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Why accountants are failing clients

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28th Sep 2015
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Too many businesses aren’t on top of their numbers and are adopting an ostrich mentality with their head in the sand about it, says Kelly Clifford.

They hope that by ignoring it, everything will be okay. The reality is that it won’t. And if they continue to act in this way, they risk losing their business.

One of the most frequent reasons or excuses I hear from small business owners is: “My accountant is taking care of the business numbers.” This often raises a counter question: “Is your accountant really ‘taking care of it’ or are you just abdicating your responsibilities so you have someone else to blame if it all goes terribly wrong?”

Many small business owners do not fully understand that accountants will almost certainly have a portfolio of clients and they are part of that portfolio – this means that accountants cannot and will not be as passionate about their business as they are about their own. They commonly fail to understand that while they can devote 100% of their time to their business, their accountant can only devote a fraction of their time to it, so both parties have different priorities, coming at it from different angles.

Accountants must proactively encourage their clients to take more of an interest in and be more responsible for the numbers side of their business. Don’t misunderstand this point, I am
 not saying for one minute that clients need necessarily to be producing the information 
themselves. The importance of the involvement of an accountant remains. There just needs to be a step change in client perception and many small business owners need a wake-up call about the reality of the situation. Small business owners must be made to see that the buck doesn’t stop with their accountant or anyone else, it stops with them.

If we are going to start having a positive impact in reversing the nasty business failure statistic in the UK, then it starts with each and every one of us practicing some tough love with clients in helping them to see that they must start taking control of the numbers side of their business if they ultimately want it to reach its fullest profit potential.

We are failing our small business clients if we don’t do this.

Kelly Clifford is a qualified accountant, author of Profit Rocket and founder of Profit in Focus

Replies (17)

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By justsotax
28th Sep 2015 15:16

you can take

a horse to water and all that....but the heading 'why accountants are failing clients' seems at best misplaced, at worst a misrepresentation of the contents which appears to outline the business owners own failings to appreciate and use the 'numbers' provided - assuming that the accountant will not only analyse these numbers but also then advise the business owner how they should run the business accordingly....

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By johnjenkins
28th Sep 2015 16:45

What a

sub standard headline (nothing offensive yet Francois).

I disagree entirely with the content. It is not our job (nor would our clients wat it to be) to force numbers onto our clients. They are available if wanted.

What has happened is that small business owners have been inundated with change that some do not know which way to turn. If it comes to earning money or spending time going through legislation then some will opt to pay their bills.

Kelly, I don't think you have a clue what being an Accountant is all about and you should stick to writing books that sound as bad as your headline (or was the headline a stroke of genius from aweb).

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By Vaughan Blake1
28th Sep 2015 16:59

Groundhog Day article!

This weeks journey to the land of added value and proactivity.

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By justsotax
28th Sep 2015 17:09

I was guessing it was

written by a 'business consultant', so really disappointed to see it was written by an 'accountant'...my only question would be have they ever worked in practice.

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Replying to PandoraSleeps:
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By Vaughan Blake1
30th Sep 2015 09:32

Accountants come in many flavours!

justsotax wrote:

written by a 'business consultant', so really disappointed to see it was written by an 'accountant'...my only question would be have they ever worked in practice.

Looking at Kelly's CV it appears that he was a large firm FD and left 'a six figure salary' to start his own consultancy  and then promoted himself to accountancy guru.  His small co experience seems to stem from his own one man band business. It thus appears that he has never run an accountancy firm, and I suspect his experience is mostly in the USA.

He is a qualified accountant Jim, but it's not accountancy as we know it!

I am willing to be corrected by Mr Clifford if he cares to comment.

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By ireallyshouldknowthisbut
28th Sep 2015 17:57

Hmm.  Select some random

Hmm.  Select some random assertions, some comments that may or may not be true, add some truisms and mix well with some buzzwords and one article.

Quick check through to the promoted website, and.........wow.  You are first hit by a meangingless  header in large bold font in "bob speak" and..........

 

The

 

 

word  

 

(sorry cant bring myself to type it)

 

 

 

p.a.r.a.d.i.g.m.

 

 

Ouch. 

Is it April again?

 

 

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By Vaughan Blake1
29th Sep 2015 09:40

Paradigm

Larry Trask warned in his book 'Mind the Gaffe' that this word had become so misused in marketing during the 1990s that we should all stop using it forthwith.  That was in 2001!

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By birdman
29th Sep 2015 11:42

So true...

I've been so busy pushing my envelope out of it's box for the past few years I'd forgotten I had any clients at all.

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Replying to Justin Bryant:
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By David Beaumont
29th Sep 2015 14:46

Birdman

That made me chuckle...

I've been outside the box, blue sky thinking for so long that I've actually lost the key to the box and can't get back in. There has to be a Dr Who reference in there somewhere.

I really can't take some of the articles on this site too seriously

 

 

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By thomas34
29th Sep 2015 13:05

Hogwash (really wanted to put something else)

So who are failing - the accountants (as per the heading) or the clients (as per the sentence underneath)?

I don't know why I continue to read this rubbish - it only frustrates me. If the heading had said "Why some accountants are failing some clients" the writer would at least have not insulted the whole of the accountancy practitioner profession.

 

 

 

 

 

 

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By johnjenkins
29th Sep 2015 14:14

Tell us

aweb where did the headline come from?

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By Robert Lovell
29th Sep 2015 15:31

Re. johnjenkins

Hi John,

Apologies if you find the headline misleading.

The author came up with the headline ‘See why accountants are failing their SME clients’, which we decided to cut back so it didn't run on to two lines.

It's clear some of you disagree with the content or tone of the article, but I would mention that AccountingWEB is a broad church of views

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By raybackler
29th Sep 2015 16:34

Wrong audience

Another marketing buzz word.  The article should have been addressed to clients rather than accountants and I totally agree with justsotax when he mentions "a horse to water" etc.  The most interesting bit of the job is advising clients on how to make their businesses more profitable.  Many do not listen and carry on regardless until they hit that brick wall.  We've always done it like that is a powerful argument from clients in favour of maintaining the status quo, despite it being blindingly obvious that improvements are needed.

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By johnjenkins
29th Sep 2015 15:46

@ Robert. If AccountingWeb

is really a broad church of views, tell Francoise and co to stop being petty and editing my posts.

That headline is possibly court material. Worse than anything I've ever posted. 

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By levelheaded1903
30th Sep 2015 07:33

Late to the party, but just to say, it is always in the accountants interest to have clients who take interest in their own numbers, it is common sense that any accountant will push for this. I don't think any accountant needs to be told that when clients don't take responsibility for their own numbers they adversely affect their own businesses, but also the accountants. Presently I have a client to whom I have explained several times that quite simply overheads are too large. Surprise surprise eventually business now closes, more work for me and not the type of work that I want to be involved with either to be honest. Some clients listen and some don't and its nearly impossible, to know at the outset which these will be. Some brilliant points raised and I'm not particularly eloquent so will sign off now!

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By johnjenkins
30th Sep 2015 09:38

No doubt

aweb will invite him to give a talk at next years PE.

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By levelheaded1903
30th Sep 2015 10:11

I know I said I was signing off, but am a little vexed and feel the need to say something else - to pick up on the point "accountants should proactively encourage their clients to take more of an interest and be responsible for the numbers side of the business" - they aren't our numbers anyway and why should any responsible adult ever think that they are! If I buy a toothbrush at the chemist, don't use it and get tooth decay, will someone be writing in The Chemist Weekly, that the chemist should be advising me at point of sale on how to use the brush because, I may be irresponsible and not use the brush properly? Silly example I know, and as an Accountant I really do try to explain everything to the client, and always back it up with an email also to prove I have - but isn't our profession becoming really silly when we spend time and energy covering our backs because we are in a culture "where there's blame there's a claim" and the client can (and sometimes does) feel, that the buck stops with us? Very annoying!

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