Why dont people ask their accountants?

[MyAccountantOnline]

I'll be honest here the point of my post is from a marketing perspective - my question is why dont people ask their accountants for advice?

Is it that they worry about costs, feel uncomfortable with their accountants, find it difficult to contact them, or other reasons?

As an accountant I see so many posts on here for questions which should be directed at their accountants - very often really simple questions that could be answered within a few minutes, or questions which if asked could potentially save fees eg using software properly etc.

 

[Alison Jones]

I would say new businesses who are just starting out maybe in a situation that they see if their business idea works and that the business starts making money before they get around to hiring an accountant, new businesses all money counts as most new businesses this is borrowed with interest costs.

With forums I don't think it is wrong that people ask questions as long as they answer other peoples question that they know the answer to in return, that is how forums work, shared knowledge as everyone has different skills and knowledge so everyone saves money by using forum.

Alison

 

[MyAccountantOnline]

Thanks Alison - I really do think Forums such as this are excellent, not knocking it at all, but just wondered why people seem relunctant to get advice from their accountants.

Would perhaps more prefer the ability to email questions to their accountants? Do accountants not use email as much as they'd like?

I quite take the point about new businesses - perhaps people dont realise that many (probably most) accountants offer free intial consultantions for potential clients?

 

[HSLS]

The first accountant I used as a new business was unapproachable and didn't have a very good attitude. Being new to it all, I didn't really question it, felt unable to ask questions and thus made some glaring errors! This situation may apply to others on here. It is difficult to choose an accountant when you are inexperienced.
However, my current accountant is brilliant. I can ask him anything I like without being made to feel stupid and he is infinitely helpful.

 

[RAL]

Nicola

Recently I was on other forum and I saw question on dividend and payroll etc. The questioner started with "Our accountant seems a little slow in answering some questions about this ... we will calculate the Tax and NI on the salary payments when we hear from the accountant" I answered the question.

After few days, the same person posted question about VAT backdating invoices and followed by company house filing, accounting year, tax year, Inland Revenue etc.

I think I read on accountingweb.co.uk that some people are using the forums to do DIY accounting and tax. Some one commented that sometimes, people pretend to be an accountant and try and find the answwer.

I leave for you to decide!

 

[Alpha]

Nicola

Firstly the main reason is that many of the people who come onto this forum either cannot (in most cases) or will not pay for accountancy services.

A prime example on here is one member who continually asks questions, about dividends and tax(and also spreads the questions on other forums as well), saying that he will 'check with his accountant but just wanted to get the general information first'. It is glaringly obvious that this person doesn't really have an accountant so must come into the category of not wanting to pay

There are also those that would like to 'test the water' so to speak to determine the knowledge of the accountants here and to see if they can engage one of them later.

Finally there are those who have an accountant but possibly he doesn't have knowledge of one particular area eg a Sage query or similar.


I'm sure that there are also other micro reasons eg they need information quickly but their accountant genuinely is on holiday (As one prominent member has done with me on a couple of occasions)

 

[Philip Hoyle]

I don't think it is cost or lack of email facilities as suggested by others.

We don't charge any existing clients for questions on a new subject that they may ask us - we give our quick "off the cuff" reply completely free which covers 99% of the questions asked - only if we have to start going deeper to research a question or if the question sparks a longer exchange will we consider charging.

As for email, we have the opposite problem. I constantly use email yet we still have clients who send a letter through the post in reply to an email from me! There are still about 40% of my clients who I can't email - I constantly push clients to give me an email address but many either don't have it or won't give out their email address. And, of course, there are those who constantly change their email address and never tell me, so they never get the emails I send them!

It's not just clients not asking their accountants and asking on a forum instead - there are plenty of clients who just don't ask anyone at all or try to work things out themselves. I think it is a trend these days, with the internet etc., that people don't think they need the professionals anymore seeing as they can just ask on a forum or look at HMRC's website themselves. I suppose it is like GP's where their patients trot along with internet printouts of what they think their ailments are! Looking at other forums, there are loads of people who have got into trouble with partnerships, leases, loans, etc simply because they didn't take professional advice.

On a couple of occasions, I've seen my clients ask questions on this and another forum. It's not as if they wanted a second opinion - they never asked me before they posted and didn't ask afterwards. I find it strange to say the least considering I check my email hourly every day, and also at weekends and evenings, and try to respond to emails within a day, so it isn't as if they're keen on getting an answer and can't wait for me!

I've made it a policy to tell clients to "talk to me" at every opportunity. Most do, but there are still some who are constantly doing the wrong thing and go on to keep doing things wrong despite me pointing out that they could have saved themselves a lot of cash and hassle if they'd just picked up the phone beforehand. I guess some people will never learn.

 

[MyAccountantOnline]

Philip I couldnt agree more with what you say - I just cant help thinking as accountants we are failing somewhere if our clients/potential clients dont see us as a first port of call??

I really hope some more non-accountants post here.

 

[Gillie]

I have just had to stop my accountant, gossiping with another forum member over a cup of tea and told him to get back to work!! Honestly!!!!

No seriously, I think on here, most post and ask questions as they either don't see a need as yet for an Accountant, or think they can do it all themselves.

As regards, getting in touch and getting the information from your Accountant, I think some have problems getting in touch with them, and in the days of McDonalds, and boy does it have a lot to answer for, people expect immediate and instant communication and responses, and when they don't they feel aggrieved, usually quite wrongly.

Will admit that in days of old, when I needed to speak to various, it could take a couple of days, as messages sometimes were not passed on by various members of staff, or emails not opened due to perhaps the person you are trying to speak to being out of the country, or out on some other duty (vat inspection etc).

 

[UKSBD]

I personally like to find out as much as possible before seeing my accountant.

I try to only see him once or twice a year, and the more I hang around on
forums the more questions I want to ask him, rather than pestering him all
the time though I try to find out as much as possible throughout the year
and have one long list of questions, which I like to think I have a rough
answer to already.

In answer to the question though, main reason I don't contact him is that
I see it as pestering him, by asking questions here I can ask 20 or 30
questions throughout the year, I imagine it would drive him mad if I
asked him those questions instead.

 

[yorkshirejames]

I think many people fear that their accountant will start the meter running from the moment his receptionist answers the telephone.

For others, it could genuinely be wanting to get a second opinion or background.

Others just a lack of trust.

 

[JustinK]

A lot of our accounting and bookkeeper partners bundle their services to include pre-determined activities, whether it is end of financial year statements, monthly management accounts, VAT and ad hoc advice. This way if their clients do have a general query they can contact without the fear that the meter is running, as this is included in the fixed fee.

Some include Xero in their bundled service also.

 

[mikelaluz]

Hi Nichola

I would tend to agree with YorkshireJames. Most people feel that if they initiate a call, an email or a conversation with their accountant they are going to be charged.

If this is true then it is the accountants who need to educate their clients. I work with a number of accountants in practice development and I am always astonished at the lack of communication they have with their clients. This is particularly bad from the clients perspective but equally so from the accountants. Contact should be at the very least on a monthly basis. This can take the form of an email, newsletter or telephone call and each should be rotated. You should also have a feature on your web site stating that you offer free telephone, email and face to face advice when ever needed. Apart from the obvious benefits to your clients there is also a whole range of fee earning opportunities that you would not previously have known about.

By contacting your clients more regularly you will open a very natural dialogue and break down the barriers which clearly exist between many professionals and their clients.

The other huge upside for the accountant is that they get to really know their clients. From a marketing stand point this is an imperative. The implementation of referral systems and testimonial gathering will become pleasant events forboth accountant and client alike.

Regards

Mike

 

[Hogrill]

I use an accountant but do find that I tend to contact him less mainly due to the amount of information available elsewhere.

Whilst I would never base a financial / taxation decision based on info found on the net or elsewhere I find it useful to do some research just to get a better understanding on a subject before contacting him.

Also he may not have the answers for certain subjects such as on accounting packages as mentioned by someone else.

Finally he is also an owner of a small practice and spends a lot of time on the road and in meetings with clients and while he is very good at ringing back it can be easier to look things up myself.

 

[DickM]

I'll be honest here the point of my post is from a marketing perspective - my question is why dont people ask their accountants for advice?

Is it that they worry about costs, feel uncomfortable with their accountants, find it difficult to contact them, or other reasons?

As an accountant I see so many posts on here for questions which should be directed at their accountants - very often really simple questions that could be answered within a few minutes, or questions which if asked could potentially save fees eg using software properly etc.

In MHO this is an "old chestnut".

However, as I've offered an opinion, I'd like to offer a solution, not mind-bending or ground breaking, ............... as a start:-

Accountancy Services Companies (large, medium or small), should target a large town near their practice, somewhere that has a population of 250,000 +/- 10%, and hold an open day (or days), one week of the year (every year). Near me, that would be Southend or Basildon.
On offer should be:
(i) free advice on business start ups, as well as for those DIY accountants/one-man band businesses, who think they know enough to get by the basic legal requirements of Co House and HMRC.
(ii) A heavily discounted QUOTED fee, including VAT where applicable(with no hidden extras) - for new customers, to experience a professional service for .... say three months.
This can be expanded to include much, much, more, like free personal tax estimates for small company directors, which clearly indicate minimum PAYE income for zero tax and lowest legal NICs. Along with an absolutely clear working example of (say) "how to draw maximum income tax free dividends", with a working example how HMRC first deduct 10% dividend tax, and then add it back for non-higher rate tax payers ('cos believe me, this confuses the Ffff out of most non-number crunchers).
(iii) Some brief examples of accounting for Company Cars/vans/trucks - Lease vs buy, fully expensed Co vehicles vs privately owned.

I know I have only scratched the surface, and I am also sure that some of you will say this has all been tried, but if it's kept as simple as possible so that when the would be client nods, he means "YES, I fully understand" (confirmed if all his/her "lights" are on . If you think it's yes (as they don't want to appear dim), then further dumb down the explanation until they can answer a basic test question on the subject ...... patience maybe rewarded by gaining a life-long client!

If what's on offer has been delivered convincingly, and your Practice's free desk calendar, or computer screen saver (if they're not using a hammer, chisel and tablet of stone) is displayed by the potential client on their office and/or home desk. Then, even if only a small client gain was achieved @ the "open day", I will guarantee that some one or two director companies, will hit a point in their Company's business year, when "the paperwork" will get too much of a headache, that they will look up, see your calendar or whatever, and decide to bite the "professional help" bullet.

 

[Nell01]

we have an accountant(recommended by a business contact), who uses email very well(he actually organised setting up of my husbands business through a third party). Being new to all of this and requiring the answer to so, so many basic questions , i find it benefits me to read posts or ask simple questions on here so as not to feel really stupid, but would not feel awkward in asking our accountant. In fact at the moment I send roughly one email a week with points i require to ask. this will obviously change as the time goes on. THE POINT HERE IS IT MAKES ME FEEL BETTER having a little knowledge.
Helen

 

[jolly]

Hello,

It is not as simple as "why we don't contact our accountant", as many of us do.

However, sometimes, it is weekend, and I don't want to pester my accountant on a Sunday, but I want to get on with my work (eg. imputing data into bookkeeping software). So, I ask the Forum.
If some helpful soul is hanging about on the Forums and is willing and able to answer my question(s), that's great, I am very grateful. If not, I will call my accountant on Monday-Tuesday. But my accountant works in a really busy practice, and sometimes I get the answer to the smaller questions answered quicker here, rather than wait for my accountant to call me/e-mail me back when he is free.

Another reason is, sometimes I have already called him xx times in a day, and I just feel bad calling again, especially if it is not an urgent question. He is very approachable and does not make me feel bad, however, I feel bad calling several times in a row.

We generally see our accountant for a face to face meeting 2-3 times a year (depending), and of course we can call e-mail him. However, it is nice to be able to aks Forum members, too, especially after hours and on weekend.

For me, it is not about paying, even though he is a very expensive accountant, he is worth his "weight" in gold. Also, he won't charge us for replying to a few e-mail question or a phone call. It is just that it is sometimes useful that there is an alternative source of getting a reply, without having to leave messages to him (if he is busy, as I am not his only client) or pester him on a weekend or after hours. That's all, at least for me.

 

[frauke]

I've never seen any of my clients on a business forum.

I have always told them if they contact me for advice, generally its free. There are a few provisos - but I tell them at the time and explain why, so they don't feel silly and can make a decision. Generally I think I am very good at reassuring them. I still get the odd, so and so have told me ............. and believe they go away confident and happy.

Occasionally, if I spot something I will send them an e-mail, or ring them and make suggestions. I like to be proactive, and keep in touch with them. I like my clients to think they are getting value for money. I have entire families and their businesses, as well as clients who have been with me for over 25 years, so I must be doing something right. I have had the odd "why do I bother" occasion, but it never lasts. I always go back to giving advice, even if its ignored, and then given for a 2nd or 3rd time!

 

[MyAccountantOnline]

Thank you all for the comments - interesting reading!

 

[Mattonella Tile Studio]

I think it's just convenience, and sometimes speed. If I've got the forum open and something pops into my head I'll post and generally always get a quick, helpful reply. I feel that's better than bothering my accountant who answers his emails in the evening (FOC if it's a quick query). For anything too specific, or a bit more complicated I'll email my accountant.

I guess it's the same with the tiling forum. A lot of questions posted on there could be answered free of charge by calling the manufacturer, but equally they can be answered by forum members. It's just a different channel.

 

[mediah01]

I have lost faith in my accountant and will soon be looking for a new one. I have emailed him with three fairly general questions over the past six weeks and he hasn't found the time to answer one of them! Sometimes you can find info on the net but need a professional to confirm. That's when forums like these can be handy.

 

I'll be honest here the point of my post is from a marketing perspective - my question is why dont people ask their accountants for advice?

.

If accountants were marketing experts.

They would not be accountants now would they.

biggest mistake is to ask an accountant about marketing ,its theory for them.

Ask a marketing expert.or is that to simple.

Earl