The value of knowing of your clients well as an accountant

The value of knowing of your clients well as an accountant

As accountants, we work with businesses, supporting them to effectively plan ahead and achieve their ambitious goals. Each organisation is different and it takes time to understand what solutions and services we can offer to enhance their success.

Whenever the Monahans team brings on a new client, they invest a significant amount of time into understanding the basics about the business and its history. By doing so, the team is able to tailor their advice to take into account all elements of their financial and personal situation.

We spoke to Partner at Monahans, Clare Bowen, about the importance of client relations and why it’s a major element of being a great accountant.

What kind of questions do you ask a new client?

We often ask what a client’s personal situation is, for example, establishing their age, if they are married, if they have children, and where they live. This information might seem unrelated, but it helps us with tax planning. Asking questions about someone’s personal life can feel a little invasive, particularly when you are in early stages of getting to know them, but I always clearly explain why the information is needed and keep our conversations transparent. If clients understand the ‘why’ behind the information gathering, they are usually more than willing to provide what you need.

We also like to find out what the individual’s preferred communication method is, whether that be email, phone calls or in person meetings every few weeks, it’s important to get a sense of their work ethos.

Why is this level of understanding important?

Getting the full picture

It's vital to understand what the business’ aims and goals are - whether they are looking to grow, consolidate or grow to sell, for example. On top of this, you must understand what hardships they faced and what they worry about. Identifying this information helps to inform the type of advice you provide, and the manner in which you deliver it.

Even if your aim is just to provide business guidance, you still need to have a grasp of their personal financial situation. You cannot advise clients on one part of the business without understanding how it impacts another part. To provide sound financial advice, you need the full picture. Knowing exactly how much money your client needs to take home is essential as your recommendations can be shaped around this figure, if there is an option for them to take home a reduced dividend and still cover costs at home, then we can advise on sound investments.

This context and knowledge all plays a part in building a comprehensive picture of a client, which ultimately will result in them receiving a more tailored service that considers their financial positioning as a whole.

Establishing the best way to communicate

Getting to know a client well, understanding the context behind their business and their background also helps to inform how you communicate with them and the type of approach that they are likely to respond best to.

If you know a client well, for instance, you can often gauge how they will feel about a suggestion you're going to make, before you make it. It also helps to inform your approach to sensitive topics, such as whether being more direct or more subtle will be most effective. There are certain clients that appreciate a direct method and are willing to take risks, but others may be more emotional and protective so would prefer a gentle approach. It’s important to remember that you may be dealing with legacy that comes with a multi-generational business, and the person leading the operation may feel pressure to follow in their families’ footsteps.

Making connections

I believe that knowing your clients well is particularly helpful in finding synergies between clients and making connections. At Monahans, we are lucky to serve a number of clients from a wide range of sectors and organisations, which can be useful in creating partnerships if the opportunity arises.

Building trust

Not only does developing a close relationship with clients make the process more enjoyable for all parties involved, but it also makes it more fruitful. Clients need to be able to trust their accountants and feel comfortable in coming to them for advice around sometimes sensitive or challenging issues.

Often, we will be speaking with clients during a stressful time and knowing them well enough to be able to provide emotional support when challenges arise. To fulfil the well-rounded service Monahans offers, the team needs to be able to be a support network that eases the stress.

What are the risks of not knowing your clients well?

A lack of understanding about your client’s whole financial profile, and how each element may impact another will significantly impede your ability to provide tailored advice and sound recommendations. Getting to know your client well also ensures that you are not making assumptions about them or the business. If you have a client of a certain age, it could be easy to assume that they don’t have children, which could lead to child benefit implications being missed.

In accounting, we sometimes see firms offering quick figures without the time invested in getting to know the client. Whilst this may work for ‘off-the-shelf’ standard businesses, not many of these exist. Often, there are numerous, complex moving parts within a business, and various factors at play, which may impact the advice given. Many clients really benefit from that extra level of support in order to nurture their businesses and help them to flourish.

If you ever need support, guidance or to discuss your options, get in touch with our team of experts today.

Clare Bowen