What are SMBs Looking for in their Accounting Firm?

A recent report from BILL, the Accounting Firm Hireability Index, highlights what small and medium-sized businesses (SMBs) are looking for when choosing and retaining their accountants. The report is based on a survey of 1,377 SMBs on how they would rate their accountants and what factors are important to maintaining a satisfactory business relationship.

Overall, the survey found that SMBs are happy with their accountants, and loyalty is on the rise. SMBs gave their accounting firms an average Net Promoter Score (NPS) – a standard question asked to understand customer loyalty and satisfaction – of 40. For context, anything above a 50 is considered excellent – and the NPS for accounting firms has almost doubled since BILL’s last hireability survey was conducted in 2019.

“The message from SMBs is clear: their accounting firms are an integral part of their overall success,” said Richard Corn, Director of Product Management at BILL. “Once foundational trust has been built, it is up to accountants to ensure their clients remain satisfied and continue retaining their services.”

Below are a few of the most important attributes SMBs are looking for when choosing their accounting firm.

1. Keeping up with Technology

Accounting firms have been adopting new technology to enhance different areas of their practices, but not all firms are adopting at the same pace. SMBs want to know that their accountants are using the latest technology or have plans to introduce it into their tech stacks. BILL survey found that 79% of SMBs would reconsider their accounting firm if they did not stay up-to-date on the latest technologies.

More than four-in-five surveyed SMBs (83%) said they would leave or stop referring their accounting firm if they had trouble answering their tech questions. Staying up-to-date on technology allows firms to show their knowledge in the space and provide insight to their clients. This shows that choosing the right tech stack – and not just the one with the most bells and whistles – will make a difference in the overall client experience.

2. Build on Trusted Advisor Relationships

Like any client service relationship, SMBs value a positive experience when working with their accountants. While this traditionally focused mainly on the day-to-day accounting work needed to run a business, SMBs are increasingly looking for a trusted partner that can provide financial advice. This is an area where accounting firms are currently succeeding: survey results showed that 89% of surveyed SMBs consider their accountant to be a trusted advisor.

“Trust is important,” Amy Marshall, Director of Growth of Breakwater Accounting + Advisory Corp noted. “Before we start getting into our services, we want to understand what they’re trying to address. Once they feel trust, I can start bringing in the value.”

Listening to clients – and finding opportunities to showcase that you understand their business goals and challenges – is essential for accounting firms to continue demonstrating this advisor role.

3. Expanding Services to Provide Additional Value

SMBs want their processes to be streamlined, and part of this is limiting the number of providers they need to work with. Survey results found that 58% of SMBs are interested in additional services from their accounting firm, and the more connected services a firm can provide, the better. These services can range from strategic advice to financial planning to spend and expense management and more. Using a technology provider that combines accounts payable, accounts receivable, and other processes to make accountants more nimble creates a better experience for SMBs.

4. Continue Going Above and Beyond

Providing accounting services is – obviously – expected of an accounting firm. But the firms that stand out and get major kudos from their SMBs are the ones that go above and beyond what it means to be an accountant. This is not only a nice-to-do, but is becoming increasingly essential:

83% of surveyed SMBs said they'd leave or stop referring a firm if it didn't demonstrate this trait.

“Excellent client service means more than just number crunching – it’s about proactively jumping in to help when clients run into challenges,” said Corn. “From small wins like locating an error that had been plaguing a client to larger undertakings like building a new financial model, accountants can show they are a value add to their SMBs beyond the traditional expected work.”

Proactive communication also goes a long way for SMBs, with 67% noting it is an issue if they only hear from their accountants when there is a problem. Reaching out in a timely manner and being prepared with necessary answers may not seem like big to-dos, but ensuring these practices are enshrined in your firm can make a big difference when SMBs are considering whether to keep their accounting firm

Conclusion

While it may seem straightforward for how accountants can continue making a positive impact on the SMBs they work with, there are always nuances to every relationship. In general, if an accountant is working to provide more than just the basic services, offer strategic advice, and continue being a trusted advisor, our survey found that an SMB is more likely to keep their business relationship with their accountant.

About the Research

This survey was conducted in July 2023. The total sample size was 1,377 and responses were gathered online anonymously from SMB owners and professionals responsible for hiring and working with accounting firms. You can access the entire report here.