Accounting advisory services: How to build and grow your offer

Published Friday 10 July 2026

Table of contents

• Why are accounting firms moving beyond compliance?
• What do client advisory services look like in practice?
• How to start offering advisory services at your firm
• Take the next step with your advisory practice
• FAQs on accounting advisory services

Key takeaways

• Advisory services are growing fast for accounting practices. New technology, economic uncertainty, and client needs have made advisory services a significant growth opportunity for practices.
• There are lots of different advisory services you can offer, including tax planning, cash flow forecasting, industry benchmarking, and exit and succession planning. Some advisors become deeply embedded in clients' businesses, such as those in virtual CFO roles.
• To start delivering advisory services, you need to work out which skills are available in your practice and the areas your clients need support. Software with forecasting and reporting features also helps, because you can show clients a clear picture of their financial performance.

Why are accounting firms moving beyond compliance?

The role of accountants and bookkeepers is moving away from compliance work, and towards client advisory services. According to Thomson Reuters' 2026 Tax Firm Advisory Services report, 88% of respondents report that advisory revenue is growing faster than compliance revenue, and nearly nine in 10 plan to expand their firm's advisory services over the next year. Meanwhile, firms offering client advisory services (CAS) project their CAS-related revenue to double over the next three years, according to a CPA.com and AICPA benchmark survey.

There are several developments motivating this shift for practices. The pandemic increased economic instability, making it harder for US small businesses to survive and grow. Continued economic uncertainty since then has meant small business owners have faced challenges sustaining their businesses. Confidence is declining among US small businesses amid rising uncertainty, according to the US Chamber of Commerce.

Alongside economic uncertainty, the explosion of artificial intelligence in accounting means software is now capable of speeding up compliance work, and in some cases, automating it altogether. With less human input required to get compliance work done, practices gain additional hours and staff labor that can be used for advisory instead. Another benefit of modern software and AI is that practices can get access to reporting and forecasting tools, as well as live client data, which makes it easier to spot patterns and trends to advise on.

The difference between compliance and advisory comes down to direction. Compliance work looks backward, recording and reporting on what has already happened. Advisory looks forward, using real-time data and your professional judgment to help clients make better decisions about what comes next. That shift in focus is where the growth opportunity sits for your practice.

With software that can handle compliance and provide better data, practices gain the time and tools to deliver advisory services for clients that need help managing cash flow, increasing financial resilience, and preparing for the future. As well as supporting clients, growing your accounting advisory services can also make more meaningful use of your team's skills, providing challenging and rewarding work for them, and you.

What do client advisory services look like in practice?

Advisory services accounting practices provide usually include more regular time with clients. This could be face-to-face, or virtually. While compliance work can be delivered autonomously, and clients may only meet with you annually or quarterly, advisory services could see you spending time with clients every month, or more frequently. It all depends on what you're advising clients on.

Some common business advisory services include:

• budgeting and cash flow forecasting
• management reporting and financial analysis
• tax planning and legislative guidance
• goal setting, KPIs, and industry benchmarking
• exit and succession planning
• process automation and software advisory
• virtual CFO and outsourced finance functions

The depth and frequency of engagement varies by service type. A tax planning engagement might involve a handful of sessions per year, while a virtual CFO arrangement could mean weekly or biweekly meetings with deep involvement in operational decisions. The more embedded you become in a client's business, the more value you can deliver and the stronger the relationship becomes.

You may need to come to advisory sessions with specific reports, forecasts, and analyzes based on client data. You'll use this information to advise clients on their specific area of interest. For example, using expense reports and forecasts to guide a client who wants help cutting costs. In terms of charging, clients may pay a retainer fee for a set amount of advisory sessions each month, or advisory could be built into your monthly or annual fees.

How to start offering advisory services at your firm

When you're thinking about how to offer advisory services to clients, it's best to start small and build up your offer slowly. Here's a step-by-step guide:

1. Audit your team's skills to see what you can offer. Advisory work draws on skills like analytical thinking, clear communication, and comfort with data interpretation. Look at where your team is already strong. Some staff members might be great at budgeting or goal setting, while others can help clients select software and apps to speed up their admin.
2. Review your client base and their current needs. Are there advisory services that would address their challenges or create new opportunities for them? Start with the clients who already trust you and have the clearest need.
3. Create your offer. Select one advisory service, cost it, and spell out what it includes for clients: in-person meetings, deliverables, expected outcomes, and software required. Put this into a written advisory scope agreement so both sides are clear on what's included, how often you'll meet, and what the expected deliverables are.
4. Promote your advisory service and select one client to start with. Sell them on the service by showing the potential impact it could have on their business.
5. Agree a fixed period to deliver the service. For example, six months of cash flow planning and strategy.
6. Gather feedback once the advisory service has been delivered. Send a feedback form, review the answers, and roll out the service to further clients.

If you're concerned about the skills gap, you don't need to build an advisory team from scratch. Many practices start by pairing experienced team members with clients in areas they already know well. Over time, you can invest in training on topics like financial modeling, strategic planning, and client communication to expand what your practice can offer.

Take the next step with your advisory practice

If you have great client relationships, you already have the first step towards advisory services covered. Now, it's time to look at the skills in your practice and the areas your clients need support with, and use this as a basis to build your business advisory services on.

You can provide even better guidance when you have accurate data, clear visualizations, and live reports and forecasts at your fingertips. The Xero Partner Program gives you access to practice management tools, reporting dashboards, and a dedicated support team, so you can build the infrastructure your advisory practice needs to grow.

Join the partner program

FAQs on accounting advisory services

Here are answers to frequently asked questions about client advisory services and how to roll them out at your practice.

What is the difference between advisory and compliance services?

The biggest practical difference is in how you engage with clients. Compliance is typically billed per deliverable on a set schedule, while advisory is structured as an ongoing retainer with regular touchpoints. That changes the relationship dynamic: you move from processing transactions to sitting alongside clients as they make strategic decisions about hiring, investment, and growth.

How do you price accounting advisory services?

Price advisory services based on the value you deliver, not just the time you spend. Consider the financial impact your advice could have on a client's revenue, profitability, or cost savings. Many practices package advisory sessions into monthly or quarterly retainers at a fixed price, so clients know exactly what they're paying and what they'll receive.

What technology do accountants need to offer advisory services?

Reporting and forecasting software is essential, because it gives you a clear view of your clients' current financial picture and the ability to track the impact of changes over time. Tools like Xero Analytics Plus let you build dashboards and forecasts using live client data, making it easier to spot trends and prove the value of your advice with real numbers.

Can small accounting firms offer advisory services?

Yes. Smaller firms often have an advantage because they already have close client relationships and can move quickly without layers of approval. The key constraint is usually capacity, not capability. Consider ring-fencing a set number of hours per week for advisory work so it doesn't get crowded out by compliance deadlines, and price accordingly to protect that time.

What are the most profitable advisory services for accountants?

The most profitable advisory services are typically those where you're deeply embedded in a client's business. Virtual CFO engagements, ongoing cash flow management, and strategic financial planning tend to command higher fees because they deliver sustained, measurable value to clients over time.