By Monique Sharland<\/p>\n
Have you ever randomly Googled something like \u201cwhat clients want from their accountant\u201d or \u201creasons to replace your accountant\u201d? And then, have you gone on to read the comments below many of these business blogs?<\/p>\n
Interestingly, smaller business owners all seem to have common views of what they really think about accountants and what they want from their accountant, while accountants go on to try defend themselves. These are not only South African outlooks, but trends in the greater economically active world. These blogs are more about what accountants don\u2019t do that really frustrates business owners, than what they do.<\/p>\n
As Jim Collins says in his book, Good to Great \u2013 \u201cgood is the enemy of great\u201d. Business owners alone can provide insight into what is needed from their accountants, so being armed with this knowledge can differentiate you from the multitude of other bookkeepers and accountants who choose to remain in the status quo.<\/p>\n
So just what are the top most common peeves that smaller business owners have with their accountants and how can we rise above them to grow from good to great?<\/p>\n
Following research conducted in 2014 by The Sleeter Group among decision makers at small and medium sized businesses across the United States and similar research run by Australian company Panalitix and UK company AAT, it comes as no great surprise that \u201cexpertise\u201d, \u201cresponsiveness\u201d, \u201cproactive strategic advice\u201d and \u201creputation\u201d – in that order – were the top-rated qualities business placed when selecting or changing their accountant. Remarkably, \u201clow fees\u201d rated the least important.<\/p>\n
Great Accountants Understand Business <\/strong><\/p>\n Entrepreneurs want accountants to understand business. Here are some eye-opening blog comments from business owners to make any good accountant sit up and take note:<\/p>\n \u201cAccountants only know numbers and equations and that\u2019s about it. They lack insight and vision and sometimes lack a pulse. One thing is for sure are those accountants probably need to get out there and understand their client\u2019s business a bit more so they can give some solid advice\u201d.<\/p>\n \u201cIf I am going to share the intricacies of business and finance with a relative stranger then I want him or her to really understand (or at least be able to empathise with) just how brilliantly skilful I must have been to grow a business despite all the odds. Accountants need to understand the whole picture\u201d.<\/p>\n \u201cBusiness is not simply about money \u2013 accountants often seem to think that it is! Business is about people; employing and motivating people, getting people to buy from you and finding people to buy from. Business is about sales and marketing and about delivering your service or product\u201d.<\/p>\n \u201cDo accountants know how to grow their own business? If they don\u2019t, then what credibility do they have in helping you grow yours? Great accountants can prove they know how to do it themselves. Business is about growth. It\u2019s about change. It\u2019s about being brave. Sometimes its flipping stuff upside down. Does your Accountant demonstrate they can do it themselves? It\u2019s a fair question and a damn good indicator of whether they can help you\u201d.<\/p>\n \u201cWhat\u2019s a business model? If the accountant doesn\u2019t know the answer, then grab your coat and run. A true pro knows that getting your business model right will often be your competitive edge. If you\u2019re starting your business from scratch then nailing this early will make a massive difference to your outcomes. Tweaking the current business model may also be needed from time to time\u201d.<\/p>\n Entrepreneurs want accountants to understand their business<\/strong><\/p>\n \u201cI have specific problems \u2013 problems that are specific to my industry, to my market and to the way that I run my business. The accountant should know this and be able to assist with specific industry-related support. At a minimum, a knowledge of benchmark ratios would help. But really, I want them to add value \u2013 tell me what the accounts mean and tell me what options I have. I want a partner in my business\u201d.<\/p>\n Businesses want more value-added service from their accountants<\/strong><\/p>\n \u201cData capturing and bookkeeping doesn\u2019t sound complicated, and it has a low \u201cperceived value\u201d. It\u2019s not enough these days for an accountant to offer just accounting services\u201d. You are not simply just the person who does the payroll, VAT and returns; you are also advisor, tutor and mentor.<\/p>\n Small business owners don\u2019t have the time to shop around for different areas of business advice; they often ask the accountant for help in areas such as employment law and marketing. You don\u2019t need to be an expert on everything, but referring client enquiries to recognised alliance partners and sources can help them enormously.<\/p>\n Your clients don\u2019t care about the accounting. What your clients care about is how they\u2019re doing, and if they\u2019re on the right path. That\u2019s what clients want to know and will pay for. They just don\u2019t know how to ask. They don\u2019t necessarily know what they need to know, and telling them about a few numbers doesn\u2019t cut it.<\/p>\n Are you helping them understand that, or are you just the person who works with the numbers to make sure they\u2019re accurate? When asked what types of services SME\u2019s want their accountant to provide them in addition to tax preparation and bookkeeping, more than 57 percent stated they would like more business planning and strategic advice, while about 30 percent want more tax planning, 20 percent want help with cash management and forecasting, and 21.5 percent want better business analytics.<\/p>\n Great Accountants are Proactive in Helping Business<\/strong><\/p>\n \u201cIt\u2019s crazy for accountants to not provide insights on the financial trends of a business. Clients believe we should provide perspective, but as a profession we stay stuck in preparing information and verifying accuracy\u201d – anonymous accountant. Accountants that don\u2019t give proactive advice, but only reactive advice are the top reason why businesses change their accountant according to research among decision makers at small and medium sized businesses conducted across the United States, UK and Australia.<\/p>\n The fact that proactive strategic advice rated so high shows SME\u2019s want an accountant who is a partner in their success and often thinking about their business. This reinforces how SMEs view the relationship with their accountant. They see the accountant as a resource with the knowledge and expertise to help make their business successful, but if the accountant isn\u2019t ahead of any potential issues or recommending ways to streamline operations, then the SME may move on to an accountant who will.<\/p>\n Proactive strategic advice can be business, financial or tax planning, but it can also take the form of technology planning to improve the efficiency of the business\u2019s operations.<\/p>\n It\u2019s a good reason for accountants to make sure they\u2019re current on the latest technology solutions for businesses and inform their clients on the benefits.<\/p>\n Great Accountants Have Financial Mastery, an Excellent Handle on Tax and Other Laws Affecting Business<\/strong><\/p>\n The number one top-rated quality business considers when changing their accountant is expertise, an accountant with a high level of knowledge, according to research conducted.<\/p>\n Here are some more eye-opening blog comments from SME owners:<\/p>\n \u201cThey need to be able to grab a balance sheet or a P&L and \u201cknow it\u201d like a seasoned musician can read music. The great ones can take a look at the numbers and within seconds put their finger on the core health of the business. The most critical part of financial mastery is cash.\u201d<\/p>\n \u201cAs for tax, after paying private accountants through the nose for poor results (i.e., failure to minimise and take advantage of entirely legal deductions), I took my personal tax to a well-known franchise who, at minimal cost, have been simply brilliant in getting me on track and keeping me there\u201d.<\/p>\n Great Accountants are Excellent Communicators and Educators <\/strong><\/p>\n The second top reason why businesses change accountants according to the research conducted was poor responsiveness. Responsiveness is also the second top most important factor in a business\u2019s decision to select an accountant. \u201cWhy shouldn’t your accountant explain this stuff to you? A good accountant should not only be able to explain it, but to clarify how they have come up with their reports – what information used, what needed. And why shouldn’t they be proactive in suggesting improvements and alerting you to trends\u201d.<\/p>\n \u201cIn my experience, private accountants are quite loathe to actually discuss reports with clients, it’s just sign here. I learnt all my financial report knowledge working closely in house with financial controllers, as they had a better understanding of the business working in it and were more willing to share and explain their knowledge\u201d.<\/p>\n \u201cYou have finished out the year and feel pretty good about what you accomplished. Your accountant is busy and doesn\u2019t tell you the taxation consequences of your performance until a few days or a week before your tax is due. You don\u2019t have the cash so you spend the next week trying to solve the problem\u201d.<\/p>\n Great accountants are engaged with client\u2019s business and if the accountant isn\u2019t preparing monthly management accounts, they\u2019ll ask questions about client\u2019s projected profit for the year well in advance and help clients define their future tax liability. Great Accountants are Quick to Respond<\/strong><\/p>\n Prompt replies is another area in which accountants can learn from their clients. Small businesses are usually quite swift and agile when dealing with enquiries. A common complaint from some business owners is that their accountant can take quite a long time when replying to emails and returning phone calls. No matter how small they are, clients want to feel like they are valued, and timely communication is important to them.<\/p>\n","protected":false},"excerpt":{"rendered":" By Monique Sharland Have you ever randomly Googled something like \u201cwhat clients want from their accountant\u201d or \u201creasons to replace your accountant\u201d? And then, have you gone on to read the comments below many of these business blogs? Interestingly, smaller business owners all seem to have common views of what they really think about accountants…<\/p>\n","protected":false},"author":2,"featured_media":3726,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","entry","has-media"],"yoast_head":"\n
\nAccounting professionals are having a hard time of it right now, with clients expecting more insight and assistance from their accountant in helping to build value and profitability in their businesses, yet accounting professionals continue to be mired in the details of the numbers. It\u2019s like the old saying about not being able to see the wood from the trees.<\/p>\n
\nForget the old adage to only give advice when it\u2019s asked for \u2013 give it anyway! Your client won\u2019t be offended, the vast majority will be pleased that you are taking an active interest in their business.<\/p>\n
\nBut perhaps where accountants scored the least was communication and educating their clients.<\/p>\n
\n\u201cIt just shows that the best accountants are the ones that are able to communicate with their client\u201d.<\/p>\n