Australian accountants receive the majority of new business through referrals. A survey conducted by Biznik showed that 80.9% of those surveyed get new clients through referrals alone. It’s no secret that word-of-mouth referrals are the backbone of the industry. Clients are able to connect with you based upon trusted sources, able to walk in with confidence about your abilities, and are able to garner partnerships that develop trust faster than if they were to find you through Google.

Jump to:

1. Map out your leads and referral history
2. Network to build genuine connections
3. Become the trusted source for your clients
4. Nurture your sphere with consistency

The key to a referral sphere is that for it to be beneficial, it will need to work both ways. Creating a community of professionals that you can refer to and in turn, will refer clients to you, is an invaluable resource and one that takes time to craft. The accountants who choose to take the time to build a referral sphere don’t just grow their capacity alone. They become indispensable to the businesses and community that they work with. If you’re wondering how to begin or how to grow your sphere to benefit your accounting firm, we’re here to help.

Map out your leads and referral history

The most integral part of building your referral sphere is understanding how your clients came to work with you in the first place. Complete an audit of the last three years documenting the clients you have onboarded, the level of services they require, and how they came to work with your firm. Most firms will find that their clients have come directly from word-of-mouth sources, so take note of who spread the word about your offerings.

Map out the businesses that your clients are most often in need of. Perhaps you have clients who are consistently asking for a solicitor to help with audit litigation, setting up family trusts, or drafting deeds for company partnerships. Other clients might need the name of mortgage or insurance brokers to maximise their borrowing power, or assess business risk. Make a note of who you’ve referred your clients to and if those referrals have come back to you.

Network to build genuine connections

Throughout Australia, there are networking events happening each year designed to help expand your sphere and get you connected with the right people to build your referrals. In August, The Royal Automobile Club of Australia will play host to the Accounting and Financial Services Breakfast Networking at the RACA. Events such as these are designed to link up accountants with financial professionals, wealth management experts, as well as those working within the broader financial services industry. This is just one example of the multitude of events designed to help build your sphere and foster genuine connections that improve how a firm can harness new leads.

Large events aren’t the only way to network, especially for those located outside city centres. Getting involved in your local community is a great way to expand your reach. Organise local events with professionals in your area, or check out your town’s Chamber of Commerce. The digital world offers yet another chance to connect virtually. There are virtual networking opportunities available through online conferences and events, while many accountants choose sites like LinkedIn to make meaningful connections. 

Become the trusted source for your clients

One of the main tenants when implementing business advisory services in your firm’s offerings is becoming a trusted source for information and advice for your clients. Your clients will often come to you wanting to know the best person for the job, even if that may not be you in each instance. Some ways you can apply this are:

• Knowing when your services aren’t able to fit their needs, but being able to show them the right avenue to walk down. If they need complex financial advice, direct them to the best professional in your sphere. 
• A client might mention they’re buying some property and are seeking advice on how to handle the legalities. Connect them with a conveyancer who can take on the job
• A sole trader is looking to take on new staff after a period of growth. While you may be able to help them with the superannuation and tax side of the new team, connect them with an employment lawyer who can create the correct employment contracts
• A client is looking to sell their business so your best next step is to weigh up options on how to handle your compliance work. Partnering with a trusted outsourcing provider can help you gain the capacity to provide advice on the selling process or how to invest the sale. 
• A business might be lacking in insurance that will help them out of a bind if the unthinkable happens. An insurance broker in your sphere can jump in to help out, decreasing their financial risk and solidifying the trust between you and your client.

Nurture your sphere with consistency

Consistency is what keeps a referral sphere healthy, instead of using it transactionally. The goal is to build solid relationships with your connections based on harmonious trust and reciprocity. A referral partner can quickly become lost when you are only reaching out or your own interests. Here are some ways you can be consistent, instead of reactive:

• Organise a quarterly check-in with your top three referral partners to discuss what they need, how you can help, and what common themes are appearing amongst their client’s concerns
• Send useful information they can pass on to their clients. A new tax reform from the Government, an update from the Australian Tax Office (ATO) that could affect a financial planner, or a tax change that could impact property investors.
• Follow up on the referrals you’ve made to see how they have landed. This works both ways. Check in with your clients and with those you’ve referred them to, to see if the connection was a good fit
• Introduce referral partners to one another. The best way to build your sphere is to get involved at the ground level, becoming a connector, and working to expand both your own and their industry reach

Building a referral sphere is not a quick win. Taking the time to invest in genuine relationships, the introductions you make without expectation, and the reputation you build as a trusted hub within your professional community is a necessary way to grow your firm’s reach. Show up consistently, refer generously, and look after the people in your network the same way you look after your clients.