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Accountants should seize 'financial GP' opportunity

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31st Oct 2013
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Accountants should become a one-stop-shop for clients to access a range of accounting, legal and financial planning services, according to economist Justin Urquhart Stewart.

The marketing director of Seven Investment Management and popular investment commentator was speaking at the recent 2020 conference in Birmingham about opportunities despite the current ‘austerity’ climate.

Urquhart Stewart described a gap in the market for accountants to provide clients with a one-off port of call for their financial planning and legal needs, in addition to the ones they already provide.

This means accountants could charge for referrals to legal and IFA contacts they have partnered up with, and gear it toward providing not just the client, but their entire family with the service.

“Accountants find themselves in a unique position,” he said, “They already have the financial skillset to help both individuals and SMEs.”

“Both of these groups need to co-ordinate their financial, legal and investment affairs, and accountants are best suited to do this. The Lego bricks are already there, but now with software developments and the cloud, it’s even easier,” he added.

Businesses now need financial planning and legal work as well as accounting, and individuals will need the same; for example in drawing up a will.

According to Urquhart Stewart, this is something larger firms are already doing and advises regional accountants to find like-minded professionals - lawyers, financial advisers - and partner up with them.

He suggested that accountants could charge a monthly fee for the “GP-like, financial family doctor service, and could include value-added services such as a pension/will review annually.

“Multiple things happen in peoples’ lives that require this range of services. In a family of five to 10 people - including cousins, step brothers and sisters, etc, it’s a constant process,” Urquhart Stewart argued.

“Make yourself a financial GP - once you’re started, carry on across the family and you’ll never have to sell your services again.”

As well as speaking about the economic situation of various countries around the world, including China, Ireland and the UK, he added that technology was drastically changing the opportunities available to accountants.

“Technology allows accountants to do more than ever before. It radically changes the way they work and can help them help clients to be more financially aware. It can also help accountants communicate with clients more, which is always a good thing,” he added.

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Replies (13)

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By johnjenkins
31st Oct 2013 12:34

I always thought

that being an Accountant was being a finacial GP or have I missed something.

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By ireallyshouldknowthisbut
31st Oct 2013 14:08

.

Well quite John what a complete load of twaddle.

Did he pay accounting web to post that?

 

 

 

 

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By johnjenkins
31st Oct 2013 14:40

I just love this bit

"Technology allows accountants to do more than ever before. It radically changes the way they work and can help them help clients to be more financially aware. It can also help accountants communicate with clients more, which is always a good thing" 

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By ireallyshouldknowthisbut
31st Oct 2013 15:02

.

I was enjoying how I could use word of mouth to promote my business, to (wait for it) work for my clients families.  

Groundbreaking stuff. 

That and monthly fees. Inspirational. 

This guy should don some red braces and get into marketing....

Next we will be told we can refer work to IFA's. O he does. Being a firm of IFA's.

 

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By johnjenkins
01st Nov 2013 10:09

I think they would have been

better off getting Jasper Carrot as the speaker at the 2020. I'm sure I saw him wearing red braces in one of his shows.

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Teignmouth
By Paul Scholes
01st Nov 2013 10:58

He actually has a point but

I have a lot of time for Mr U S, if nothing else, he's entertaining to listen to, unlike many in the business.

The trouble is that this stuff has been said for the last 30 years so why is it still news?  Because many accountants are accountants and go into accountancy to do accountancy (it's on the can).

What's missing is (dreadful word) upskilling or, more like, "get out your bloody box" but then there's still a reasonable market for accountancy so why should I?

Similarly, with "added-value" services, clearly, whether some of us find it boring and have to drink lots of black coffee, accountancy is still of value, I don't do it for free, but added-value, indicates the opposite.

More though boredom with accountancy, having run my own business and dealing with hundreds of clients, I do now just provide a service to clients tuned to what they need, so, more though luck than judgment, I follow Mr U S's advice but it won't suit everyone, no matter how many times gurus spout it. 

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By johnjenkins
01st Nov 2013 11:52

If you became

bored with Accountancy, Paul, then perhaps you're not in the right job.

I have been in Accountancy for 48 years and have been angry, frustrated, over the moon etc.etc. but never ever bored. In fact I would go as far as to say (apart from Clarksons job) it's the best job in the world. I wouldn't mind being head of HMRC though. Now that would be exciting.

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Teignmouth
By Paul Scholes
01st Nov 2013 17:13

You're absolutely right John

With hindsight, I'd never have got into Accountancy, eg form filling & number crunching, this is why, as often as I can, I try and do other stuff for clients and myself.

Boredom after decades of numbers and paperwork would not strike many (normal) people as surprising (my wife for example still wonders how she has ever ended up married to an accountant) but it has it's plus side in that, as it's still necessary with most clients, and is the hook that can bring new ones to my door, I can do it remarkably quickly & efficiently and also teach clients to do much of it, leaving me more time to do other things for them, myself, my wife & dog.  

It's also meant my practice is nearly a third of what it was 5 years ago in client numbers, and I'm still paying the mortgage.

It won't be too long now until the accountancy stuff becomes redundant, we won't be needed to sit between clients & their books or their books & the government, my only regret is that I'll have retired by then and so won't have the ability to enjoy it.

 

 

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By plummy1
02nd Nov 2013 10:00

My Opinion

The comments on this post are mostly negative which probably means those who have posted are well versed in what is being talked about. However as s supplier of services to accountants and their clients we do see accountants who are just not willing to refer their clients to third parties. If you are already taking the steps alluded to in this post good for you but from our experience not all accountants are as proactive.

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By johnjenkins
03rd Nov 2013 11:18

@Plummy1

It really depends on what you mean by Accountant. The reason Why some Accountants don't refer is perhaps they "know" thier client. So we have this clash with marketing who think they know they can save a client money without actually knowing the client. How many phone calls do we get "I can save you money". Look at the problems banks got themselves into over mis selling etc.

Does an Accountant have to be proactive in your sense of the word?

Factfinds do not mean you know a client. Looking through their paperwork, finding out how and why they do the things they do and finding what makes them tick that is what being an Accountant is all about.

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By peterdell
04th Nov 2013 01:15

What a waste of time reading this article and suggesting that accountants that don't go for this stuff are not proactive.

Of course the word pro-actice could be replaced by "ripping off your client", and the reason some of us don't go in for "proactive advice" is because we want to be trusted. Now there is a new concept in financial services.

As already stated charging a fee for doing absolutely nothing, now there is a model which hasn't been tried by banks, insurance companies, pension companies, lettings agents, MP's etc the list could go on all night.

Ask yourself this question. 90% of my clients when asked, want and have the means to make a provision for pension contributions, only  about 15% do so. Why? because the other 75% think pensions are a big rip off and when everyone has taken their cut there is very little left. Speak to anyone from equitable life or has seen a small pension pot whittled down to nothing by charges. 

Keep your financial GP stuff and I will keep my clients.

 

 

 

 

 

 

 

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Teignmouth
By Paul Scholes
04th Nov 2013 12:43

I'm pleased clients have stopped asking me

My comments above were concerned with the general mantra that Accountants can (and should) be more than accountants rather than the suggestion (again started in the 80s & 90s) that we, IFAs & lawyers could do each other a favour.

Back in last century it was put in terms of forming multi-disciplinary ventures or even buildings, thank god the regulatory bodies couldn't find a path through all the vested interests and it never took off.

I have fallen out with, or avoided being conned by, more IFAs, Solicitors and bank managers than I care to remember and, whilst I'm happy to counsel/warn clients over what to look out for, I just don't need the grief and, fortunately, they are all grown up enough to find their own contacts and make their own mistakes.

Following on from Peter's comments above, I have my own IFA who I've referred two or three clients to, but only because he's been good at sorting out the mess that others in his business have made. I'm stuck with my pension fund and have to make the most of it, other, younger clients can avoid the mistakes I made by being warned that the city offices, benefits, suits & bonuses gulped down by the FS industry, don't come out of thin air.

 

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By peterdell
04th Nov 2013 13:23

Hi Paul,

Don't get me wrong I am not against working with other professionals particularly where you trust the recommendation and understand how they can help the businesses you advise. An IFA/Insurance broker/lawyer can be helpful particularly when tax planning, advising on a big project, dealing with IHT advise. etc, etc.

My issue is the something for nothing culture which is prevalent throughout financial services and other industries and the article seems to advocate above. This is detrimental to the interests of your client and erodes trust. Thankfully most accountants don't go in for this commission based culture largely because under the rules of ACA/ACCA you would have to disclose such commissions to the client.

I also think that there is a culture in accountancy which means the large majority of the industry doesn't just look at the amount of money going into their pockets and its interesting that possibly the worst area of abuse, hourly rates, has largely disappeared without the need for government intervention.

 

 

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