We’ve all been aware of the current struggles that have hit our economy in the last year, with everything from petrol to energy soaring. Everyone wants to do their bit to help- and this is no exception for accountants. But how can accountants help clients in the current climate?
Provide customers with insights
Customers will be very unsure at the moment, and therefore you can use your expertise to shed light on the situation. With the recent announcement of Making Tax Digital for Self-Income Tax Assessment (MTD ITSA), there are even more questions being asked by business owners. Now is the time to offer support and guidance, so that you can help ease clients into this transition. More sole traders are now likely to invest in accounting services in light of the recent announcement, so now is the time to prepare for this busy rush.
Business owners will often rely on accountants to provide them with information and guidance during this eventful transition, so it’s worth thinking about how you can offer additional support whether this is in extra meetings, or even a newsletter to provide tips and updates.
The cost-of-living crisis
The last thing any company or client wants to do during these tough times is to make a decision that will negatively impact their cashflow. Accounting practices can, of course, help in this situation. Be transparent with clients, and don’t be afraid to tell them if they’re going down the wrong path. It’ll also benefit clients if you make general observations on what unnecessary expenses they can eliminate. Not only will you be able to offer general support during this time, but you’ll also be able to provide strategies and risk assessments for clients- both of which will help them to soar through the crisis. There are a variety of ways you’ll be providing help; assisting with advice on business costings from staff to investment, informing clients of schemes and investments that might benefit them, and advising on tax and overall business finance forecasts.
Communication is key
You may be an accountant, but you are also a person. That means that you can offer emotional support to your clients by listening to them and being empathetic. When someone is going through something difficult, they need someone who will listen without judgement or interjection. If a client feels like they have no one to talk to about their problems, they may feel even more isolated and alone in their struggles—which can make it harder for them to move forward with their lives. Just being there as a sounding board can go a long way towards helping your clients heal emotionally or financially after loss or tragedy has struck them. Another way you can help is by offering advice when appropriate; if you know of resources available in the community that might help out your client during this time, let them know! Or maybe there’s something else going on with their business/finances/etc.; taking the time to understand what’s going on in their life will allow you more room for meaningful conversation and support than if you only focus on taxes all day long. If a client is having difficulties in their lives, it’s important to be aware of it and try to help them however you can. This can go a long way towards building trust and loyalty with your clients; if they know that you’re there for them when times are tough, chances are good that when things aren’t as bad (and thus easier to manage), they’ll come back for more services from you!
Whatever situation your client is going through, be sure to use effective communication when you support them. Clear and precise communication can reduce errors as well as gain the trust of clients. Be sure to pencil in time to talk to each client, and if you’re struggling to do this it might be worth looking into hiring new staff to keep updated with your workload. If you’re concerned about taking on a full-time member at the moment, then there is a solution. Totus Finance can help by providing you with full-time as well as part-time staff, who are able to work flexibly depending on your needs. Make sure that you’re able to cater to your client’s needs and put measures in place to do so.
Help with the cost of living.
While most people can budget their fixed expenses, many struggle with understanding how they spend their money on variable costs. Here are some tips:
• Help them to understand the difference between fixed and variable costs and how they can use these to their advantage.
• Learn about your client’s personal budgeting needs. Every person has different financial priorities; for example, one individual may find it worthwhile to go out for dinner every week, but another might prefer saving that money for a down payment on a house one day in the future. Helping each person understand what’s important will help them set realistic goals and make decisions accordingly! Each person will be different, so it’s best not to assume what your client will want to do with their finance.
Create a financial forecast for the coming months.
The first step in creating a financial forecast is to identify the problem that your client has. You can do this by talking with your client and asking questions that will help you understand their situation. For example: What happened? (Did they lose a job, or have another drain on their cash flow?) How long do they think this situation will last? (How long will it take to recover from the loss of income?) Once you understand their current circumstances, it’s time to put together a plan for how they can recover from them. Some clients might take a while to be completely open and honest about their situation, which is why it’s valuable to build that trusting relationship.
Support them
Finally, the main way that you can help a client struggling in uncertain times is to support them. Just knowing they have someone to support them will be a great help.
