At a glance:
- Accounting firms are shifting from compliance work to offering more advisory services.
- AI helps firms analyse data to find new advisory opportunities for clients.
- Human judgement and clear client communication remain essential for building trust and value.
Accounting firms have long pitched themselves as delivering compliance – accurate reporting, timely filings, and managing regulatory risk.
But that foundation is giving way to an advisory model that aims to help clients make better decisions.
This shift is captured in a new report by Wolters Kluwer, which finds that 67% of accounting firms in Europe now offer advisory as a core service, up from 53% in 2024.
“Advisory-first isn’t just a service model, it’s a mindset shift that redefines how firms create value,” says Joel Morris, vice-president and segment leader at Wolters Kluwer Tax and Accounting Research and Advisory.
“As professionals harness AI and data to anticipate client needs, and scale insight, they’re evolving from compliance-focused roles to strategic, consultative partners.”
Practical challenges in expanding advisory
While advisory services are becoming more common, the report shows they are still relatively constrained in scope.
Business and individual tax planning and wealth management continue to be the most established advisory services across Europe.
These offerings are familiar to clients and align naturally with compliance work. And they can often be delivered by expanding existing processes and expertise rather than requiring entirely new capabilities.
Over the next 12 months, many firms plan to increase advisory services tied to anti-money laundering (AML) compliance (35%), environmental and social governance (ESG) services (33%), and cryptocurrency (33%).
While this represents a shift for accountants, challenges remain in scaling these forms of advisory work – particularly for small and medium firms.
Key barriers named by firms include a lack of skilled personnel, system integration complexity, and the cost and effort of processing data, each cited by more than a quarter of firms globally.
Overcoming these obstacles will require targeted investments, says Morris.
“Firms that invest in technology and training foster growth by empowering their teams to think critically, act proactively, and deliver strategic advice to clients.”
“AI-enabled insights can set advisers apart… moving beyond just tallying up activity from the past.”
Joel Morris
The role of AI in the shift to advisory
Generative AI has emerged as one of the most powerful drivers of accountants’ shift towards advisory services.
Wolters Kluwer’s research shows AI tools can summarise regulations, identify anomalies, and analyse large datasets – and these capabilities are already helping firms to lift the quality of their advice.
Wolters Kluwer reports that 87% of firms in Europe are already using client data to identify advisory opportunities, and that 41% of high-growth firms report better-than-expected results from AI in improving client guidance.
“AI-enabled insights can set advisers apart, helping them demonstrate strategic impact by moving beyond just tallying up activity from the past,” says Morris.
“In the advisory-driven practice of the future, in addition to the summary of the past, accountants can proactively show clients what is possible in the future, and how they as accountants can help their clients reach their goals.”
However, while AI can deliver efficiency and depth of analysis, trust, context, and judgement remain firmly human responsibilities, he adds.
“The most successful firms invest in a combination of people, processes, and technology to create a continuous learning environment to ensure advisory growth is both valuable to clients, and sustainable and responsible for the firm.”
Firms also need to be deliberate in how they communicate the value of advisory and build client confidence in these services over time, he says. Helping clients understand what advisory looks like in practice is often just as important as developing the capability itself.
“By sharing success stories, offering tailored guidance, and positioning themselves as partners in growth, accountants can reshape how clients view their value and expertise.”
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