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Client communications: The language of money

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18th May 2010
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Effective client communication is about more than getting the figures right. Rob Ashton explains how to write financial information in plain English.

Accounting has its own language and is often riddled with jargon that even experienced business people can sometimes find difficult to understand. Even if your clients are financially savvy, it can still be difficult to explain money matters.

Writing financial information in 'accountingese' can waste time and money. If your clients are unclear about what your figures mean, they'll ask for further clarification. A single document could lead to several hours of unnecessary (and frustrating) follow-up phone calls.

That's one reason why the tide is turning in the financial industry. Leading firms such as Deloitte, Ernst & Young and Grant Thornton have commissioned specialist writing training programmes, and more accounting firms are following suit, adopting plain English in all their written communications.

The Financial Services Authority keeps a watchful eye on adverts for financial products and services that are misleading, so as a finance professional, you still have to make sure your writing is not just legal, but effective. When communicating with your clients, there are a few tips to bear in mind.

One: Put your reader first
Many accountants overestimate the knowledge their clients have. Even if you have been working with a client for many years, there's no guarantee they really understand the nuances of finance.
Get back to basics by asking yourself the following questions:

  • What is the document about?
  • Who will read it?
  • How much do they already know about the subject?
  • What do they absolutely need to know?
  • How important is the subject to them?
  • How interested are they in the subject?

Use the answers as a guideline for the amount of detail that you need to include in your document.

Two: Avoid a mind-dump of ideas
Whether you're writing an email, contract or report, do plenty of ground work before putting pen to paper. Brainstorm all your ideas using a mind map and then put your points in order of importance. If you're having trouble getting started, ask yourself the questions: Who? What? Where? When? and Why? Becoming clear in your thinking helps you to create clearly structured documents that are easy to follow.

Three: Communicate technical terms in plain English
Financial abbreviations and other technical terms can be useful when communicating with colleagues but they can confuse clients. For example, the term 'accrual rate' may seem simple but it still needs to be accompanied by an explanation of how the interest is built up. Similarly, never assume that your clients will understand terms such as 'smoothing', 'arbitration' and 'cap and collar rate'. You don't need to dumb down your writing, just make sure you provide clear, concise explanations. 

Four: Avoid verbosity
Often it's the words in between the jargon that cause the problem. Never add in redundant words into your writing. For example, 'I herein enclose details of your asset classes for the aforesaid investment, as requested' sounds complicated, archaic and stilted. A much simpler way of writing it is, 'I enclose details of your investments, as requested'.

Five: Opt for verbs instead of nouns

Verbs help to give sentences movement and life. So write, 'We will decide on our next steps on Monday', rather than 'A decision will be made on our next steps on Monday'. The word 'decide' is more powerful than 'decision'. Also, the first sentence is written in the active voice, so it is punchier.
 
Six: Keep sentences short and sweet
Aim for your sentences to be a maximum of 20 words. If you make your sentences longer, it's likely your readers will have trouble making sense of what you mean.

Remember, clear language makes sound business sense. It sends out the message that you have nothing to hide and that your words are as transparent as your financial dealings.

Rob Ashton is chief executive of
Emphasis, the specialist business-writing trainers.
 

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By Bob Harper
18th May 2010 20:03

Developing a USP

 For firms that understand the value of developing USPs then Plain English is something they may want to explore. Here are two resources:

1) Plain English Campaign http://www.plainenglish.co.uk/

2) Plain English Software http://www.editorsoftware.com/

Ideas include:

Become a Corporate member of the Plain English campaignGet standard letters Crystal MarkedHave consistent communicationOffer a guarantee that clients will understand their accounts, tax bill and your advice!Plain numbers...use of graphs!Press Releases on tax and financial issues to demystify jargon

Bob Harper

Portfolio Marketing

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By MarionMorrison
19th May 2010 08:02

More thinning needed

I'd de-mystify what you have even further

Original:'I herein enclose details of your asset classes for the aforesaid investment, as requested'.  Simpler: 'I enclose details of your investments, as requested'.  Simplest: 'I'm enclosing that list of your investments that you asked for'.

Original
: 'We will decide on our next steps on Monday'.  Simpler 'A decision will be made on our next steps on Monday'.  Simplest: 'We'll decide what to do on Monday'.

Using vernacular spoken English both on the phone and in print has been our USP for donkey's years.  Accountancy isn't unique as a profession in using formality and jargon to justify higher fees.  That belongs to an era when the world had implicit respect for professions - we seek to undermine that aura, whilst other firms seem to want to cling on to it. 

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