Practical examples of how UK practitioners are serving their clients more proactively and, as a result, earning bigger profits.
Practice management: Why honesty really is the best policy
The bravest thing an accountant can do is be honest with their clients about how proactive they are – and being honest can pay well!
I recently encountered someone who ran a small practice in Leeds who sent an email to every single client apologising for not being proactive in the past and promising that things would now change. By way of proof, he offered to carry out a diagnostic review to identify new ways to put extra money in their bank account through better tax planning, etc. It was a very brave move and one that netted him £14,000 in extra fees for SIPP planning from two clients, an additional £8,000 pa extra for management accounting services from another two clients, and positive responses from clients praising his refreshing honesty and accepting his offer.
While I have never advised any practitioner to write to their clients in this way (and before I heard this story would not have been brave enough to do it personally), I now think it’s a powerful idea and there are five main reasons why other firms should consider doing this.
Reason 1: Research
More than anything else, research shows that clients want their accountants to be proactive. However, most accountants merely pretend that they are proactive. They plaster the word across their promotional material but are too busy to genuinely make it a central part of the habits, culture and systems of the firm. So at the moment most accountants are not giving clients what they really want, but that is now changing rapidly as more practitioners recognise the need to make it a priority.
Reason 2: Honesty
Accountants who persist in falsely claiming to be proactive will increasingly be viewed by their clients as lacking two of the essential pre-requisites for being a trusted adviser - integrity and honesty. However, those who come clean, tell the truth and then change things for the better will be trusted and respected.
Reason 3: Differentiation
Given that genuine proactiveness is what clients really want, those who rise to the challenge will make themselves so much more attractive to clients and prospects. That in turn will make it much easier for them to win new clients and earn more from existing clients.
Reason 4: Momentum
Many practitioners already know what they need to do to make things better for them and their clients. For them the problem is not the knowing, but the doing. The two main obstacles that prevent them doing what they know needs to be done are: They don’t start, and/or they don’t persevere. However, the approach taken by the practitioner above overcomes both of these obstacles. It gives you quick and simple way to start and ensures that once you have started you carry on, since it is very difficult to go back after writing to clients about it.
Reason 5: Profitability
The practitioner mentioned above saw a substantial improvement in profits and did not lose a single client. Instead, many of them are now willingly paying higher prices and buying additional services.
If sending a message like the one described above is too much for you, why not test the principle by starting small? For example, you could start by approaching only a handful of clients, and instead of being honest with them in writing, convey the same message verbally. That way you are not holding yourself a hostage to fortune, you can fine tune your message, and you can react intelligently and in real time to whatever they say so as to nip any problems in the bud and build on the really positive aspects. To me that kind of test makes a great deal of sense.
However, there is a very big warning to heed with this technique – before you start having these kinds of conversations with clients you must make absolutely sure that really can and will be more proactive in the future.
Honesty about me and what I do
Anonymous / Lisa, I think you must be confusing me with someone else.
So to clarify matters, here are the facts about me and what I do:
- I am a 48 year old FCA and I started AVN in September 1998, so we are now eleven and a half years old
- We are owned and run by UK accountants for UK accountants
- We employ over 25 people at our head office, and also have a team of over 20 practice coaches across the UK
- We currently work closely with c 250 firms of accountants
- We do not offer easy money or quick fixes
- Instead, our mission is to help UK accounting firms to become the most successful and enjoyable to run in the world
- And our message to the accounting profession is this… profits are a consequence… so when you use your skills with numbers to serve your clients more professionally and proactively than ever before… you will be rewarded with higher profits than ever before
- To help accountants to serve their clients better we have created a comprehensive suite of software, training, professional connections, tools and resources
- And we also provide further software, training, tools and resources to help accountants run their practices more efficiently
- Over the last 11 years some firms have failed with our stuff, and more firms have enjoyed real success
- Some of the failures were probably our fault – and many of them were because the firms in question chose other priorities, met internal resistance and inertia, or simply failed to implement
- While the best successes were achieved when four factors came together: (a) the practice really wanted to get better, (b) they got their team on board, (c) they selected the right AVN tools for the job, and (d) they persevered
There are lots of examples on accounting web of practices that have made a success with the AVN stuff, including:
- Accountingweb’s own practice coach, Finola McManus, who says AVN was “pivotal to us moving up a level and at some speed” for her Accountancy Age award winning practice http://www.accountingweb.co.uk/blogs/finola/practice-perfect-finola/my-journey-part-two
- Ian Rodgers, who earned an extra £6,000 in the first month from of using our Tax Credit systems http://www.accountingweb.co.uk/topic/tax/proactive-accountants-guide-tax-credits
- Nino Pucacao who earned an extra £28,250 from the first 4 clients he talked to using our incorporation systems http://www.accountingweb.co.uk/topic/practice/tips-trade-how-we-earned-extra-28250-fees
None of these people would remotely recognise the claim that multi level marketing played any part in how we have helped them. They would all simply say we helped them be more professional (ie serve their clients better) and be more commercial (ie do it in a way that rewards them at a level that is commensurate with their status as leading professionals).
Nor will you find any traces of multi level marketing in any of the following research papers and resources that I will gladly share with any fellow professional who wants to judge for themselves (simply contact me on steve@avn.co.uk and I will send them to you):
- The proactive accountant – A white paper
- Research paper showing how one 11 year old, 6-person firm has grown by over 50% in the last two years – and is on track to become a £1m practice
- Case studies showing the wide variety of ways accounting firms have turned the recession to their advantage
- Simple ready to use tools and guidance you can use to generate more leads, win more clients, and earn higher fees
Or, of course, you can simply read any of my many articles and blogs on accountingweb (for which I am honoured to say the accountingweb editors nominated me for, and readers voted me the winner in, three categories in the site’s “Best of 2009” awards, including “Best contributor”)
Either way, I hope you can clearly see that, as an FCA and AVN’s founder, I care deeply about the future of this great profession of ours
Of course, nothing in life is right for everybody - after all, some accountants love Sage, others hate it – including my ideas for helping the profession.
Steve Pipe FCA
PS A bit more about me personally outside AVN... I am 48, and after leaving university with a BA and MSc in economics, I trained with Thomson Mclintock In Leeds, worked post qualification as a manager at KPMG in St Albans and Head of Finance at the £100m Consumer Imaging Division of Kodak in Hemel Hempstead. I then set up my own practice, and as a result was named Hertfordshire Business Personality of The Year by Business Link, and UK Entrepreneur of the year by Accountancy Age.
Meanwhile my book "101 ways to make more profits" was being translated into 14 languages around the world, and I also wrote training videos on over 150 technical subjects for the Accountants Education Channel and the 8-part accounts made easy style BBC1 television series "Easy Money". While at the ICAEW I was the editorial adviser to the highly influential 2005 Report, Chaired the subsequent 2005 Challenge Group, and wrote the Audit Faculty's "The value of an audit" report.
So, as I hope you can see, my commitment to this great profession has been lifelong.
Big cheese
Wow, big cheese!
So why is my email and post box plagued with other AVN members telling me how great AVN is and how I must, must, must join or be left behind....
Lisa
Agree with Lisa
I agree with Lisa comments.
Steve, I find your contributions on AW just another way for you to make more money under the guise of helping accountants.
To answer your question Lisa
The reason why senior accountants (all of whom are bound by strict codes of professional conduct to be honest) go around talking about AVN is that we have helped them to make a profound difference to the service they give to clients (ie to their professionalism) and to how well they are rewarded for doing so (ie their commercial success)
For the record, I do not believe we have sent a single mailshot about AVN to the accounting profession since October 2009, and in the 12 months before that our mailshots were infrequent due to the prohibitively high cost of postage these days. (So once again I can only assume there is some confusion between us with others who do take the approach you describe).
And of course, our emails are sent in full compliance with the Data Protection Act – so if you inadvertently receive them, but do not want to, can I please invite you to click the unsubscribe button to instantly stop them.
Alternatively, please identify yourself to me (in private on stevepipe@avn.co.uk if you wish) and I will personally ensure that, if you are on our database, we remove you immediately so you never receive anything from us by post or email.
STEVE
Why I really do it...
Can we please be clear on one thing, I NEVER sell anything on AW.
And neither do I get paid by anybody, including AVN, for writing stuff on AW (since I write everything in my own time because I choose to)
Instead I simply share things for free because I feel it is the right thing to do (and because it makes me happy and fulfilled to do so).
For example, I share proven insights, research findings and ideas in my articles for free. (And in 2009 these were voted by readers as the best articles of the year).
And I often also offer to share more detailed ready to use templates, guidance notes and replicatable examples for free with those who want even more practical help. (And for the record, not a single person who has ever accepted that offer has subsequently turned around and accused me of selling them anything, let alone acting dishonestly).
So why do I do it?
Because I believe in this profession, but am frightened for its future if it doesn’t up its game. Because I genuinely want to help. Because I want to make a difference. And because “as you sow, so shall you reap”.
And that’s why from 1 January I made a big personal change, greatly reducing my personal income by switching to a two day working week, so that I could spend much more time on pro bono research and sharing via AW and elsewhere.
Is it really such a bad thing to want to help?
Or should I give up now, and start being selfish?
The Truth about Steve Pipe
Over the last few weeks I have e-mailed Steve Pipe after reading either articles or comments he'd posted on AccountingWeb to take up his offer of free resources and case studies. In every instance he's e-mailed me through material that I've been able to put to use straight away in my practice.
Just this week he sent me an example press release responding to the Budget. So I produced a tailored version to send out commenting on the Finance Bill adnd its cost to the local economy. The same day I sent it our to the local papers and I got a call straight back from the local business editor who wanted to include my comments in next weeks news and business sections of the paper.
Following Steve's suggestion I've also sent copies of the press release to prospects and referral sources and am confident that it will generate results.
Steve gave me this help for free.
As a result of this and other material Steve has sent me I've accepted a free place on one of his upcoming seminars and taken out a free trial of AVN Tax membership. I hope it will prove as valuable to me as Steve's help to date.
Good to Great
I think Lisa's comment that they are doing 'quite well' and not 'amazingly well' suggest that Steve's help could actually be invaluable to her firm.
















Honesty
Yep, honesteys important.
For example, how about your admitting that your businesses is really a glorified Multi Levelled Marketing outfit, with little to do with accountancy, and more to do with cuttering up the post box of practitioners who don't give a hoot about your brand of sales as they are doing quite well already.
Lisa