financial plan preparation, financing option comparison, or assistance with financing applications – is typically priced on an hourly or project basis. Some accounting firms have also established partnerships with financing companies and receive a commission on successful financing referrals.
Starting financial advisory at an accounting firm is an investment that pays for itself through better client relationships, lower churn, and new revenue streams. The most important thing is to start: incorporate cash flow analysis into your monthly reporting, identify clients with financing needs, and actively offer help finding financing solutions. Your clients will thank you for spotting the problem before it became a crisis.
