Small business owners, however, tend not to see the relationship in quite the same way. To them, the relationship is expendable. As they see it, the CPA firm provides traditional financial services. And regardless of which firm provides that service, the small business stays afloat, working under the same principles it always has.

The 2003 Voice of Small Business and Accountants survey, commissioned by Intuit Professional Accounting Solutions, provides evidence of this inconsistency. The survey was sent to a national sample of 250 small business owners and 250 accounting firms. While the results definitely sting, they also illuminate several key areas accounting firms and CPAs should concentrate on to develop stronger relationships with the small business community.

Different Perspectives
Nearly half of the small business owners who responded to the survey say they aren't making many big business mistakes. Yet a majority of the accounting firms that responded believe most small businesses are making poor financial decisions -- something that could be avoided if they consulted with a CPA.

Many small business owners simply don't believe they need to foster a business relationship with an accounting firm, while others are so busy they neglect the obvious. One simple example is the small business owner who is so busy running his or her business that he or she neglects to raise prices. This is where the CPA needs to step in, says Gail Rosen, CPA, of Gail Rosen, CPA, PC, in Martinsville [New Jersey].

"My clients are so busy that they don't want to take the time to look at anything," she says. "Then I sit down and show them that they're not charging enough or they're overpaying for certain expenses. They get excited. You just have to start offering advice, and they'll start paying attention."

Small business owners do acknowledge and understand that they face unique challenges, such as time management, contingency planning, technology and market research. To address these issues, some accounting firms now offer clients "bundled packages" that combine traditional and client-specific services.
 
"I like to think of myself as an extension of the client's organization," says Anthony F. Bruce, CPA, of Anthony F. Bruce, LLC, CPA, in Cherry Hill [New Jersey]. I'm a roving CFO, and my clients love it. I do everything they need a CPA firm to do and then some hand-holding to help them be even more successful."

The survey also uncovered another surprising fact: Many small business owners don't understand what services accounting firms provide. They are unaware of the expanded, and even some of the standard, services offered by CPAs. Included among the list of unrealized services are payroll services, business consulting, bookkeeping, and audit and review services.

"You can't just say to your prospective clients, 'Oh, we do this,'" Bruce says. "Non-traditional services have to be a core part of your business plan if you're going to provide them, not an appendage of traditional services."

The Solution
Stronger, more aggressive and better marketing is the solution. CPAs need to define their services and the benefits they can bring to current and prospective business clients. Clients without technical expertise may not know how to ask for what they need, or even realize there is a service to provide them with a solution. Reviewing a client's overall business plan may reveal areas that can be improved. The CPA also needs to reach out to show small business owners how his or her services can make a difference in their day-to-day business operations and profits.
 
"I get referrals from current clients, and I do a lot of speaking and interviews to help people understand what I can do for them," Rosen says.

By marketing services through client education, CPAs and small business owners can become stronger strategic partners. Working to better learn and understand the business of their clients, CPAs also will be opening the doors to additional service opportunities.