Originally posted on 2 Jan 2014

I came across this and wanted to share it with you: Bloomberg BNA executive editor of tax and accounting George Farrah discusses how accountants today are dealing with the economy, technology, globalisation and practice management, in an interview with accountingTODAY editor-in-chief Daniel Hood, here.

Whilst you’re on the accountingTODAY website, why not view this video: Marketing Trends in Accounting – available here. Art Kuesel of Kuesel Consulting discusses the top three marketing trends in the accounting profession in an interview with accountingTODAY managing editor Tamika Cody at the Growth & Profitability Summit in Orlando.

But, according to research by ICAEW, the greatest issues facing accountancy firms in the current climate include “needing more clients”, “late payment of [fee] invoices” and “trouble billing time on ledger to clients in full”. “The main thing that affects us is cashflow,” comments Kara Williams, partner at Welsh firm Ellis Lloyd Jones and a member of ICAEW’s practice committee. “Our clients still have to have the work done so our overall fee income is not necessarily less, but more of our clients are taking longer to pay than previously. We are having to chase debts a lot more than we used to.” The firm is addressing this issue by encouraging new clients to pay by monthly standing order and offering a 10% early payment discount for fees settled within two weeks of issue. – See more here.

The ICAEW are right, particularly about getting paid for the work and the trouble in billing for all the time on the time ledger. I blogged on this (Pay Daze: Do’s and Don’ts of Billing) on 30 December, here. Don’t forget that if you agree fees at the outset of an assignment, bill early (as soon as you’ve done the work) and chase early, and identify extra work as it happens rather than months later, you’ll increase your cash flow and fee income dramatically. See Bizezia’s calculator which shows how much money you could be throwing away by not doing these simple things.

By the way, when was the last time you looked at your firm’s Engagement/Client Care Letters? In today’s business climate, anything less than a full and comprehensive set of Terms and Conditions of Business is professional suicide. Your firm could be much closer than you think to an expensive and embarrassing professional negligence claim. Litigation against accountants is on the rise. There’s a free evaluator of where your firm stands here. Don’t forget that Professional Indemnity insurers are increasingly acknowledging the effectiveness of firms’ risk management strategies in assessing the premiums payable. See how your firm measures up:  Try the Professional Negligence Timebomb Evaluator.

CE white 500pxThere a useful article I wrote which outlines how having a formal letter of engagement in place can help you avoid getting sued, here. My view is that setting out your terms of business with your clients is the only sensible way of delivering professional services. To do anything else is professional suicide: see another article I wrote here.

What are your thoughts? Email me at mpollins@bizezia.com.

Martin Pollins

Managing Director at One Smart Place
Martin Pollins is a Chartered Accountant and MBA with wide experience in corporate finance and business management. He has served on the boards of several companies, including those listed on the London Stock Exchange, AIM and OFEX. He is Chairman and Founder of OneSmartPlace and was a Council member of the Institute of Chartered Accountants in England and Wales from 1988 to 1996. He was managing partner of PRB Martin Pollins, based in Sussex, the first Accountancy firm to advertise on British television.He went on to create and launch the CharterGroup Partnership (the UK’s first Accountancy network) and then LawGroup UK (at the time, one of the largest networks of lawyers in the UK). In recent years, he helped to raise several £millions to fund British films such as The Da Vinci Code, Bridge of San Luis Rey, Head in the Clouds and Merchant of Venice with actors such as Charlize Theron, Robert De Niro, Al Pacino, F. Murray Abraham. Kathy Bates, Gabriel Byrne, Geraldine Chaplin, Tom Hanks, Ian McKellen, Audrey Tautou, Penélope Cruz, Steven Berkoff, Lynn Collins, Jeremy Irons, Joseph Fiennes and many more.

He has written over 700 business publications (see Glossaries at http://onesmartplace.com/resources/glossaries/) and is editor of Better Business Focus (see http://onesmartplace.com/resources/better-business-focus-magazine). His Blog, on a wide range of subjects can be found at: http://onesmartplace.com/blog/
Martin Pollins

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