Rethinking the SME Relationship

Evolving from Service Provider to Strategic Partner 

As Active Directions often operates at the intersection of accounting, legal, investment and advisory firms (and their clients), we do see how successful firms engage mid-market clients. This article is part two of our series focused on small and medium-sized enterprises (SMEs) and family businesses. Showcasing how as different stakeholders (government, industry associations, corporates, business services) we need to do a better job of providing quality advice.

There is a shift in expectations. SMEs are no longer satisfied with compliance-only support. They want advisers who understand their broader business and personal goals. While specific survey data is limited, industry reports and anecdotal evidence consistently show that: 

• SMEs seek holistic advice that spans strategy, succession, and growth - not just tax or legal compliance. 
• Trust and proactive engagement are key differentiators in adviser selection. 

This shift presents a compelling opportunity for accounting and legal firms to evolve their role from service providers to strategic allies. 

Three Practices That Transform Relationships 

To move from a transactional engagement to a high-trust, strategic partnership, firms must embed these practices from the outset: 

1. Onboard with a Strategic Conversation: Begin the relationship with a broad discussion about the client’s personal and business ambitions, opportunities, and challenges. This sets the tone for a deeper engagement and uncovers areas where strategic support is needed. 
2. Leadership Sponsorship: Ensure that both the client’s CEO and the firm’s managing partner are aligned in their desire to build a valuable, long-term relationship. Their sponsorship signals commitment and elevates the importance of the engagement. 
3. Establish a Structured Strategic Review: Create a recurring meeting that reviews the client’s ambitions and progress. Use this forum to align on priorities, track execution, and adjust plans as needed. This structure reinforces accountability and keeps strategy front and centre. 

Questions Clients Should Ask Their Advisers 

• What experience do you have supporting businesses through growth, succession, or transformation? 
• How do you collaborate with other advisers (e.g., legal, financial, industry experts)? 
• What data or insights can you provide to help us make better decisions? 
• How do you ensure your advice aligns with our long-term goals? 

SMEs and Family business play a vital role in driving economic growth. They’re dynamic, ambitious, and often navigating complex challenges with limited resources. For advisers: whether in accounting, law, banking, or industry bodies, there’s a meaningful opportunity to support SMEs in a deeper, more strategic way.