Accountant - Best Friend or Distant Service Provider?

Cathy Wootton · Nov 25, 2007

I know this is a slightly unusual question but how do people see their relationship with their accountant?

We pay a set fee each year for all our accounts and any advice, but the last time we saw him was the day we signed the paperwork to create the company (8 months ago).

I am quite nervous going to the accountant to ask for advice but we know we need to.

I have some friends that both have companies and they both see theirs as friends.

choregus · Nov 25, 2007

I work for a company where the accountant has been seen very much as a friend and is now on the board following the negotiation of some great deals for the business.

I have also worked in companies where the accountant is kept at arms length.

The first scenario has definitely been the best solution from my perspective.

Kent Accountant · Nov 25, 2007

Our accountant is my wife's best friend (i hope !! )

Alpha · Nov 25, 2007

Cathy Wootton said:
I know this is a slightly unusual question but how do people see their relationship with their accountant?

We pay a set fee each year for all our accounts and any advice, but the last time we saw him was the day we signed the paperwork to create the company (8 months ago).

I am quite nervous going to the accountant to ask for advice but we know we need to.

I have some friends that both have companies and they both see theirs as friends.

You are the client and really you should have defined exactly what you required at the initial meeting. There is certainly no need to be nervous after all we are here to help the clients

If you say the fixed fee included advice firstly check the terms in the engagement letter and then if that is the case then ask away.
The worst that he can say is that what you are asking is not included in the fixed fee and he will provide you with a quotation based on what you require

Gillie · Nov 25, 2007

Kent Accountant said:
Our accountant is my wife's best friend (i hope !! )

Strangely enough Bob, I know my Accountant too very well!!

You don't have to think of them as your best friend persay, but friend yes. They come in very useful at times. You tend to find which works best for you, ie meetings face to face or telephone conversations, but you should always feel you can approach them when you have an issue or question that needs their expertise.

Cathy Wootton · Nov 25, 2007

Alpha said:
You are the client and really you should have defined exactly what you required at the initial meeting. There is certainly no need to be nervous after all we are here to help the clients

If you say the fixed fee included advice firstly check the terms in the engagement letter and then if that is the case then ask away.
The worst that he can say is that what you are asking is not included in the fixed fee and he will provide you with a quotation based on what you require

Thank you for that

Kent Accountant · Nov 25, 2007

More seriously, you need to bear in mind that beancounters are in business just like everyone else - they tend not to be charities

The product that they are selling, however they package it, is time. They tend not to have any other product on which they can make a turn e.g. a motor mechanic will charge you an hourly rate but he will also make a markup on the parts, oil etc that he fits.

Therefore the time that you get from your accountant will have to reflect the fee that he/she charges. You always need to be aware when a fixed fee is agreed that you are sure what is included. If you want daily/weekly/monthly/quarterly visits and tlc, it will need to be costed into the fee.

It is sometimes difficult to be a "friend" and have a satisfactory business relationship, but that doesn't mean that the accountant should be unapproachable.

Cathy Wootton · Nov 25, 2007

Yes, I am fully aware that our accountant is very cheap considering if you went to a larger corporate company (he is a one man band style that deals solely in new small businesses). Nothing in this world is fee which is a huge shame

HSLS · Nov 25, 2007

I found this with my first accountant, and although I have been able to 'phone for advice and have been in on a couple of occasions, I didn't really feel that they wer supportive of my business, and interested in helping me progress (I appreciate that this isn't really an accoutant's role).
I have since changed accountants and am much happier with the relationship we have. It is a slightly more expensive service, but I actually feel like I know where I'm going now, and how to achieve it.
It possibly all comes down to being human, and who we feel most comfortable with.

Alpha · Nov 25, 2007

HSLS said:
I found this with my first accountant, and although I have been able to 'phone for advice and have been in on a couple of occasions, I didn't really feel that they wer supportive of my business, and interested in helping me progress (I appreciate that this isn't really an accoutant's role).
I have since changed accountants and am much happier with the relationship we have. It is a slightly more expensive service, but I actually feel like I know where I'm going now, and how to achieve it.
It possibly all comes down to being human, and who we feel most comfortable with.

Why do you think that it isn't an accountants role?

Our role is to be as supportive as the client requires.

Accountants come in various guises and you simply need to find one that meets your individual requirements. After all you wouldn't take on any other supplier that didn't give you what you actually need would you

two sheds · Nov 26, 2007

As an accountant in practice, this is one of the reasons that I offer unlimited telephone and email support within my fixed fee-this then means that the client has as much or as little contact/support as they want with feeling anxious!

Julie

Nov 26, 2007

Cathy Wootton said:
Yes, I am fully aware that our accountant is very cheap considering if you went to a larger corporate company (he is a one man band style that deals solely in new small businesses). Nothing in this world is fee which is a huge shame

Oh I think you will find that what you are getting from the forum members is Free

Earl

DFL · Nov 26, 2007

Two Sheds

Totally agree.

Too many accountants make themselves difficult to contact, or too pricey to do so, unlimited support is what most clients want and is entirely reasonable.

DuaneJackson · Nov 26, 2007

DFL said:
Two Sheds

Totally agree.

Good to see our Partners agreeing with each other : )

I deal with lots of accountants - some of them seem to be of the thinking that if they detailed X on the quote, then X is what you'll get. If you want to phone for anything else then it's chargeable.

Friendly accountants like Jason and Julie above do seem to make up the majority of accountants (or of those I deal with anyway). "Enlightened self-interest" I once heard someone call it.

By being helpful to you they know - whether it be conciously or not - that you'll be happier and more likely to stay with them and recommend them.

So the bottom line (ha!) is that you should be looking for another accountant if you're not comfortable dealing with this one. There are lots of good 'uns out there.

Optegris · Nov 26, 2007

Our accountant is much more than just a bean counter. On a number of occasions I have gone to him for advice or just a chew on about the state of the universe and he to me so having a good working relationship benefits all concerned...

DFL · Nov 26, 2007

So the bottom line (ha!) [/quote]

I cannot believe that I laughed at that!

Reason for me is threefold

1. Before I became an accountant I set up a company and mine was the invisible man! So I understand the needs of the client as I was on 'the other side' once.

2. It is perfectly reasonable for a client to expect ongoing advice and support and I consider it an accountants duty. Most clients do not abuse an unlimited support option.

3. As you have pointed out, it is a marketing strategy in itself and leads to exceptional referral rates.

Philip Hoyle · Nov 26, 2007

I prefer being accessible and hopefully friendly to my clients. The majority of clients don't abuse the freebie phone calls and emails.

But I do find a lot of clients don't want to reciprocate. They are happy to do their own thing, do their own research, and just appear once a year with their books to be number-crunched. No amount of coaching, encouragement, newsletters, etc., gets them to talk to us.

We get a remarkably high referral rate from both types of clients, so assume they are happy with us. At the end of the day, I think it depends on what the client wants. If they want a "friend", then we can do that, however, if they want "distant" we can do that too.

Personally, I far prefer to be a "friend" as there is usually plenty we can do to nurture, mentor and advise - I don't think people generally realise just how helpful and pro-active an accountant can be if they are given the chance - it's far better than picking up the pieces after bad decisions have been made.

jrjsykes · Nov 26, 2007

Many businesses see their accountant as a business partner and to be honest that's how I see my firm.
You should never be afraid of talking to your accountant because the best advice and best tax savings are usually due to planning. When you give your accountant information after the event all they can do is be compliant which saves no one money!
Talking to your accountant shouldn't cost money! We only charge if it is outside the scope of our agreed fees. Our accounts fees include free ad-hoc telephone advice and unlimited meetings. Only after those conversation is something identified that you would like us to do - do we agree an extra work order.

Gillie · Nov 26, 2007

jrjsykes said:
Many businesses see their accountant as a business partner and to be honest that's how I see my firm.
You should never be afraid of talking to your accountant because the best advice and best tax savings are usually due to planning. When you give your accountant information after the event all they can do is be compliant which saves no one money!
Talking to your accountant shouldn't cost money! We only charge if it is outside the scope of our agreed fees. Our accounts fees include free ad-hoc telephone advice and unlimited meetings. Only after those conversation is something identified that you would like us to do - do we agree an extra work order.

I know the Coughlans ... or one of them I'm sure!! Used to live in Finmere, so I know Buckingham so very well!

jholden · Nov 30, 2007

It's interesting to hear what everyone has to say, and indeed many do become friends with their accountant, which is great but does take time.

An accountant as a distant supplier may suit some people, which is fine, find an accountant that likes that and go for it.

I personally feel an accountant has to be someone you 'like and can get on with'.

You don't have to be best friends, but you really need to like each other and be able to have a relationship.

If you currently have someone you don't feel you can approach, then even if they are cheap in cost the price you pay for using them may ultimately be high!

Best of luck!

Jason

Holden Associates

frauke · Nov 30, 2007

Yes, I agree with the other accountants on this site. I try to be pro-active with my clients, and all have my mobile number. I don't do newsletters as I think they are too impersonal, but I do encourage them to pick up the phone when ever they want and ask questions. If I don't know the answer I will find out and let them know.

I do have a seperate business no. and they can't ring me on my home number, but if they e-mail me I will normally reply (99% free advice) within 24 hours. I have one client I can't give the support she needs at the moment, and have arranged for another accountant to help. They keep me informed which I and the client find reassuring. (I also pay for their services not the client, but then I see it as them helping me out and ensuring I can provide the best service I can for my client).

"On paper" I'm not the cheapest - but as one or two clients who left and then returned, have told me - if they build the free advice into the services I provide - then overall - I give good value. I am sure that most accountants on this site try to do the same.

miketombs · Nov 30, 2007

There are accountants who only see their clients twice a year - once to collect the books and once to collect the cheque. I don't think that makes sense for most businesses because the accountants can't be proactive that way. Tax advice is a good example - it's too late to change things after the year-end; any advice needs to be given ahead of time. That can only happen in the context of an all year around relationship, which is what I have with my clients, and I'm sure is the norm for most accountants on this forum - after all, we wouldn't be giving free advice here if we weren't like that.

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Accountant - Best Friend or Distant Service Provider?

Cathy Wootton

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HSLS

two sheds

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