Client Retention Through Benchmarking: Adding Value Beyond Tax Time

For many accounting firms, tax time is the busiest season of the year. It’s when client engagement is at its peak, but once the lodgement deadlines pass, maintaining meaningful client interactions can be challenging. The key to building stronger, longer-term relationships is ensuring clients see value beyond compliance.

One way to achieve this is through benchmarking. By using data-driven insights alongside strong advisory services, firms can provide ongoing value that extends well beyond tax season, leading to deeper client relationships and long-term retention

The role of accountants is evolving. Clients increasingly seek more than just compliance services—they want proactive, strategic advice that helps them make informed business decisions. Our latest Crunch Report confirmed an important trend: quality is more profitable than quantity. Firms that focus on servicing fewer clients with a deeper, more personalised approach tend to outperform those that take a high-volume, low-touch approach. This underscores the importance of providing value-driven engagements rather than simply completing compliance tasks.

While benchmarking is a valuable tool, it is most effective when combined with other advisory approaches. When used alongside financial forecasting, risk assessment, and strategic planning, benchmarking can help firms provide their clients with actionable insights that drive better business decisions.

So, how can benchmarking be used to strengthen client relationships and ensure long-term engagement? Here are a few key ways:

1. Providing Data-Driven Insights

Numbers tell a story, and benchmarking provides a framework to analyse and interpret those numbers. Rather than relying on generic industry advice, firms can use benchmarking to compare a client’s performance with industry peers. This enables more targeted discussions about business efficiency, profitability, and growth potential. Presenting clients with this data reinforces the value of working with an accountant who brings industry-specific insights to the table.

2. Helping Clients Set and Achieve Meaningful Goals

Many businesses struggle with setting financial and operational goals. Benchmarking allows accountants to guide clients in defining realistic, competitive targets based on industry data. Whether the focus is on increasing gross profit margins, improving productivity, or optimising expenses, benchmarking provides context to help clients understand what is achievable.

These insights also help accountants work collaboratively with clients to build long-term strategic plans. Rather than just responding to past financial performance, benchmarking enables proactive decision-making that supports business sustainability and growth.

3. Identifying Opportunities and Risks

One of the biggest advantages of benchmarking is the ability to identify both opportunities and potential risks before they become major challenges. If a client’s profit margins are below industry averages, for example, a deeper discussion about cost structures, pricing strategies, or productivity improvements may be necessary.

Similarly, benchmarking can highlight areas where a client is performing well compared to peers, allowing firms to reinforce successful strategies and build on those strengths. This balanced approach—highlighting both areas for improvement and recognising successes—helps strengthen the advisory relationship and keeps clients engaged.

4. Encouraging Year-Round Engagement

One challenge many firms face is maintaining client engagement beyond tax time. By incorporating benchmarking into regular discussions, accountants can provide value throughout the year rather than only during compliance periods.

Mid-year and end-of-year performance reviews that include benchmarking data help clients track progress against goals and adjust strategies as needed. These check-ins also create opportunities to discuss additional services, from business planning to cash flow management, reinforcing the accountant’s role as a key business advisor.

The Crunch Report demonstrated that firms prioritising deeper client relationships and high-value engagements tend to achieve stronger financial outcomes. Instead of measuring success by the sheer number of tax returns completed, firms should consider the lifetime value of a client—the revenue generated over time through repeat business, referrals, and expanded advisory services.

By using tools like benchmarking to support client conversations, accountants can create a structured, data-informed approach that helps businesses succeed. However, it’s important to remember that benchmarking is just one component of a well-rounded advisory service. It works best when integrated with a firm’s broader strategic guidance, ensuring clients receive a complete, tailored approach to business growth and sustainability.

Practical Steps to Implement Benchmarking in Your Firm

To incorporate benchmarking into your firm’s advisory services, consider the following practical steps:

1. Educate Clients on the Value of Benchmarking – Many business owners may not be aware of how industry comparisons can help them make better decisions. Introducing benchmarking as part of your service offering helps set expectations and positions your firm as a proactive advisor.
2. Prepare Clients for Benchmarking – Encourage clients to track key performance metrics leading up to their benchmarking assessment. This helps them get the most out of the process and ensures they can act on the findings efficiently, using the insights to drive informed decision-making and business improvements.
3. Leverage Benchmarking Insights for Advisory Services – Use the benchmarking results to highlight opportunities for process improvements, cost optimisation, and revenue growth. Rather than focusing solely on historical performance, position benchmarking as a tool for future planning.
4. Support Clients in Implementing Recommendations – Many firms receive benchmarking data but struggle to take action. By providing structured follow-up services, such as targeted advisory sessions and strategic planning meetings, you can help clients turn insights into tangible business improvements.

Client retention isn’t just about delivering excellent service at tax time—it’s about providing meaningful, ongoing value throughout the year. Firms that focus on quality over quantity by building deeper client relationships and offering strategic insights position themselves as trusted advisors rather than transactional service providers.

Benchmarking is a valuable tool that helps firms guide their clients through informed decision-making and long-term business success. However, it should be used as part of a broader advisory approach, ensuring clients benefit from personalised, comprehensive strategies tailored to their unique business needs.

By taking a proactive, insight-driven approach, accounting firms can enhance client relationships, create new opportunities for engagement, and strengthen their business for the future.