Hi all. I'm just after a few pointers when going over accounts with clients.
When they sign paperwork I currently read over accounts and tax returns letters etc they are to sign and explain it. But I keep getting clients saying to me things like I'm lost and I'll leave it to you...
That's ok but I don't want in future clients saying they did not fully understand what they signed and consequences etc etc and was wondering what everyone else does that perhaps I'm not doing to make it clear to clients? Any pointers would be appreciated. Thanks
Replies (7)
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Don't just talk at them
Get them to engage with you, ie. discuss the profits and any variations with them, and discuss why it has been a better/worse/same profit as last year, ask if they hit snags or have tried something different, etc. Give them some tips and recommendations and discuss them.
Not only does it help them, but it shows them you are interested in their business. However, if they really don't wan't to discuss it and just want to know their tax liability then you just have to accept it. It makes the meetings shorter. :)
I remember once (some years ago) a new client walked in & said "I've been in business for 18 months now & I suppose I ought to do something about the taxman".
We discussed this & I asked for his business records. "Records? That's your job" he said.
Maybe not typical, but most clients want to know as much about accounts as I know about what's under the bonnet of my car!
RM
It's not rare that when we ask the client to confirm they agree to final figures, they respond along the lines of "I don't understand them, but I trust you, where do I sign"...which does concern us!
Normally they're half joking (on the first bit, not the second!), but we do insist on more than that, asking what they don't understand...at which point typically they suddenly understand everything and are happy to sign (they don't want a length explanation of debits and credits!)
With some clients....
Maybe they are the sort of clients where the accounts review ought to be restricted to pointing to the accountancy fee figure and observing how little it has increased from the previous year comparative.
Just as many will say they understand when they don't in order to save face.
I think the best you can do is make yourself available to answer any questions they may have and to remind them of the responsibilities that signing accounts and returns bring.
Don't think it is necessarily your fault if they don't understand.
Context
I find it varies between clients, but it is worth persisting. However, they are not going to be interested in the things you or I might be. If they are not interested, I start with the tax bill and that usually leads to some questions. Many clients will say they do not understand and I simply agree that most people don't. Using the car analogy, what the punter wants to know is: how much? is it safe/legal? what do you recommend? and what have you Mr Mechanic done to help me. If I think that way it frames the discussion to make the time spent feel worthwhile.