Instead, they talk about what is happening in their business.

“We are busier than we have ever been.”

“Our margins seem to be getting tighter.”

“I am thinking about taking on another employee.”

“My business partner wants to retire.”

“Someone has approached me about buying the company.”

“I seem to be working harder but earning less.”

Hidden within each of these comments could be an advisory opportunity.

The challenge is recognising it.

Listen for change

Changes in a client’s circumstances are often the best indicators that advice may be needed.

Rapid growth might create cash-flow problems. A new employee could lead to questions about affordability and business structure. A retiring shareholder may require succession planning. An unexpected approach from a potential purchaser could trigger discussions about valuation and preparing the business for sale.

Even apparently good news can reveal issues worth exploring.

A client who proudly announces that turnover has increased by 30 per cent might reasonably expect congratulations.

But there are other questions worth asking.

Has profit increased as well?

Has the additional turnover created pressure on cash flow?

Has the owner needed to recruit more people?

Are existing systems coping with the increased workload?

Growth is not always the same as improved profitability.

Ask the second question

Recognising an advisory opportunity does not require accountants to become salespeople.

It requires curiosity.

If a client says that margins are falling, do not immediately provide an answer. Ask what has changed.

If they are considering buying another business, ask what they hope the acquisition will achieve.

If they are working increasingly long hours, ask whether the business could operate effectively without them.

Sometimes the most useful response is simply:

“Tell me a little more about that.”

The first comment tells you what the client is thinking about. The second question helps uncover the real issue.

Look beyond the annual accounts

Advisory opportunities can also be identified from the information already available within the practice.

A falling gross profit percentage, increasing debtor days, growing borrowing, unusually high cash balances or a substantial change in turnover can all justify a conversation.

The annual accounts should therefore be more than a record of what happened last year. They can provide clues about what the client may need to do next.

Start with five clients

You do not need to introduce an elaborate advisory programme across the entire practice.

Start by looking through your client list.

Identify five clients whose businesses are changing or where the numbers suggest that something deserves attention.

Then arrange a conversation.

You may discover that the advisory opportunities you have been looking for are already sitting within your existing client base.

You just need to recognise them.