Outstanding communication with the client

A paramount element in the accounting profession is clear communication and an understanding between the practitioner and the client.

From the very start of the relationship, the accountant must inform the client of the purpose and scope of the proposed engagement. Traditionally, this has been done through an engagement letter. However, there are other valid methods, such as through emails or a brochure. By doing this, the practitioner is protecting herself or himself by managing the customer’s expectations, as well as limiting the likelihood of client disputes in the future.

It also needs to be clear from the commencement of the relationship that despite the accountant’s desire to improve the financial position of their client, there are ethical rules that demand transparency and objectivity when reporting the financial state of affairs.

Accountants can deliver on service by clearly explaining these legal obligations, ethical practices and client responsibilities in plain English. Compliance will be greater among those who understand the clear message being communicated. Regular, professional and respectful communication will aid in client retention.

One-stop shopping

As accountants know more than anyone the financial position of their clients, it places them in a unique position to not only advise clients in terms of specific jobs (such as preparing a tax return or the annual accounts), but also to provide input into the overall business operation of clients. The accountant is the person who has a clear ability to understand their client’s business and to stand in his/her client’s shoes.

In short, an accountant can assist a client in all areas of the business, as long as he or she possesses the necessary business acumen. This could be advantageous for professionals in possession of other strong background skills like economics, financial planning, wealth and asset management or any other business/finance-related background.

Find your niche and get noticed

The best way to generate new business is still through networking and word-of-mouth (the latter is arguably the best marketing campaign). Finding your own niche can be achieved by exploiting your own background, previous experience and roots.

For instance, a person who grew up on a farm may have contacts in that area as well as a deep understanding of agricultural business and its requirements (farmers have a number of tax concessions they can access, as well as a variety of income or loss reporting options, spread over a number of years).

A person born or who grew up overseas may know others from that same background who could become clients. Having a close relationship with specific communities can help establish a huge source of potential clients for a number of reasons:

• The ability to communicate complex professional details in the client’s own language; and

• An awareness of cultural sensitivities and a natural trust may exist due to sharing a common background with the client.

The internet is clearly the cheapest and quickest way to access a niche market, although it should be remembered that there will be pockets of the population who do not respond to online marketing for the simple reason that it doesn’t reach them. For example, older people may not have the IT acumen of a younger crowd (although this is changing). Generally though, online portals are an excellent starting point to reach out to those in need of accounting services (i.e. business start-ups, young entrepreneurs, first time investors and people requiring taxation services).

Investing in a social media strategy and increasing online presence can be done via apps which allow the same posts to be automatically updated on a variety of social media accounts (i.e. Hootsuite, ITTT, Facebook, Instagram, Twitter etc) or by increasing websites by improving SEO, driving traffic from social media accounts, keyword searches, hashtagging, blog posts etc.

Keep abreast of new technologies and take advantage of them

Adapting to the changing technological environment has become vital for success. Just think of how efficient an accounting business would be if it implemented a cloud-based software system and went paperless. Cloud computing enables effective and flexible management of financial records as the access to the data and software happens anywhere, any time through any computing device. This is possible without being dependent on a hard drive, network or at the risk of moving the data with a USB drive. Along with the cloud system, the accountant should consider putting in place a security system to combat any cyber attack. Why not even check the possibility of taking out cyber insurance?

Obviously, it is not only cloud computing. An accountant can leverage their practice by offering other digital and mobile technology services to avoid the possible time cost, to both the accountant and client, of meeting in person. Examples are apps that allow digital signing of contracts, online client portals to tele-submit compliance documents, live data streaming and access to records.

Luis Vazquez, senior editor, Thomson Reuters