Top mistakes accountants are making with existing clients

Interesting article from about some of the traps accountants can easily fall into. Have a read!

Numerous studies show that attracting new clients costs a lot more than retaining existing ones. Studies have also revealed that the reason a client leaves may not be what accountants expected it to be. Many accountants believe pricing plays a bigger role in clients’ decisions than it actually does.

So what are the top mistakes that accountants are making when it comes to retaining clients? Here are a few, along with some suggestions for preventing your firm from making them.

Mistake #1: Believing that clients will ask for help when they want it. Accountants who expect clients to inquire about additional services or to seek advice on financial issues are not only missing out on cross-selling additional services, they are also putting client relationships at risk. Technology provider The Sleeter Group recently surveyed small and medium-sized businesses about why they left their accountant, and the top reason was because the accountant gave only reactive—rather than proactive—advice. Tip: When presenting financial statements or tax returns to a client, identify one or two open-ended questions to ask so that you can start the dialogue with clients about their business concerns and begin to offer proactive advice. It can be something like, “What was your biggest challenge last year?” or “Is there anything I can help you with in the year ahead?”

Mistake #2:  Assuming clients understand what accountants do. Sageworks chairman Brian Hamilton says many business owners don’t use their accountants to help manage their business because it doesn’t occur to them. “When they think of their accountant, they think of taxes,” he says. It may not occur to them that you can help them decide whether leasing or buying equipment makes better financial sense, or that you can help them identify ways to prevent fraud or speed up payments from customers.

Hinge Research reported recently that two-thirds of buyers of accounting and financial services admitted they don’t know all of the services offered by sellers. At the same time, 44 percent of those buyers said they were interested in additional services. It’s up to you to educate your buyers. Tip: Include a list of all services your firm offers when you communicate with clients (presenting financials/returns, or when sending a thank-you note for recent business). Break the services down into language the client can understand rather than industry jargon, using examples where possible.

Mistake #3: Assuming clients already know what to do to run their business better. Obviously, business clients aren’t stupid; they’re running businesses very successfully in many cases and have solid expertise in many aspects of operating the business. But many of them don’t know finance, and they may be so caught up in the day-to-day running of the business that it doesn’t occur to them that they can take simple steps to improve financial results. Many of them are also intimidated by their accountants because it can seem like they’re speaking a different language. Tip: Use plain-language reports and graphics to show a business client how their business is performing and to offer suggestions for improving financial performance.


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