How Can Accountants Develop their Business Models for Better Client Outcomes?

In this article, our Founder and Director Jonathan Cooper, delves into why accountants should prioritise client protection and upskilling, using a triage-before-insolvency approach to build trust and grow their business.

If you missed piece in Financial Accountant, catch up below.

I believe that two key ways new accountants can supercharge the development of their businesses is both by investing in continuous upskilling and by prioritising protecting their clients.

They should always have the needs and financial wellbeing of their clients at the heart of their business model.

And they should always be up to date with the latest news and legislation, so they can offer the best possible service.

With these things in place, it will not only help accountants to build their client base, but to attract new customers and maximise their chances of getting referrals.

However, without them, it’s difficult for accountants to gain long-term trust and confidence from their clients.

While client-centricity and prioritisation, of course, means providing an in-depth, tailored service, it also means having a greater degree of insight into the insolvency process.

This includes understanding that the insolvency practitioner and liquidator are the same people, and what this means for how accountants engage with their clients.

Implementing a Triage-Before-Insolvency Model

While accountants will usually always have an outlet to insolvency, what’s important for them, as they look to future-proof their business, is that they need to ensure they’re not following an insolvency-first approach.

Accountants need to make sure their model has their clients’ best interests front and centre.

As such, the question accountants should be asking themselves is: How do I protect my client at all costs?

Accountants – both newly qualified and experienced – should be looking to employ a ‘triage before insolvency’ model in their services.

They can do this by using an independent advice and guidance company that works in the interest of the client, not of the creditors – the opposite to what insolvency practitioners do.

Instead, this company acts as a middle bridge for clients before engaging insolvency practitioners.

Providing Maximum Support to Clients

Without such guidance, company directors can sometimes make impulse decisions that could potentially lead to implications for them through the insolvency process.

And if this happens, this then doesn’t only cause problems for the business owners, but it also doesn’t reflect well on the accountant they trusted to help them navigate the process.

Implementing a triage step provides maximum support to clients through their most testing financial times.

This is because the independent expert ensures all the client’s finances are as tidy and in order as possible, and all other avenues have been explored, prior to going down the insolvency route.

They take an unbiased approach – assessing the full scenario and articulating the available options in a way that’s accessible and jargon-free. This ensures the client can make the best decision based upon the facts.

Furthermore, this approach protects clients before insolvency. It also gives them the bigger picture and protects them from any nasty surprises, should they choose to go down the insolvency route.

And if they do, accountants need to know that insolvency is only part of the problem, too.

Their clients need to know how the company was set up, what to say to staff, and what to do with their work in progress. Information not given by insolvency practitioners.

Providing a Modern, People-Focused Approach to Accounting

When it comes to accountants determining and setting appropriate fees, this should always reflect the level of service provided.

If accountants are operating with their clients’ best interests at heart, they will have greater peace of mind that the fees they are charging are fair.

Plus, genuinely looking after clients is not only a way accountants can grow their client base, but it’s an impactful way to generate a steady income – with word-of-mouth recommendations playing a vital role in populating the pipeline.

Keeping up to date with key trends and legislation is also important, but truly understanding the world of insolvency shouldn’t be underestimated.

This helps accountants to provide the best possible service to their clients, should this ever be a conversation.

And while there are both good and bad insolvency practitioners, the insolvency marketplace is undoubtedly stuck in the dark ages. It’s 20 years behind the consumer world.

Therefore, it’s important for accountants to be aware of the other options that exist. To know that independent insolvency experts – not practitioners – are available, and how they can help both accountants and their clients.

By being open to implementing a triage-before-insolvency model, accountants can then provide a better, more-21^st-century service to their client.

One which challenges the status quo in insolvency and creates a more collaborative, people-focused future in the accounting world.