Client communication in accounting – Why accountants struggle with it?
Client communication in accounting is vital for building trust. Accountants need to explain financial information clearly. It’s important that clients understand complex ideas without feeling lost. Accountants struggle with it due to many reasons, like not having regular connects with the clients, clients might have confusion on the financial terms, and more. Here is a list of all the possible reasons due to which you might be struggling with client communication in accounting.
1. No regular connects
Do your clients only reach out once a year? This can create a rush of work during busy times. It would be better for both you and your clients if you had regular updates on their financial health.
How to fix it:
Offer ongoing advisory services. Instead of just handling tasks at set times, provide regular insights into their business. Schedule check-ins every few weeks or months to stay updated on their needs and challenges. This way, you can avoid the last-minute rush at year-end. For example, if you are providing them the self assessment tax services, then you can block their calendar for 15-20 mins every month, take their update what they are working on and what they are not working on. This way you can avoid the last minute rush with the things.
2. Confusion over financial terms
Accounting has its own language. Terms like “general ledger” or “accounts payable” can confuse clients who are not familiar with them.
How to fix it:
Provide resources that explain these terms clearly. You can create a glossary or share articles that help clients understand the financial concepts discussed in meetings. This will prepare them for conversations and improve their understanding of their financial situation. For instance, if your client is not from the accounting field, and is not familiar with the major accounting terms, then you can share with them a chart explaining the meaning of all the accounting jargons or you can share with them an emailer where all these accounting terms are simplified. This way you can avoid the confusion they might have over the financial terms.
3. Uncertainty about finances and deadlines
Many business owners feel unsure about their financial status between meetings. They may also forget important deadlines for submitting documents.
How to fix it:
Encourage active participation in their finances. Use a system where both you and your clients can view financial information in real-time. This transparency helps them stay aware of what they need to do and when. If they have questions, set up quick meetings to clarify any uncertainties.
4. Late document submission
It can be frustrating when clients do not provide necessary documents on time, such as tax reports or financial statements. Constant reminders can be exhausting.
How to fix it:
Implement a system that allows you to access the required documents easily. Encourage clients to keep their records updated through regular communication. This proactive approach reduces the chances of missing deadlines. You can remind them every 3-4 months about the list of the necessary documents that will be required, so that not everything is left for the last minute. Once all the documents have been received then not everything will be left for the last minute.
5. Incomplete or incorrect information
You may often deal with disorganized records from clients, such as shoeboxes filled with receipts or missing documents.
How to fix it:
Encourage clients to manage their own records more effectively. Provide guidance on how to keep their information organized and up-to-date. Regular discussions about the importance of accurate record-keeping can help them understand its significance. Recommend clients user-friendly accounting software like QuickBooks or Xero that can automate record-keeping processes. Highlight its features such as receipt scanning apps that allow clients to digitize documents on the go and cloud storage for easy access.
6. Difficulty with technology
Some clients may struggle with technology, relying on outdated methods like paper records or old spreadsheets.
How to fix it:
Help clients see the benefits of using modern tools for managing their finances. Offer support and training so they feel comfortable transitioning from traditional methods to more efficient systems. Start by identifying specific challenges your clients face with their current methods. Customising your approach to address these issues can help them see the value in transitioning to modern solutions.
7. Data migration issues
When switching to new accounting systems, moving data can be challenging and time-consuming.
How to fix it:
Provide assistance during the data migration process. Whether you do it for them or guide them through it, ensure that the transition is smooth and efficient. Introduce them to advanced data migration tools that specialize in financial data, such as Strongbox or Data Ladder. These tools are designed to handle compatibility issues and automate much of the mapping process, ensuring a smoother transition and reducing the risk of errors during data transfer
8. Using inappropriate tools
Sometimes, clients choose complex accounting tools that don’t suit their needs, leading to confusion and frustration.
How to fix it:
Advise clients on selecting simple and effective tools for their business needs. A straightforward solution can help them manage their finances without feeling overwhelmed by unnecessary features. Arrange for demonstrations of recommended tools. Seeing the software in action can help clients understand its capabilities and ease of use, making them less likely to opt for overly complex options.
Conclusion
Improving client relationships takes effort and understanding of common challenges. By addressing these issues proactively, you can create a more positive experience for both you and your clients, leading to stronger partnerships and better outcomes in client communication in accounting.
FAQs
1. How often should I communicate with my clients?
Aim for regular check-ins every few weeks or months to discuss financial matters and maintain an open line of communication.
2. What if my client still doesn’t understand financial terms?
Be patient and use simple language when explaining concepts. Consider providing written resources they can refer to later.
3. How can I encourage timely document submission?
Set clear deadlines and send reminders well in advance of due dates to help your clients stay organised.
4. What should I do if my client is resistant to using technology?
Offer support and training to help them feel more comfortable with technology, highlighting its benefits for their business operations.
5. How do I assist clients during data migration?
Provide clear guidance throughout the process, ensuring they understand each step and feel supported as they transition to new systems.
Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.