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Not all businesses are struggling during the COVID-19 pandemic. Here’s an example: If your local investment advisor earns their revenue by charging a percentage on assets under management, the 15.76 percent 2020 return on the S&P 500 index should have swelled their bottom line. Some of your business-owning clients might be in the position to expand and will want to talk about it after completing their 2020 tax return. Whether you've thought of it yet or not, you're actually in a perfect position to help them do more than just find IRS tax breaks and get all the possible business tax deductions.

Considerations Before Anyone Makes a Move

Business owners can be impulsive. You’ve read stories about people winning a restaurant or a railroad in a card game. Real life requires more thoughtful planning.

What would complement their business? People buying one product often buy another. When you buy shrimp at the supermarket, cocktail sauce and lemons are nearby. Financial advisors, known for selling investment products, often expand into the insurance and lending spaces. Clients buying their product are usually buying the others elsewhere. Can your business owner expand their product line?

Can they handle additional business? Expansion doesn’t always result in an immediate increase in revenue. As a business owner, they need to leverage capital and labor. Do they have sufficient resources in each category? As an accounting professional you know businesses often fail when they overextend themselves and run out of money.