Service-based Businesses Require People Needing Services
Why your business should offer cash management advisory to avoid chasing new clients.
ROI Rule Number 1: Not offering cash management advisory services to your current clients will almost 100% ensure your business gets stuck in a hamster wheel effect. Meaning, you’ll be stuck following a rather monotonous, repetitive, unfulfilling activity, and not achieving much progress.
As your clients start to desire cash management advisory services, you’ll be stuck always chasing new business. Think of it like a leak in a dam… some clients leak out and must be replaced at the top, only for more too slowly continue leaving.
But don’t worry, we’ve got some advice on how you can offer cash management advisory services to add more value to your current clients.
What is cash management advisory?
Cash management advisory services are almost exactly what they sound like. You or your firm provides expert advice with regards to how your client manages their cash flow.
This is an important service to offer because a lot of a business’s success simply comes down to good timing of incoming funds and outgoing expenses. Timing accounts receivable so it lines up with accounts payable can be a tedious process if you don’t know what you’re doing, and so many businesses look to expert advisors to help set up a system that works.
By linking accounting software to forecasting programs, businesses can see when money is coming in and when money needs to flow out, with the help of some expert advice from your CPA pals.
You can add cash flow management advisory to your firm’s list of services without tacking on heavy costs that hurt your profit AND while keeping your current client base.
Adding cash advisory services like forecasting and management adds another revenue stream while providing an immense value to your clients. Suddenly they have expert advice and insight towards balancing their cash in order to stay in the black as long as possible. As long as you can provide this type of value for your clients, they will keep your firm around.
Here’s how you can keep your clients coming back for more, through cash management advisory services:
- Find out where your client wants their sales to be on a monthly basis and advise them on how they can achieve this through key performance indicators that will indicate the health of the business. You can invite them to view their unique dashboard and use data visualization to show forecasts and “what if” scenarios they can use to help their decision-making.
- Take a look at the costs and ROIs coming from other business departments like marketing, sales, operations, and finance/admin. As long as your customer attributes their costs in these departments properly, you will be able to provide deeper insights in terms of costs associated with running the business.
- Keep your eye on their balance sheets and income statements ─ you can send virtual updates through your shared accounting dashboard and provide insight on how they can improve their margins and/or net profit. This information is readily available as long as you can connect your accounting software to the Dryrun dashboard.
- Provide accounts receivable and accounts payable information. Knowing how long it takes each customer to pay your client and how long their runway is, is valuable information. Being able to forecast potential unexpected expenses or whether they can afford to hire another employee or make a big purchase is also extremely valuable insight for your client. Sharing this information is as simple as the click of a few buttons using Dryrun dashboard, and you can take them through all this information virtually.
And those are just a few of the reasons why cash management advisory services are a huge incentive for your clients to stick around. As a bonus, they’re a huge draw to your business for potential new clients.
After all, the grass is greener where you water it 🙂 Start offering this service today ─ learn more about Dryrun or send us a message to set up a demo.