Client Service Idea Book...Client Service Idea Book Guidance, Tips, Strategies, Tactics, ... • Go the extra mile on the current engagement • Increase the amount of client contact

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Client Service

Idea Book

Guidance, Tips, Strategies, Tactics, Real-Life Stories, and Research Data

For Driving Client Satisfaction, Retention

and New Revenue

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Table of Contents

Welcome to the Client Service Idea Book ................................................................................................................................... 5 How to Use the Idea Book .......................................................................................................................................................... 6 43 Steps to Gold-Plated Client Service. ...................................................................................................................................... 7 First, Sell Yourself. Sales Will Follow. ...................................................................................................................................... 10 Be a Hero, Not a Chump ........................................................................................................................................................... 12 Success Formula Propels Start-Up Accounting Firm through Recession ............................................................................... 14 Take the Passionate Accountant Quiz ...................................................................................................................................... 16 Five Questions to Ask Clients Today ........................................................................................................................................ 18 Great Client Service Starts with Great Clients ......................................................................................................................... 20 Client Service Culture ............................................................................................................................................................... 22 Where to Find New Clients? At Home ..................................................................................................................................... 23 How to Talk to Your Clients about Sales and Use Tax ............................................................................................................. 25 Networking Tips: 21 Ways to Be More Memorable .................................................................................................................. 27 What’s the ‘Secret Sauce’ for CPA Success? ............................................................................................................................. 29 CPAs’ Best Advice for Busy Season ........................................................................................................................................... 31 CPAs Need to Think about Another Kind of “Audit” for Their Tax Clients ............................................................................. 33 Busy Season Calls for More Facetime, Less Screentime .......................................................................................................... 35 Q&A with Michael David Schulman CPA/PFS ......................................................................................................................... 36 Three Things Every Client Needs from Their CPA Today ........................................................................................................ 38

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What To Do with the Client from Hell ...................................................................................................................................... 41 How to Boost Profits Up to 85%? ............................................................................................................................................. 44 How to Measure Client Satisfaction ......................................................................................................................................... 45 How Long Do You Keep a Client? ............................................................................................................................................. 47 Why the Widening Gap among Solos ....................................................................................................................................... 49 Where Are the New Clients? ..................................................................................................................................................... 53 The New Success Formula ........................................................................................................................................................ 56 Top 100 Firms ........................................................................................................................................................................... 58 25 Surefire Ways to Keep a Client for Life ................................................................................................................................ 61 36% of Clients Dissatisfied ....................................................................................................................................................... 64 One Firm’s New Game Plan ...................................................................................................................................................... 67 Women Say Their Financial Advisors Come Up Short ............................................................................................................ 69 Back to Basics with Client Service ............................................................................................................................................ 72 The 3 Big How-To’s for Client Satisfaction Surveys ................................................................................................................. 74 Five Ways to Shift from Cross-Selling to Cross-Serving Your Clients ..................................................................................... 76 Question: What’s Great Client Service Worth? ........................................................................................................................ 78 Do Your Clients Really Want to Talk to You? ........................................................................................................................... 79 Four Tough Client Service Problems ........................................................................................................................................ 80 Is Your Firm’s Corporate Culture Getting in the Way of Great Client Service? ...................................................................... 83 Can Your Clients Tell if You Are Faking It? .............................................................................................................................. 85 Client Service: The Only Thing That Matters Today ................................................................................................................ 87 15 Reasons to Dump a Client .................................................................................................................................................... 89 Eight Essentials for Measuring Client Service ......................................................................................................................... 91 Client-Centric CPA .................................................................................................................................................................... 93

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Eight Ways the Smallest Accounting Firms Compete and Win ............................................................................................... 95 The Big Mistake CPAs Make in Client Service ......................................................................................................................... 97 Five Secrets to Dealing with Unhappy Clients ......................................................................................................................... 99 The Secrets of Happy Clients? ................................................................................................................................................. 101 How Smart Phones Help CPAs Compete ............................................................................................................................... 103 Have You Fired a Client Lately? ............................................................................................................................................. 105 Survey Results: Clients From Hell .......................................................................................................................................... 108 Winning a New Client at “The Hot Chick Accounting Firm” ................................................................................................. 109 3 Reasons to Define Your Ideal Client ..................................................................................................................................... 111 The 10 Basic Ways to Boost Profits at an Accounting Firm .................................................................................................... 112 In War for Clients: Knowledge Alone Isn’t Enough ................................................................................................................ 115 Clients Make the Difference ..................................................................................................................................................... 116 What’s in Your Firm’s Stimulus Plan? ..................................................................................................................................... 118 Delighting Clients .................................................................................................................................................................... 120 About CPA Trendlines ............................................................................................................................................................. 121 About Bay Street Group .......................................................................................................................................................... 122 About Rick Telberg ................................................................................................................................................................. 123 Contact .................................................................................................................................................................................... 124

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Welcome to the Client Service Idea Book

Client service lays at the heart of everything a tax or accounting professional does. Indeed, without clients, there is no firm, no practice and a practitioner isn’t, in fact, practicing. Everything begins and ends with the client. But while many things in the professional practice are codified, organized, and structured, client service is often left to be managed ad hoc. Client service, too often, is addressed only when there’s a problem. But most practitioners understand that great client service leads to superior rates of client satisfaction and retention, which, in turn leads to stringer profits and revenue growth. With this “Idea Book,” we hope to stimulate the thinking of professionals who are seeking ways to improve their practices through improved client service. We’re sure you’ll find at least a few good ideas to put into use. And we’re grateful to the professionals who contributed so much of their experience and insight to make this book possible.

Rick Telberg President and CEO, Bay Street Group LLC

Editor and Publisher, CPA Trendlines

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How to Use the Idea Book

This book can be used for individual study or in group discussions. For individual study, readers are advised to find a quiet hour or two with a pen to read through the book, taking notes and jotting down ideas as they emerge. Then the ideas can be gathered and developed into action plans. For groups, it is suggested that the group discuss each idea as it surfaces, record the ideas on a flip chart or notebook and later sift the best ideas to develop into strategies.

– The Editors

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43 Steps to Gold-Plated Client Service.

Never lose a client again.

With client retention replacing the staffing shortage as the most troublesome issue facing CPA firms, it may be surprising that so few firms are taking a proactive approach to the problem. Certainly, many firms are stepping up client service levels, but Jerry Lopatka, managing principal at Dugan & Lopatka CPAs in Wheaton, Ill., is deploying a particularly systematic and disciplined program.

Jerry Lopatka, managing principal, Dugan & Lopatka

CPAs, Wheaton, Ill.

“A year ago we started a renewed focus on client retention and business development,” he says. At the firm, they call it “Biz R&D” for business retention and development.

Jerry sent us a 43-point list of tactics based on six broad strategies:

• Go the extra mile on the current engagement • Increase the amount of client contact • Build the business relationship • Build the personal relationship • Increase knowledge of client’s industry • Increase knowledge of client’s business

“We try,” he says, “but we can always do better. As I often tell our employees – our good clients are on our competitor’s radar screen.”

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Here’s the complete list…

Go the extra mile on the engagement

1. Conduct extra analysis

2. Benchmark client’s business against national database (BizBench software)

3. Apply analytical tools

4. Improve turnaround time, service

5. Improve quality of presentation of financial information (graphs, charts, etc.)

6. More documentation, explanation, accessibility

7. Use color in reports.

8. Hand deliver and go over deliverable in detail with them

Increase the amount of client contact

9. Visit at every opportunity

10. Schedule business meetings near mealtime

11. Invite to the firm’s offices

12. Meet with and get to know other officers in the client company

13. Get more of the firm’s people involved with client

Build the business relationship

14. Help client meet other contacts of ours (Use ACT software & colleagues)

15. Put on special seminars for the client’s staff

16. Volunteer to attend client’s internal meetings/board meetings

17. Offer free day of counseling on non-project matters

18. Send client useful articles

19. If possible, refer business to client

Build the personal relationship

20. Social activities

21. Remember personal, family anniversaries (take birthdays from ProFX – Systemizer form we send at end of year and put on ACT)

22. Obtain scarce theater or sports tickets

23. Provide home telephone number

24. Offer use of firm’s facilities for their personal

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or business uses

25. Find out precisely how the client is evaluated inside his/her company

26. Find out what he/she is unhappy with

27. Find out their personal views on life

Increase knowledge of client’s industry

28. Study industry magazine/newsletters thoroughly and regularly (Get subscriptions)

29. Attend industry meetings with the client

30. Conduct proprietary studies

31. Go to industry trade shows in Chicago

32. Learn all you can on their competitors

Increase knowledge of client’s business

33. Read all client’s brochures, financial reports, other public reports and news releases

34. Ask to see strategic plan

35. Volunteer to critique internal studies

36. Conduct a reverse seminar (Their people tell us about their company)

37. Look at web site regularly

38. Ask for organization chart

39. Ask who client deals with most

40. Ask about the client’s boss

41. Ask about power structure

42. Arrange to meet other executives

43. Spend time with client’s junior managers

So, How do you dazzle a client these days?

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First, Sell Yourself. Sales Will Follow.

Charles H. Green says: Put your customers’ interests first and watch your sales increase.

People want to buy from those they trust. The best way to be trusted by your customers is simply to be worthy of their trust. Be trustworthy. That means truth-telling and transparency. Above all, a relentless focus on the best interests of your customers will earn their trust. Pick one of these simple ideas:

• You get more sales by getting people what they want than by trying to sell them what you want.

• If you stop trying to control people, they’ll cooperate with you.

• If you listen to people first, they will then listen to you. • If you help people you increase your chances of making

sales. • If you put your customers’ interests ahead of your own,

you’ll end up better off than if you tried to achieve your own ends directly.

If you constantly serve your customers’ ends, you’ll gain a reputation for being trustworthy. When people trust you, they hassle you less about price, they refer you to others, you get fewer competitive and more sole-source bids, higher repeat rates and far more cooperation from your customers.

Successfully selling yourself on building a trust-based relationship is a win-win. Customers get their interests served better, and you get your interests served better. But this only happens when you don’t lead from your own self-interest.

That simple, internal sales job is not all that easy. But the

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very best salespeople in nearly all industries have managed to make that sale. They have convinced themselves that everyone, themselves included, is better off if their primary focus is serving their customers.

Put it another way: Make your own sales not a goal, but a byproduct, a byproduct of making customer satisfaction your primary goal.

Charles H. Green is the founder of Trusted Advisor Associates and a speaker and executive educator on the role of trust in professional services. He’s taught executive education programs at Kellogg and Columbia Business Schools. Author of Trust-Based Selling, and co-author of The Trusted Advisor, Charles has written for the Harvard Business Review, American Lawyer and the CPA Journal. He blogs at http://www.trustedadvisor.com/blog.

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Be a Hero, Not a Chump Troubled companies can leave collateral damage in their wake.

Don’t let your firm be one of the victims. by Rick Telberg

The economy may, indeed, be at fault for many of the latest business failures. But blaming the economy won’t turn around a company in trouble; recognizing the problems and taking swift action could. That’s where CPAs can help.

With over 40,000 business bankruptcies in 2008 and 2009 and little improvement expected this year, the message of turnaround specialist Katie S. Goodman couldn’t come at a better time.

One of the key opportunities facing CPAs today, according to Goodman, is to “truly recognize that certain clients are in financial distress and will not make it through the economic cycle.”

Goodman is managing partner of Atlanta-based Grisanti, Galef & Goldress, one of the oldest turnaround consulting firms in the United States. She is often called in to assume the role of the director of reorganization or the chief restructuring officer for companies with private equity funding, and she serves as an adviser to boards of directors and management teams.

She says CPAs are in a unique position to aid the troubled businesses, sometimes even before it becomes too late to save it. “Stepping back,” she says, “CPAs can see the issues in a business,” such as uncollectible accounts receivable, bloated inventories, stretched accounts

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payable and breaches in lending covenants.

“It’s an opportunity,” she says, “to truly add value.” CPAs can “talk to the business owners, find out what’s going on and offer advice and solutions.”

It’s especially important for the CPA to dig behind the numbers of financially distressed clients for two reasons in particular, she cites:

• Owners of financially distressed companies can be more likely to be producing fraudulent financial statements. To be sure, Goodman will be telling AICPA members, “as an industry we try to avoid the word ‘fraud’ — but the level of fabricated statements is high.” Goodman recalls several cases in which she’s been called in to untangle problems caused by audited companies seeking to defraud creditors. Of course, “an audit is not designed to detect fraud,” she says, “but the CPA should be aware of the heightened possibility of fraud in a distressed situation.”

• CPAs have another reason to get involved early. “If a CPA has a client who is in financial distress, or insolvent, it is unlikely that they will ever be paid for their work,” she says. “CPAs need to evaluate credit risk just like any other firm: Clients who do not pay are not good clients. It is astounding to see so many accountants on lists of unpaid creditors. They see the numbers, should be able to assess the situation and frequently don’t.”

So what should CPAs be doing about it? “As always,” Goodman says, “they should be stepping back from the

data and be good advisers to companies and company owners. In a ‘trusted adviser’ role CPAs are invaluable in guiding companies to success. Who else has regular access to financial data and can make that objective assessment?”

The economic situation could get worse before it gets better, according to Goodman. “We have a long way to go,” she says. The level of debt maturities from 2012 to 2014, which spring from the 2005 – 2007 financing spree, will cause “large, continued” financial problems for companies. “And this will be combined with maturities of CDOs [Collateralized debt obligations], a weak commercial real estate market and a residential real estate market that will take five or more years to recover,” she says.

But if advisers such as CPAs can give good advice, clients will, with a little luck, make it through the recession.

“Smart advisers,” she says, “look at the big picture.”

Copyright 2010 AICPA. Used by Permission

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Success Formula Propels Start-Up Accounting Firm through Recession

New approaches to old challenges. Source: Accounting Office Management & Administration Report via www.cpaleadership.com. To subscribe to AOM&AR, go to www.ioma.com.

Chicago-based CEB & Company LLC was formed in 2008 when Patrick O’Malley and William M. Kwit split off from their previous firm over differences regarding business and staff development. The firm now has two partners and nine employees. But O’Malley and Kwit couldn’t have chosen a tougher time to go out on their own — the beginning the Great Recession. How are they doing? O’Malley says says they’ve taken some new approaches to old challenges.

Keys to CEB’s success include:

• Training. The firm developed a significantly better staff-training program that emphasizes an open exchange of ideas and provides staff with high-level work opportunities. This approach has led to positive feedback from both clients and staff.

• Marketing. The firm is exploring new markets, including international work, new businesses started by people laid off by larger companies, and retirement plans. Regarding the retirement plan market, O’Malley feels that a smaller firm offers lower fees and other advantages over larger firms that handle retirement plans as an add-on for midsize clients. To develop this business, CEB

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maintains relationships with larger CPA firms and plan administrators.

• Service. The firm emphasizes the strength of its client-service teams, particularly partner-level service that isn’t available from larger firms.

• Recruiting. Recruiting is a challenge because larger CPA firms generally don’t lay off their best talent. But the firm has been able to find good people coming out of school now that bigger firms are hiring fewer recent graduates.

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Take the Passionate Accountant Quiz Can your clients tell if you are faking it?

Do you seek out opportunities to learn new things that will help your clients overcome their most difficult challenges?

Selling value-creation advisory services is truly a slam dunk with most modern business owners, according to Edi Osborne of MentorPlus. The bad news is that, although most CPAs would say they are their clients’ most trusted advisor, few could answer the following questions in the affirmative.

Passionate accountant quiz: 1. Can you name your clients’ biggest competitors and outline their key differentiators?

2. Have you ever accompanied your clients to one of their industry conferences?

3. Have you ever signed up for a business seminar for you and your clients to attend together?

4. Do you routinely read your clients’ trade publications?

5. Do you routinely read business publications, such as Inc., Fast Company, or Fortune?

6. Do you monitor the activities of your clients and their industry with Google Alerts, and send them a note or pick up the phone to acknowledge the press they have received?

7. Have you ever come across an article that speaks to your clients’ issues and sent it to them with a personal

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note?

8. Have you ever sent them a personal note? Maybe a birthday card? Maybe an anniversary card of the day they became a client?

9. Have you ever conducted an employee exit interview on behalf of your client?

10. Do you have a copy of your client’s strategic plan? Are you included in meetings where the client discusses overall business strategy?

Give yourself 10 points for each of the questions to which you answered yes. If your total score adds up to 80 to 100 points, congratulations! You truly understand what it means to walk in your clients’ shoes and can be passionate about their success.

If you are in the 50- to 80-point range, you might want to consider adding a few of the ideas above to your annual client service plan.

If you are below 50 points, you cannot possibly relate to your clients’ business issues enough to be passionately involved in their success. I suggest you contact Edi immediately at .

via AccountingWeb

Posted February 25, 2010 Related Topics: change, client service, leaders, management, practice development, strategy

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Five Questions to Ask Clients Today Make checking a client’s pulse part of your everyday habit. by Rick Telberg

Busy season may be hectic and the hours may be long, but if you’re not making time to get to know your clients better, then you’re missing an opportunity that may not come again for another year. By then, a competitor may have beaten you to the punch.

Many accountants, auditors and tax professionals don’t realize how much busy season is, in fact, “opportunity season.” You have your clients’ undivided attention. They should have yours.

Beyond the routine tax preparation and tax planning, beyond the reconciliations and check marking, you need to be using client face-time to explore their greater needs and goals and your firm’s performance and opportunities.

It’s not hard once you know where to start, according to Scott H. Cytron, a 20-year veteran of marketing and communications in the accounting profession.

“Your clients may seem happy,” Cytron warns, “but how much do you really know about their satisfaction with your firm and services? Have you asked them?” Mostly, accountants don’t ask, and certainly not in a systematic way. I call it “Don’t ask, don’t know.”

The reason? “Mainly,” Cytron says, “accountants just don’t really know how to ask the question. They’re afraid they’ll hear bad news. And then what would they do? But, honestly, is that any way to run a business? There should

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be no surprises.”

Take the opportunity to do more than just ask “How are we doing?” Ask how the client is doing. Find out what the client wants from their life and business. See if there are ways you can help, professionally or just as a friend.

Cytron suggests five questions to get started:

1. How can we help build your business? 2. How do our firm’s solutions help your efficiency

and your service to your own customers or clients? 3. How can we serve you more effectively? 4. What’s changed in your business over the last 12

months? (You should know most of this answer already if you’ve done your homework.)

5. We always appreciate referrals. What kinds of referrals are you looking for?

They key is to make checking a client’s pulse part of your everyday habit. When you ask “Hi. How are you?” you should mean it. And be prepared to ask for more.

On another level, the firm should be checking client-satisfaction levels at least annually through methodical surveys. Cytron says the surveying doesn’t always need to be completely scientific, and, in fact, rarely is. “But you can get a pretty good idea of where you stand with a just a few responses,” he says. ”And then you’ll know what you need to do next.” Which could range from damage control on a particular client relationship to more in-depth research.

But accountants need to break the habit of answering e-

mail with e-mail, text with text, voicemail with voicemail. Every client query is an opportunity for an old-fashioned conversation. Try the phone. Get lunch.

Who knows what could happen?

Copyright 2010 AICPA. Used by Permission

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Great Client Service Starts with Great Clients

Edi Osborne of MentorPlus writes:

“I love all the ideas the group generated. I have only one thing to add. All the questions are more easily answered when you are only dealing with ideal clients.”

And she provides this checklist to help choose the right clients in the first place:

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Client Service Culture Kevin Phillips, Director of Consulting Services, ProHorizons Network Inc., writes:

There are a lot of great ideas here. The only problem is that lots of great ideas are impossible to execute.

Developing excellence in client service requires a change in organizational culture. And culture change is very difficult.

As valuable as a brainstorming session might be in shaking loose new ideas, of greater value is landing on identifying one or two behaviors that will move the entire organization in a new direction.

If the firm is profitable, it is probably doing a lot of things right. If the firm is human, there is probable one or two adjustments one could make to make it even more profitable. The trick is to identify them.

Before brainstorming solutions, it might be helpful to invest some energy in really understanding the firm’s culture.

To get at culture ask these questions:

• What behaviors do we repeat over and over again out of habit that limits the quality of our customer service?

• In what ways to do each staff member feel constrained, limited or shut down? Where do these experiences overlap?

• Who sets the cultural norm around here? And what benefit does the norm-setter gain at the expense of better customer service?

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Where to Find New Clients? At Home Census data shows 25% increase in home-based entrepreneurs.

The number of people who worked at home increased by nearly 2 million, from about 9.5 million in 1999 to about 11.3 million in 2005, according to new data released by the U.S. Census Bureau. Nearly half of these home workers had college degrees and nearly half of them earned $75,000 a year or more.

These figures come from Home-Based Workers in the United States: 1999-2005, a series of tables that describe the type of employment, occupations and characteristics of home-based workers in the United States. The tables examine the total workforce and compare those who work at home with those who do not. The data are produced from a supplement to the Survey of Income and Program Participation.

“An examination of the data shows an increasing percentage of the workforce is spending at least some time working from home,” said Alison Fields, chief of the

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Census Bureau’s Journey to Work and Migration Statistics Branch. “This survey provides a better picture of the attributes of these people, as well as which professions and occupations allow them to work at home.”

Home-based workers made up 8 percent of the total U.S. workforce in 2005, an increase from 7 percent in 1999. Among those who worked at home in 2005, about 8.1 million did so exclusively, an increase from 6.7 million in 1999.

Examining those who worked at home in 2005 by industry, the largest percentage worked in professional and related services (32 percent), followed by business and repair services (12 percent) and finance, insurance and real estate (10 percent).

The most popular occupations among those who reported working at home were professional (25 percent), executive, administrative and managerial (22 percent) and sales (18 percent).

The median monthly earnings of workers who worked at home were about $2,400 in 2005; the median annual family income for these workers was approximately $68,000.

High-paying jobs were more likely to involve working at home for some or all of the work time. In 2005, 46 percent of people who said they worked at home some or all of the time earned at least $75,000 per year, compared with 34 percent of non-home workers who made at least that much. Those who worked both at home

and in an office had the highest percentage of high-paying jobs — about 54 percent of whom made $75,000 or more annually in 2005.

Along with more money came longer hours. About 11 percent of those who worked at home for some or all of their workweek reported working 11 or more hours in a typical day in 2005. Only about 7 percent of workers who worked outside the home reported doing so.

Despite the long hours, there seemed to be more flexibility for people who worked at home. In 2005, about 23 percent of home-based workers reported their weekly work hours varied, compared with only 10 percent of those who worked outside the home.

Characteristics of home-based workers:

• 51 percent were female. • About 4 percent age 15-24; nearly 18 percent were 25-

34; 26 percent were 35-44; 26 percent were 45-54; 18 percent were 55-64 and nearly 9 percent were 65 and older.

• White non-Hispanics about 82 percent of this workforce; blacks represent about 6 percent, Asians nearly 4 percent, and all other races about 3 percent. Hispanics, who could be of any race, about 6 percent.

• About 47 percent of those who work at home had at least a bachelor’s degree; almost 32 percent at least some college; about 17 percent a high school diploma; and about 5 percent less than a high school diploma.

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How to Talk to Your Clients about Sales and Use Tax 5-step action plan for addressing clients’ sales and use tax needs via SpeedTax

CPA firms are well-positioned to take the lead in helping guide their clients through the complicated, time-consuming, and resource-intensive world of sales tax compliance and management, according to a new, free guide authored by Geni Whitehouse, CPA.CITP.

The just-published “How to Talk to Your Clients about Sales and Use Tax” asks CPAs to put themselves in their clients’ shoes to help them address the challenge of complying with sales tax rules in an environment of heightened audit risk.

Underwritten by SpeedTax, a Software-as-a-Service sales tax solution provider, the guide outlines 5 steps that firms should take to begin addressing their clients’ sales and use tax needs.

“CPA firms, now more than ever, have an opportunity to be proactive in helping their clients minimize audit risk, reduce overhead and streamline processes associated with state sales tax compliance,” said Gregory Rosser, CPA, and Executive Director of State & Local Tax at Grant Thornton. “Geni’s new guide helps firms walk through the steps of determining first the scope of services they will offer, and secondly how to promote them to current and potential clients. This is timely advice for firms that have decided to take action.”

“Sales tax is an increasingly important source of revenue

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for states experiencing massive revenue shortfalls, so now is the time for CPA firms to start talking to their clients about their increased audit exposure,” said Whitehouse. “Many sales tax-related tasks are too complicated and time-consuming for the average business owner – and yet they have no choice but to stay in compliance. I wrote this guide in hopes that more firms would start having meaningful discussions with their clients. Clear communication will ultimately help clients address their sales tax headaches, while helping firms deliver on their promise to be a ‘trusted advisor’.”

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Networking Tips: 21 Ways to Be More Memorable

Accountants are not necessarily known for their outgoing personalities. So, many CPA firms have been launching soft skills training to help their professionals meet people, network better, and, hopefully, land more business.

Trainer and facilitator Arnold Sanow, MBA, CSP, reminds us that Dale Carnegie once won a major sale by being a great conversationalist — without saying more than a few words.

While sitting at dinner he started talking with a gentleman at his table. The man at his table spoke for four hours while Dale Carnegie spoke for only about two minutes. After four hours the man stated to everyone, “Dale Carnegie is the best conversationalist I’ve ever met.” By being an active listener Dale Carnegie was not only portrayed as a great conversationalist, but the man instantly took a liking to Dale. Since Dale was interested in him he was interested in Dale.

You too can make yourself memorable to everyone you meet. By following the guidelines below, you’ll not only be more memorable, but you’ll get more cooperation with co-workers, get more clients, keep them coming back and get enthusiastic referrals.

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Pick one, and try it today:

• Ask them for their opinions. • Be able to speak on a variety of subjects. Keep abreast

of current events. • Be enthusiastic about things and life to others. People

like being around people in good spirits. They will gravitate to those who are upbeat, positive and cheerful.

• Be interested, not just interesting. • Be tolerant of people’s beliefs if they are different from

yours. • Be yourself. Enjoy the conversation. • Compliment others about what they are wearing, doing,

or saying, but be sincere. Appreciate to be Appreciated.

• Display your sense of humor. People remember humor six times longer than regular conversation plus they will gravitate to you.

• Don’t interrupt. Sensitivity, rapport and commitment are all killed when you interrupt others.

• Give them more than they expect. In other words, under-promise and over-deliver.

• Have positive body language. Use the SOFTEN technique to become more approachable, likeable and trustworthy. S=smile, O=open posture, F=forward lean, T=stay out of their territory, E=eye contact, N=nod to show understanding.

• Introduce yourself to others. No matter where you are play the host. Be the first to say hello.

• Invite people to join you for lunch, dinner and other social events.

• Listen, Listen, Listen. You not only become more likeable, but you really start to understand the

other person’s wants, needs and desires. • Make an extra effort to remember people’s names. As

Dale Carnegie says, “the sweetest sound to a person is their name.”

• Make everyone feel important by paying full attention to him or her. Make them feel like they are the only person in the room.

• Show curiosity and interest in others. • Show others that you are enjoying your conversation

with them. Don’t yawn, look bored or have a case of roving eyes.

• Speak concisely. Be able to tell people what you do in a few short sentences.

• Speak their language. Talk in terms of their communication style. For example, if someone just wants the facts, don’t go into a lot of stories and anecdotes.

• Use eye contact and smile upon meeting someone. The best way to build rapport is through eye contact.

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What’s the ‘Secret Sauce’ for CPA Success? With client retention the top issue for firms, we go looking for answers. by Rick Telberg

If you want some real answers for how to avoid losing clients, just start asking CPAs how they’ve managed to pick up new clients.

That’s exactly what I’ve been doing lately. Some of the answers are startling. All of them are instructional. Most of the time, accountants can blame the CPA that their new clients were abandoned.

Mirella Martorano, an independent accountant and tax practitioner near Rochester, N.Y., puts it succinctly, “You will lose a client if you charge too much, do not answer their phone calls, do not get their work done on time and do not give them the personal service that they deserve.”

“You may lose a client if you make a mistake,” she adds. “But if you are honest about it and fix it, you may keep them if all the other things are in line.”

I like Howard Cox’s take on it, too. “There are all kinds of ways to lose a client,” says Cox, director of business consulting at Somerset CPAs in Indianapolis. “However, my experience is that when I pick up a new client, the prior CPA repeatedly made one or more” of the following mistakes:

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1. Failure to deliver the product, tax or accounting, in a timely manner.

2. Failure to respond to routine inquiries, e-mails or voice-mails, in a timely manner.

3. Failure to understand that the key to profitability is to maximize the lifetime value of a client and not in trying to squeeze the most fees out of an individual transaction.

Joshua Nowack, who calls himself “the chief numbers guy” at his own Nowack Strategic Business Advisory & CPA in the Los Angeles area, is still relatively new as his own practice owner.

But he says he’s been building his new business “by doing three simple things.”

1. Do what I say I’m going to do.

2. Charge what I say I’m going to charge.

3. Ensure that my client understands the value exchanged.

I think most people naturally understand the first and second, but Nowack calls No. 3 “the secret sauce.”

He tells the story of winning a client who had told him, “I just don't understand what that guy did to earn $700.” In fact, Nowack is not much cheaper. He may even be more expensive than the accountant he replaced.

But, he explains, “The point is when you charge for a

service, if a client doesn’t perceive the value, there is no reason to come back.” If the incumbent practitioner did nothing to enhance the experience or the relationship, then any kind of fee can feel unjustified. And, that’s “all that’s required to send someone shopping.”

The fact is switching costs are low for most clients, with the exception of audit clients. But overall, the answer seems to come down to setting expectations and then exceeding them. That’s “secret sauce.” Not much of a “secret,” really.

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CPAs’ Best Advice for Busy Season Busy season comes amidst the worst economic crash in a generation. How do CPAs handle it?

Actually, not too badly. At least not yet.

True, the economy remains the biggest worry, and collections could become an issue. But CPAs are focusing like lasers on their clients. Here’s a pictograph of the verbatim answers we’ve been getting to our Busy Season.

It shows clearly that CPAs remain more focused on service than cuts – although those could come eventually.

Here the sampling of the verbatim comments that went into the pictograph.

[SURVEY QUESTION: What's your best advice for managing in these tough times? What are you doing at your firm or company?]

• Expand IT and software consulting. Take lots of QuickBooks set-up/fix-up gigs.

• Choosing not to participate in the bad economy. • Nothing different. I try to work as hard as possible to

deliver the best service to all clients at all times. My attitude is always-if I take care of my clients

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priorities first everything will work out fine for me. • Think positive • Get clients to pre-pay or put a deposit down on all tax

work. • Trying to schedule better • Keep an eye on your cost. Work with clients on

payment, but do not allow them to owe you for an extended time.

• cut expenses • Cash and carry is king this year–both tax and

audit/review work. Some fall out on personal tax clients going for “cheaper” solutions, but not troublesome…… yet!

• Delaying all office upgrades • Watch staffing and expenses. cutting overhead costs

and tracking staff metrics closely • Stay in front of clients. Make sure they are aware of all

that you do for them. • CPAs are not an expense but a value to our clients. We

provide returns on their investment in our services.

• Reducing services to clients that appear to be in financial difficulty.

• I have asked and received retainers on consulting projects for turnaround projects.

• Trying to collect up front • Trying to do a better job explaining the tax law changes

and the benefits to the clients • Stay lean and mean and try and hold fees in check to

help out your clients – it will pay off in the long run.

• If revenues are to decrease, the collection is even more critical than normal. We ask that payment accompany the executed e-file authorization

forms; paper returns are all COD. • Stay focused. Set priorities and follow through. • Not increasing fees • Tel clients to have faith and be patient • Make sure you collect your fees and be prepared to

offer concessions to retain long term clients. That’s what we’re doing.

• Try and give long term clients a discount on returns and any client over 60 days last yr request payment upon pickup and some clients are required to put down retainers before we start. Staff has been prepared for limited salary increases to weather the financial storm.

• Strive to maintain a positive mental attitude, remain focused, write down your plan for the upcoming week, and handle client service based on firm/client priorities.

• Service – service – service. Do more for what you are getting paid for. Keep contact with the client. Remind them why they need you.

• Proactive client contact. • Stay focused on billing. Bill more often. Be ready to ask

for a retainer. Stay positive.

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CPAs Need to Think about Another Kind of “Audit” for Their Tax Clients

Especially in this economic climate, when clients need more help than ever, CPAs have an obligation to break out of their compliance-only mindset to help clients plan for their futures.

Richard L. Engebretson, vice president at WealthStar Alliance, a service of Aviva USA, suggests CPAs are overlooking huge opportunities if they’re not helping clients with retirement planning.

Engebretson, a pivotal figure in the creation of the Trusted Advisor network of PFP CPAs, is now applying his ideas to a new project, WealthStar Alliance, for Aviva USA, the big insurance company. We had a few questions for Engebretson, and, predictably, Engebretson had some pithy answers:

1. Short-term, what should CPAs be doing in this economic environment to best help their PFP clients?

CPAs should be managing the investment behavior of their PFP clients and helping them remain focused on their long-term objectives and goals. In addition, CPAs should be conducting “retirement audits” for all of their PFP clients near and in retirement to insure the clients’ assets will have the propensity to generate the necessary income to substantially sustain their lifestyle and needs during their life expectancy.

2. Long-term, what’s the outlook for CPA PFP services?

The outlook for CPAs in the PFP arena is very promising. CPAs have the unique advantage of helping their clients create tax optimized comprehensive financial plans. No

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other financial services professional can effectively provide tax advice in combination with the client’s overall wealth management needs like a CPA can. This reality will serve the CPA well in a new era of potential higher taxes for America’s affluent citizens.

3. And how can CPAs best seize those future opportunities?

CPAs need to proactively assume the position of being their client’s financial guardian. CPAs need to go beyond the basic threshold of pure compliance work and reach out to their clients in these troubled times and take the responsibility of looking at their comprehensive financial picture and guiding them to their desired financial end.

4. What’s the biggest misconception CPAs may have about adopting or expanding their involvement in PFP services?

Many CPAs consider it a conflict of interest to help their clients in the area of wealth management and significantly underestimate the privileged opportunity available to help their clients. The vast majority of their clients need and want their help. Studies have shown that clients want their CPA to serve as their central planner who will coordinate their financial life and guide them into the future.

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Busy Season Calls for More Facetime, Less Screentime

Accountants too often fall into the trap of relying too heavily on their tax preparation software. “They look at the input screen and think it will prompt them for questions to ask, and they’ll get their clients all the deductions and credits available. That’s not always the case,” according to Mike Solomon, a partner in Amper, Politziner & Mattia’s Tax Department.

“For example, if you don’t have a child’s date of birth in the tax software it won’t necessarily tell you that the Kiddie Tax may apply, since up to 2006 it only applied to children 14 and under.”

“There are so many interrelationships that you need to understand how the rules operate and not just rely on the software.”.

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Q&A with Michael David Schulman CPA/PFS The 3 Worst Mistakes a Client Could Make

And how to save them from themselves.

CPAs interested in providing personal financial planning don’t need to do it all. The secret to success in PFP is finding the right partners, according to Michael David Schulman, CPA/PFS, third generation owner of a CPA firm bearing his name in Central Valley, N.Y., and New York City.

In these market conditions, what can CPAs do to best help their clients?

CPAs should work with their clients to prevent the clients from making quick and irrational decisions that will have unfavorable consequences.

For example:

– liquidating their portfolios, – making withdrawals from qualified accounts resulting in income taxes and possible withdrawal penalties, or – not paying life insurance premiums resulting in cancellation of policies that might be difficult to replace.

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They should review their clients’ risk tolerances and work with the clients in keeping a properly diversified portfolio for the long-term.

Long-term, what’s the outlook for CPA PFP services?

The outlook for CPA PFP services is excellent.Â Many clients who thought they could manage their investments and finances on their own are having second thoughts during these tough economic times.Â Their CPA financial planner is the ideal person to work with.

And how can CPAs best seize those future opportunities?

CPAs interested in providing PFP services should be:

1. marketing to their clients now while their clients are uncomfortable with their finances. As times improve, many clients will revert to thinking that they can go it alone, and

2. looking to increase their professional skills to be in position to capitalize these opportunities.

What’s the biggest misconception CPAs may have about adopting or expanding their involvement in PFP services?

I think the biggest misconception is that the CPAs must get licensed and do all of the work themselves. One option is to partner with a PFP firm. (Although someone in the firm will have to be licensed if the objective is to share commissions.) Another option is to go the fee-only route.

What else should we be asking?

How does a CPA’s approach differ with the age of the client? After all, older clients who lost 35% of their portfolios are now in serious cash flow danger whereas a younger investor can “ride it out.”

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Three Things Every Client Needs from Their CPA Today And the four misconceptions holding CPAs back. by Rick Telberg

CPAs face a rare opportunity for valuable face-time with clients who may be feeling unsettled – if not completely up-ended – by the sputtering economy and stock-market crash.

Never in memory have clients needed accountants more. Clearly, we are in the middle of the worst recession in decades. It’s not your father’s Great Depression, but it’s as close as we’ve ever come. At Rochdale Investment Management, which partners with CPA firms to deliver financial services, they are calling it “the Great Recession.”

The question is: What can CPAs do about it? The answer, from Rochdale CEO Garrett D’Alessandro, is: Plenty.

D’Alessandro recommends three steps every CPA with investment clients needs to take today:

Action Step 1: CPAs should be urging clients that their remaining holdings be re-examined. Are the companies still good investments? Have ratings on their bonds held up? Even if the CPA doesn’t have the credentials to handle the review himself, the client needs to get it done.

Action Step 2: CPAs need to have a heart-to-heart discussion with clients to re-calibrate their risk tolerance in light of “the new realization of the declines in each clients investment wealth,” according to D’Alessandro.

Action Step 3: CPAs need to review the time horizon and the cash flow needs that each client expects to take from the portfolio. Then their portfolios need to be revised to reflect the new

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uncertainty of this new economic phase. Each client should be presented with three scenarios: a low risk, a moderate and a growth scenario, so they can see which best fits their goals and needs given the new high-volatility environment.

“I fundamentally believe that CPAs have a wide open opportunity to bring their accounting and business experience into a combined service for clients,” D’Alessandro says. Many clients want and need to have a portfolio management service integrated with their tax, estate and other financial planning needs.

“The trend is clearly in the CPA’s favor,” he says. “As more clients understand that CPAs can provide this type of service, the early adopters will win new clients seeking one-source client relationship management.”

To seize these new opportunities in personal financial services, D’Alessandro says “CPAs should partner up, rather than try to develop investment management services in-house.” To be sure, Rochdale’s business model for CPAs isn’t the only one. And, having chosen to partner with a money manager, Rochdale is one of several firms in the field.

Still, too many CPAs suffer under misconceptions that prevent them from jumping into PFP.

Misconception 1: CPAs are unnecessarily worried that they will be held responsible for the investment manager’s performance, thus jeopardizing a client relationship.

D’Alessandro counters simply, “I have been doing this for 22 years and I have not had a single experience where the client held the CPA responsible for the money manager’s performance.”

Misconception 2: CPAs believe they need to become an investment expert to deliver money management services. “The client knows full well the role and responsibility of the CPA and of the money manager,” D’Alessandro says. “The CPA should never resist entering into the financial planning and advisory business because they feel they don’t have the specific technical skills.”

Misconception 3: CPAs fret they won’t have enough time to build the business. “The money manager handles all aspects including reporting, client meeting preparation,” according to D’Alessandro.

And, Misconception 4: CPAs may feel less than fully competitive providing services outside their training and comfort zone. But, D’Alessandro says “being in the business of working with a client to assist them with their money management needs requires only that the client like and trust the CPA and that the CPA has good listening skills.”

So the question remains: Why, so many years into the evolution of the CPA profession, have so few accountants jumped into the financial planning business? Â After all, CPAs are at the core of a client’s financial life and a natural fit.

CPAs will say they’re busy enough with their regular business, and they just don’t have the time. But the same

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firms also complain that they feel competitively out-paced by other firms.

To thrive, CPAs and their firms need to reinvest some portion of their time and assets into developing new and additional services for clients.

But then, the biggest lesson from this recession may be all about smart investing. Can you think of a better investment than yourself?

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What To Do with the Client from Hell CPAs share their war stories and their winning strategies. by Rick Telberg

Almost every accountant has a story of a client who is more than just a little difficult. Some 93 percent of public accountants have at least “a few” clients they would like to fire. Furthermore, nine in 10 accountants have terminated a client and many have done so at least once in the last year.

But the tough part is actually finding the strength and the right technique to sever such dysfunctional relationships. Some readers wanted more practical solutions. Fortunately, other readers wrote in with some great ideas.

I heard from a solo practicing CPA in California, who asked to remain unnamed. He can’t say enough about how good it feels to get rid of that problem client. “Do it – it’s not worth all the worry and abuse to your health.”

Another accountant, who doesn’t want his name used, told me, “You will be less stressed, have more free time to devote to your other clients and your employees and colleagues will thank you for it.”

The California soloist recalls “a foul-mouthed individual who could do no wrong. He was constantly hiring and firing his personnel and then talked trash about them after they were gone. He spoke similarly of his customers. I terminated this client after he informed me that he was going to record fictitious transactions into his accounting records for the purpose of obtaining a bank loan. By the way, it was my largest client and the loss in revenue is killing me - but at least I have some peace and can sleep at night. I have others that I would like to terminate but

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thankfully they are not telling me of their plans to commit fraud.”

And then there’s Frank Monetti in Toms River, N.J., who recommends: “Review and grade clients at least annually, and fire clients that are not worth the hassle. It will save you time, money and aggravation in the long run.”

His client from hell: “I inherited a client who bought a medical spa from a previous client. At the first meeting, I was â€˜jokingly’ asked how to avoid reporting sales tax. The records were never complete, and they would not provide a copy of the LLC operating agreement. During my final conversation with one owner, I decided to fire the client because I found (after some questioning) that another owner had been incarcerated.”

Evelyn Edwards, a CPA in Buda, Texas, suggests: “Set your boundaries and stick to them.”

Edwards’ client from hell: “He questioned what I did on his return. When he didn’t like the outcome, he insisted I do more work on it. I took numbers from a prior year and prepared the return. He was still upset, he changed the numbers again. That’s when I fired him.”

Phil Golding is retired in Weathersfield, Vt., but his best advice is “careful screening to begin with.” Call the predecessor accountant and “get the full story first,” he says. Every firm and every practitioner needs a careful screening process.

Oh, and by the way, in classifying the various breeds of problem client, Golding adds one to the list – “The Liar.”

I covered four kinds of problematic client:

- The bargainer: Wants to negotiate price on everything. And then they question every detail on the invoice.

- The needy: Constantly makes new demands, and then drowns you in e-mail, phone calls and office visits. And it doesn’t stop on evenings or weekends.

- The whiner: This client is a chronic complainer and may even get aggressive or abusive.

- The unreliable: This client is always late to meetings, cancels meetings at the last minute or even fails to show up.

But Golding’s “Liar” is the kind you “can’t depend on for any information being accurate. He has not even paid the former accountant his final fees or, in other words, stiffed them.”

There’s a mid-level staffer at a small public accounting firm who didn’t want me to use his (or her) name.

But besides, “The Liar,” this reader says I neglected to mention three more breeds of problem client. “You forgot a few,” this reader says, itemizing:

- The aloof: Slow responding to requests for information. Needs constant nagging. Often doesn’t return phone calls.

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- The bad risk: You just have a feeling that something is going to blow up. An IRS audit. A fraud. A lawsuit.

- The abusive: Speaks for itself.

For sure, problem clients seem to come in all breeds.

Gina D’Orazio in Littleton, N.H., remembers her client from hell vividly. “They were a married couple who were managing innkeepers at a local inn. They micromanaged me when I was at the inn. They would tell me they could do my bookkeeping job better than me and then make countless errors that I would need to fix. They would want me to teach them basic bookkeeping and then tell me in the same breath, â€˜Tell me how to do this but don’t tell me any accounting concepts.’ They would lose quarterly tax-return documents that would turn up 30-plus days after the filing date.”

“Regardless of how much we can use the revenue from any and all clients it sometimes is not worth the headache,” says D’Orazio.

“If you know you have done your best,” D’Orazio said, “and the client really is from hell then the best advice I can give is to provide 30-days notice for them to find alternative assistance and get the timeframe of completion of work in writing. Have everything in writing so there is no future â€˜he-said/she-said’.”

One anonymous sole practitioner may have the best advice of all: “The best way to avoid firing a client is to never hire them. You avoid these clients by removing all mutual mystification at the outset. Explain to them in no

uncertain terms what is expected. If they have a problem, don’t work with them.”

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How to Boost Profits Up to 85%? Hint: The Answer Is Closer than You Think by Jean Caragher and Rick Telberg

Looking specifically at the accounting profession, a five percent improvement in client retention can improve profits by 25 to 85 percent.

This kind of revenue growth adds directly to your bottom line.

What more compelling argument do you need to demonstrate the benefit of improving your firm’s ability to retain your clients?

Accountants already have a head start in client satisfaction. Accountants rank highest among all of the professions.

Further, if we add together those who are very satisfied and those who are somewhat satisfied, studies indicate that over 90 percent of accounting clients are satisfied with the service they receive.

Regardless of the level of client satisfaction in accounting clients, there are clear gaps between the thinking of accountants and their clients.

CPAs cannot afford to take the data as a justification for complacency.

No CPA firm can afford to take clients for granted – ever.

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How to Measure Client Satisfaction Almost any system will do. But you need a system. by Jean Caragher Capstone Marketing

Seven Keys to Successful CPA Firm Management research indicates that the majority of CPA firms have no client-satisfaction program at all. While any system will do, you need a system in place whether it includes face-to-face interviews, written surveys, online surveys or focus groups.

Burr & Forman LLP a law firm with offices in five southeastern states averages two client interviews per month with the aim of meeting with their Top 50 clients once every two years.

The goals of the interviews are:

• Feedback on performance and a service review. • Uncover opportunities to cross-sell. • Uncover service problems. • Gain competitive intelligence.

What are the best client interview questions? According to Laura Meherg, former Burr & Forman LLP marketing director, currently a consultant with Wicker Park Group, the best questions and talking points are:

• What do you like about working with our firm? • What should we do differently? • Tell me about your most successful experiences

with outside counsel/other service providers.

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Prior to launching a client-interview system for your firm, be sure you have support from the top and commitment to act.

Remember: If you ask clients for their thoughts and do not act on them, you will have been better off not asking in the first place.

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How Long Do You Keep a Client? (Warning: The Client's Answer May Differ) By Jean Caragher and Rick Telberg

New studies conducted by The Bay Street Group and the Capstone Marketing Group illuminate several very significant gaps between the opinions of clients and their CPAs. These studies allow us to begin to understand what our clients really think.

We used a combination of survey responses and interviews in our research. We surveyed both clients and CPAs. Our client respondents are high-ranking decision makers from companies that are the bread and butter of every CPA firm.

• 89 percent of the clients surveyed are senior executives

• 51 percent of them carry the title of CFO or Comptroller

• Another 22 percent are owners or CEOs

• Another 17% identify themselves as senior management.

All client respondents come from good-sized companies. Sixty percent of them work in companies employing more than 100 people. When we slice and dice the data by company size, the findings are consistent. This means that our client respondents essentially know what they

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want from their CPA firms. Whether the companies are big or small, they know a good accounting service when they see it.

They are a tough, knowledgeable, understanding and informed audience. They are the professionals. They are the kind of clients we want for our business.

THE TENURE GAP

We asked clients “How long has your CPA firm worked for you?” And, we asked CPAs “How long have you worked with your clients?”

Most of the clients interviewed say they have worked with their current CPA firm for one to five years. However, when asked the reciprocal question, CPAs in Public Accounting said they worked with their clients on average more than ten years.

This gap appears significant. However, it might not be as big a gap as it seems. This comparison might tell us more about personnel turnover rates in client companies than about a misunderstanding between CPAs and their clients.

If the average tenure of a corporate CFO, especially in the largest companies, is three to five years, the data might point to service disruptions when personnel changes occur in the client companies.

Brief tenure on the client side of the relationship makes it incumbent upon the CPA firm to nurture multiple relationships within client companies.

Building and maintaining those relationships is critical to ensure that strong enough relationships in the client company will remain despite personnel changes. These relationships will be necessary to keep the client company with your firm.

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Why the Widening Gap among Solos There’s a buzz about a deepening divide between high performing firms and the rest of the profession — interestingly: especially among soloists.

Some solo practitioners are having a terrific season, others not. There’s no in-between. We’ve been wondering about the causes. And practitioners have been answering.

It has a lot to do with client service.

– Rick Telberg

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They probably do not charge enough. Keep the fees up and the clients will keep coming.

– Joseph J. Gormley CPA

You are right. It is a real busy season for me. Not only do I have to do the workload I had planned to do, but I have to also now do relatives and close friends of existing clients. The hand full of clients I lost were either situation I could do nothing about (death, no longer required to file, marriage where two clients become one, etc.), or the low paying ones which can do just as well without.

– Dan

Rick, I’m having a Great year! I had nearly a 20% jump in revenue in Mar. over the last 3 yrs. with only a 3% increase of volume. With that said, my wife does entry and call backs and my 23yr old son assembles.

Mike Burns Sent from my iPad

Is it technology–those who are enthusiastic about paperless offices, efiling, client portals on websites etc–are they doing better? What is the correlation(s)?

– Rita Schooley

Quality of the service… I am growing every year and we are a “soloist”. I have clients all over the world. Many clients keep coming back because we keep current with

the new laws. And because we are friendly and easy to work with. Many because I love to try to teach all my clients — to the level of their ability to understand the tax laws.

– F. Anne Turschmann, EA

Some were harder hit by client loss due to the failures in the marketplace.

– Carol King

First, I really appreciate the perspective this question brings and how you continue to find ways to make a recurring topic interesting. Thanks for that!

Now, A few things I think cause “The Great Divide are”:

1. Many firms, particularly very small firms, don’t actively manage tax season and let it manage them. Few appear to take proactive measures like:

a. Suggest pre-assigned appointment/drop off targets for each specific client before season starts.

b. Follow up regularly (and repeatedly, if necessary) by phone and/or email with clients not meeting those targets or clients not responding at all to try to reschedule, etc. My experience is that client inertia often leads to client losses and that if prompted, they return because they feel important to the firm.

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c. Use college interns effectively—too many firms “make the perfect the enemy of the good” when using less experienced staff by being unwilling to teach/develop staff. It’s especially helpful to have 1st/2nd year college students in a seasonal clerical role in one season and bring them back in future seasons as preparers.

2. Many firms (unfortunately even my own, on some occasions) refuse to market/accept new clients during tax season because they are “too busy” (see item one above J). I learned a powerful lesson from a prospect 4-5 years ago. She called during season solely to discuss handling their 15 person payroll at the end of the year. In just 4 years, they became our single largest revenue client ever (over 15 year) from service additions in the first year—and when asked why they chose E&A, the manager said we were the only firm (out of about 10) that agreed to meet during tax season and that doing so showed we understood the Board wanted what they wanted when they wanted it and would reward handsomely those who delivered on that. And if a firm really is too busy, it can screen prospects and accept only those it’s willing to give up its worst clients to get.

3. A number of firms seem to “coast” a bit early in the season when things are slow and only ratchet up their intensity when things get crazy late in the season. Working sufficiently hard to maintain a nearly non-existent backlog early in the season allows a firm to be “fresh” when the flood

comes. Staff maintain a steady, sustainable schedule all season instead of working extra hard and extra long hours late in the season when they’re already fatigued.

4. Many firms still think they should accept anyone who comes through the door and pays the asking price. Concentrating on serving specific types of clients, even if at a full service, generalist firm allows more effective staff development, marketing efforts, etc.. This is a little different than niche’ing. It’s more of a focus issue…for example, setting a minimum price and sticking to it, even if it means certain prospects don’t become clients; and being a full service firm that identifies itself as either (using a hamburger analogy) White Castle, McDonalds, neighborhood sports bar (this is us—far better food than the chains and more expensive, but not Big-4, either) or Morton’s Steaks service experience.

– Joe Eckelkamp

If you have a high net worth client base with a solid reputation you can grow with referrals. You can keep your costs under control if you work in a residential area with part time employees.

– camcocpa

Clients are looking for an increased level of communication and interpersonal relationships. Certainly technology is important, but the

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overriding factor in my experience is communication and responsiveness. No one wants to be ignored or considered just a number.

Piggybacking on the communication aspect, the expectation of my clients has been an increased level of knowledge. The old saw “it depends” or “let me research that” don’t work in this competitive environment. Therefore, continuing ed is a priority and a necessity. Clients expect a degree of immediacy in response to their questions. Admittedly there are some transactions or events that DO require research, but the client should be given adequate knowledge of the appropriateness of research and the time line for completion of that research and follow-up with the client.

Finally, pulling it all together, technology gives us access to our client information almost immediately. When a client calls, their records are brought up for review – which makes answering any questions something more than a guessing game. The same technology allows us to research simple questions while talking to clients. In this world of blended families, changing economies, diminished asset valuations and changing tax laws – communication and knowledge are truly king.

– Barney Rouse

I am busy. It seems that everyone came in late (due to late 1099 filings) and it appears that I have only lost a few clients due to fees. I have also picked up a few clients that have “messed up” in the past with using Turbo Tax and

now realize the errors of their ways – it costs more to fix the problem once the IRS inquires about mistakes!

– Bruce Ekmanian, CPA

I am having a greeeeeat season both in fees, client retention and adding clients. I’d like to think it is word of mouth and previous performance. Almost 90 % of the new clients are referrals from existing clients.

– David

1. The economy is still down. When that happens we have to get sharper.

2. Sharper client service.

3. Sharper pricing.

– Ken Sorge

A lot of it has to do with how well the solo practitioners can leverage technology to manage their practices. The ones that have a better grasp on technology seem to be more efficient & responsive, more profitable, and have more satisfied clients. The solo practitioners that are not as tech savvy seem to spend much more time and money trying to figure out how things should work or doing rework.

– Jessica Beal

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Where Are the New Clients? And, is that the right question?

The top challenge for firms is getting new clients, according to a new survey of Sage Accountants Network members.

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Next most frequently mentioned were tax law complexity and changes, followed by time management, keeping up with technology, and the effect of new regulations and standards.

Among the 533 respondents, 34% stated that getting new clients tops their list of concerns. 28% cited tax law complexity and changes as an issue; followed by the effect of new regulations and standards on small firms, keeping up with technology, and time management concerns, all at 24%. Work/life balance was cited by 20% of respondents, and keeping up with professional standards was a key concern for 17% of those surveyed. 13% of respondents cited access to affordable healthcare for employees as a worry for their firms.

But are they asking the right questions? Doesn’t the most profitable incremental revenue come from up- and cross-selling existing clients? If getting new clients is No. 1 and retaining clients is No. 12 on the list, then many firms are headed for profitless growth — or worse.

Perhaps in response to the search for new clients, 83% of firms currently specialize or are planning to specialize in specific vertical business segments, according to Sage. By far, services/consulting was the most popular category for specialization (63% of those surveyed), followed by construction at 43% and retail at 39%. Other popular areas of specialization include working with nonprofits (35%), restaurants (30%), and manufacturing/distribution (29%) clients.

“Fundamental to Sage’s commitment to accounting professionals is a clear understanding of the common issues facing those in the profession, open dialogue with accountants, and finding ways we can better help them with their most pressing concerns,” said Jennifer Warawa, senior director, partner programs, Sage. “Based on our research and in anecdotal conversations with our membership, specialization is currently at the forefront for most firms.”

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When it comes to using social media for business purposes, the most popular social media tool for the accountants in Sage’s survey is their own firm’s Web site, at 37%. Some 28% of respondents are utilizing LinkedIn, 19% are using Facebook, 7% use Twitter, and 3% use YouTube. 43% of those surveyed stated that they use no social media at all for business.

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The New Success Formula Turning Complexity into Opportunity

To flourish in this increasingly difficult climate, CEOs are looking for creativity in their executive teams and advisors.

In fact, the authors of a vast new IBM survey of 1,500 CEOs across the globe say top executives now believe creativity rivals integrity as the single most important quality in a leader.

“Creative” leaders will need to be more comfortable with ambiguity and experimentation. To motivate and communicate with a new generation of followers and stakeholders, they will need to embrace, in the words of one unnamed professional services CEO in the U.S., “disruptive innovation and continuous re-invention.”

The new mission of tomorrow’s top leaders will be two-fold:

1. Reinvent customer relationships – 84% of U.S. CEOs say “getting connected” to better understand, predict and give customers what they really want is their top priority. That’s somewhat less than the global average. IBM suggests that some U.S. CEOs may be “failing to capitalize fully on the customer data they collect.”

2. Build operating dexterity – 36% of U.S. CEOs are focusing on simplifying their products and operations, chiefly, it seems, through continued cost-cutting. Some 64% of U.S. CEOs “are intent on reducing their fixed and increasing their variable costs, so that they can rapidly scale up or down.” In most other nations, CEOs are

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emphasizing re-thinking their systems over continued cost-cutting.

Ignoring complexity is no longer an option for CEOs, CFOs and other finance and accounting professionals. Will you allow complexity to strangle improvement, crush morale, or undermine profitability?

The bottom-line question is how will you and your organization respond? How will you develop “the creative leadership, customer relationships and operating dexterity” to turn complexity into a competitive advantage?

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Top 100 Firms New Technologies Boost Client Retention and Revenue Growth Survey Shows 82% of CPAs at Top 100 Accounting Firms Tie New Technology Adoption to Client Retention and Firm Growth.

Bay Street Group Research finds accounting firm partners are embracing document management and Software-as-a-Service solutions to meet client needs and expectations.

The accounting profession’s largest U.S. firms believe they are nearly 100 percent focused on client needs and expectations, and perceived by their clients as technologically savvy with the adoption of paperless and cloud-based technologies to speed productivity.

“It’s clear that firms must provide as many resources as possible to save their clients time and money. These include easy-to-use portals and other applications to enable the exchange of documents and information.”

These and other preliminary findings are the result of a new study commissioned by Fujitsu and SpeedTax, and conducted by the Bay Street Group, a NY-based custom research and strategic consulting firm for the professional tax, accounting and finance community.

Fujitsu, the market leader in document imaging scanners and services, and SpeedTax, a provider of Software-as-a-Service (SaaS), fully automated sales tax management solutions, formed an alliance earlier this year to help CPAs and accountants understand the integral, client-focused relationship between document management, SaaS and sales tax/compliance. The new alliance offers combined thought leadership from both companies, which translates into business value for CPA firms of all sizes.

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Managing partners, partners, senior executives and senior staff from Accounting Today’s Top 100 Firms for 2010 participated in the survey; and while the full results and analysis will be released in January 2010, here are the top-line preliminary findings:

• With an overwhelming 82% of respondents believing new technologies are changing client expectations – and nearly 90% stating they are perceived by clients as technologically advanced – almost 75% of respondents believe their firms need to provide multiple document scanners to their staff and adopt new SaaS solutions.

• Firms should position themselves with clients as a true business partner by discussing commitment and focus; 94% of respondents believe their firms are highly focused on client needs and expectations.

• Through the adoption of workflow, scanning and SaaS solutions, firms can demonstrate they have the experience and knowledge to make any client matter more efficient and productive.

Bourke

“The systems and processes implemented by the Top 100 firms are a good litmus test that all other firms – from sole practitioners to large, local organizations – should follow,” said Jim Bourke, CPA.CITP, partner at WithumSmith+Brown, PC. Bourke recently authored “3 Key Tech Strategies of Successful 21st Century Accounting Firms” (10 pages, PDF), a white paper describing how competitive, growth-oriented firms are leveraging technologies like document management and SaaS to better serve clients and improve internal operations. “It’s clear that firms must provide as many resources as possible to save their clients time and money. These include easy-to-use portals and other applications to enable the exchange of documents and information.”

“We’re thrilled that executive management in the nation’s largest firms recognize the significance of leveraging

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document management, SaaS and related workflow technologies, but we’re even more pleased that the firms realize they need to talk about making a commitment to solve client problems through technology implementation and experience,” said Scott Francis, vice president of marketing at Fujitsu. “This shows that productivity has been elevated to a more strategic level rather than focusing solely on task-based processes. For example, firms that consistently educate clients about the business advantages of document-management technologies have a good opportunity to increase client retention.”

“SpeedTax has spent the last three years educating the profession on SaaS-based sales tax services, and along with Fujitsu, how document management integrates to improve workflow; these preliminary findings appear to validate our activities,” said Anton Donde, CEO at SpeedTax. “We look forward to continuing to work on education and thought leadership initiatives that further contribute to firm growth via client satisfaction and retention.”

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25 Surefire Ways to Keep a Client for Life Client service is not just smile training — it’s about treating people the way they wanted to be treated.

by Arnold Sanow http://www.arnoldsanow.com

In today’s fast-changing and competitive environment, excellent client service is not only nice but essential for success. In fact, the only way to differentiate yourself and to become less of a commodity in the marketplace is through outstanding service. The strategies for keeping clients for life can be honed down to some basic steps that any business owner can use.

To get clients, keep them and to get enthusiastic referrals follow these 25 proven techniques:

1. Reward your clients. Send them a gift, provide them a lead, generate business for them, etc.

2. Use your clients’ services and buy their products. If you want to increase loyalty, there is no better way.

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3. Send thank-you cards. Make sure they are handwritten and sent promptly. Peter Drucker attributed much of his success to the fact that he sent out 12 thank-you cards every day.

4. Return phone calls promptly. Since so many people don’t return calls, you automatically look good when you do.

5. Do what you say you are going to do.

6. Do things when you say you’re going to do them.

7. Underpromise and overdeliver.

8. Be accessible. Make sure you are available and willing to help clients whenever there is a problem. Your business should be open to meet the convenience of your clients and not only for your convenience.

9. Be credible. If you can’t establish that trust right away, clients may start to look at your competitors.

10. Appearance counts. Perception is reality, and the reality is that people do judge a book by its cover.

11. Show empathy. Put yourselves in the clients shoes and see things from their viewpoint not just yours.

12. Have a “Goof Kit.” If you make a mistake, it’s not enough to say, “I’m sorry.”

13. Promote clients’ products and services. By getting business for your clients, you ensure you will have a client for life.

14. Do things for the client’s convenience not yours. Make it as easy as possible for your clients to do business with you. The easier you can make it for your client to do business with you, the more business you will have. Determine all the ways you can eliminate the hassle factor.

15. Send an invoice periodically with a “no charge” on it. This will help your clients remember you. And if it is unexpected, it will have a much larger impact.

16. Have a client advisory panel. Only by knowing your clients’ wants and needs can you successfully grow your business and be totally client-oriented.

17. Hire mystery shoppers. To really find out how good your client service is, hire someone to go out and use your service from start to finish.

18. Be a resource. No matter what your client needs, try to find it for them — even if it has nothing to do with your business.

19. Shower clients with kindness.

20. Speak your clients’ language. If you use jargon your clients can’t understand, they will be confused and may not use you.

21. Have a great attitude.

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22. Treat your employees well. If they are treated poorly, there is a good chance your clients will also get poor service.

23. Give your client what they want, when they want it and how they want it.

24. Give back to your best clients. If you run a special price or product offer for first-time clients, ensure your current clients are offered the same opportunity.

25. Don’t show an attitude of indifference to your clients. In a recent study on why people give up on a company, 68 percent quit because of an attitude of indifference toward the clients by the owner, manager or employees – 68 percent!

Great client service is about giving the client what they want, when they want it and how they want it. It really comes down to the fact that good communication and human relations skills equals good client relations.

Arnold Sanow is a speaker, seminar leader, facilitator and coach. He is the author of “Get Along with Anyone, Anytime, Anywhere.”

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36% of Clients Dissatisfied And Already Shopping for Another Accounting Firm Clients seek broad array of services

via CCH

Few concerns weigh more on the minds of accountants than the desire to satisfy, and retain, clients. As CPA firms look to build client loyalty and grow profitability, a new CCH nationwide survey – the CCH Accounting Firm Client Survey – pinpoints what’s most important to keeping accounting firm clients, and why they leave. The independent survey commissioned by CCH, a Wolters Kluwer business, was issued to accounting firm clients including individuals and small, mid-size and large businesses.

In a keynote address to over 1,000 tax and accounting professionals attending the CCH User Conference in Grande Lakes, Orlando, CCH President and CEO Mike Sabbatis shared findings and insights from the survey.

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He noted that while the need for accounting firm services surged in the past decade and firms’ biggest concern was keeping up with growth, the survey reveals new pressures on the profession in terms of client expectations, demand for services, competition and service value.

“It’s clear that client needs are changing rapidly, and your competitors are seeking to take advantage,” Sabbatis said. “The firms that will overcome obstacles and realize the opportunities before them will be those that challenge themselves to break down the barriers that may be constraining their success.” The good news is that most clients view their CPA firm as a strategic advisor, are generally satisfied with their firm, and are willing to refer their firm to others. However, that does not guarantee client loyalty.

In fact, 36 percent of business clients report they are likely to switch CPA firms in the next year. In the current economy, few firms can afford the risk of this client turnover level. “Ensuring the accounting firm client connection remains strong requires a continuous commitment,” said Sabbatis. “Firms need to have the right staff, the right processes and the right technology to ensure there are no boundaries to their ability to understand and meet clients’ needs.”

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Key findings of the CCH Survey:

• Clients almost universally recognize their CPA firm as a strategic advisor, with 94 percent of business clients and 81 percent of individual clients surveyed viewing their firm as such.

• Firms have a significant opportunity to better leverage this relationship by providing existing clients with extended services. Significant gaps exist between the volume of tax, accounting, auditing and management advisory services clients need and the types of service in each of these areas they seek from their CPA firm. For example, while 99 percent of individual clients surveyed used their accounting firm for tax preparation services, only 48 percent said they turned to their CPA for tax planning.

• The top concern for both business and individual clients is minimizing taxes.

• Client needs are growing. Forty-five percent of business and 24 percent of individual clients say support needs will increase in 2011, while just 5 percent of business and 7 percent of individual clients say needs would decrease.

• Fifty-five percent of business and 29 percent of individual clients report the number of specialized services they need from their CPA firm is growing.

• Retention risks are real. Thirty-six percent of business clients are considering switching firms,

and 55 percent report they are being prospected by other CPA firms.

• While 79 percent of business clients say they are generally satisfied with their CPA firm, of that group, only 17 percent are completely satisfied.

• The top reason clients would consider leaving their firm is if the firm does not regularly check with them on their changing needs.

• Firms’ overall expertise is a top driver in firm selection for business clients. For individuals, referrals most often drive selection.

• Business clients are leveraging technology and they expect their firms to do the same, whether it’s working in the cloud or digitizing more of their environment.

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One Firm’s New Game Plan Biz Dev and Client Service Teams

Kirkland Albrecht & Fredrickson battles a bruising recession.

by Rick Telberg

By the time you read this, Ken Kirkland will be packing for a trip to the India beach resort of Thiruvananthapuram as the newly named international chairman of the JHI accounting firms network.

As a leader of the 120-firm, 55-nation group, Kirkland hopes to help build stronger programs, increase participation and attract new members. “As companies like ours want to stay independent,” he says, “it’s important to be affiliated with a group like JHI to access additional resources and opportunities.”

While that job sounds formidable, it pales in comparison to the challenges Kirkland faces as the chief executive of Braintree, Mass.-based seven-partner, 58-staffer CPA firm Kirkland Albrecht & Fredrickson that is battling back from a bruising recession.

Many in the profession may know the firm better as the force behind XCM-automated workflow solutions (a CPA2Biz ally) and Xpitax tax-prep outsourcing. But back at the firm, branded as KAF Group, Kirkland is working to rebound from painful layoffs last year and a week-long unpaid furlough for remaining staff.

“Recessions are a time to look inward and ask how we can improve,” he says. So the firm went back to the basics of the accounting business with two initiatives, one focusing on client satisfaction and the other on acquiring new clients.

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Initiative 1: Ramping Up Biz Dev

Even while cutting other expenses, Kirkland doubled down on sales and marketing. In 2009, he hired a public relations agency in 2009 and changed the firm’s chief marketing officer, the well-respected Becky Dowd, into the firm’s chief practice development officer. It’s not a new role for Dowd; she already had experience in sales with ADP, the Bank of Boston and commercial real estate. In addition, each partner accepted new responsibilities for new business development.

Now, on the last Tuesday of every month, from 8 a.m. to 6 p.m., Kirkland meets with one niche team after another. They separate prospects into hot, warm and cold categories, create and follow up on action items, probe cross-selling opportunities and fill in marketing-activity calendars for the next month with lunches, dinners, speaking engagements, golf outings and client trade association meetings. “It’s all about accountability,” Kirkland says.

Initiative 2: Surround the Client

In the other key initiative, Kirkland is creating client-service teams to, as much as possible, he says, “surround” the client with service and attentiveness. Each team is headed by a “client-relationship executive,” which, to most CPAs, translates as “engagement partner.” But, where previously KAF’s formal client-service program may have ended there, under the “total quality service” program, Kirkland has added the practice development officer, senior managers, administrators and specialists.

“The client should feel they’re getting touched in so many ways,” Kirkland says.

To track the firm’s new revenue goals, Kirkland has borrowed an idea from church fund-raisers: the oversized thermometer with the rising red line to show progress from Sunday to Sunday. “It started as a joke,” Kirkland says. “But it’s a serious thing.”

How’s it all working? Last year, the firm’s revenue declined — for the first time in a very long time. This year, revenues are running six percent ahead of last year’s.

But it takes years to change a firm’s culture as fundamentally as Kirkland hopes. And only new clients are being added to the “total quality service” program as they join the firm. Furthermore, Kirkland doesn’t expect the Boston-area economy to show signs of new life for another 18 months to 24 months, especially in the firm’s sizeable construction niche. “So ask me in two years how we’re doing,” he says. “I won’t be sure until then.”

In the meantime, KAF will be working hard for every client dollar.

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Women Say Their Financial Advisors Come Up Short Advisors need to understand the differences between men and women clients.

In what could be a wake-up call for accounting firms, a majority of women think that their wealth managers could do a better job of serving them, and nearly a quarter of them say that there is a “significant need for improvement,” according to a new global study by The Boston Consulting Group. The findings—released in a White Paper titled “Leveling the Playing Field: Upgrading the Wealth Management Experience for Women” — are based on a survey of 500 women and more than 70 interviews with private-banking specialists and wealthy women around the world.

The fact that women, as a group, are overlooked or undervalued belies their significance as wealth management clients. According to the study:

• Women controlled an estimated 27 percent, or about $20 trillion, of the world’s wealth in 2009.

• The percentages were highest in North America (33 percent), Australia and New Zealand (31 percent), and Asia (29 percent, ex Japan), and much lower in Latin America (18 percent), Japan (14 percent), and Africa (11 percent)

• In Europe, the percentage was higher in Western Europe (26 percent) than in Russia (21 percent) and Eastern Europe (19 percent, ex Russia)

Figures are based on wealth owned by clients with at least $250,000 in investable assets, which include cash deposits, money market funds, listed securities held

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directly or indirectly through management investments, and onshore and offshore assets.

While the share of wealth controlled by women has changed only gradually over time, the amount of women-controlled wealth has been on a rollercoaster ride since the start of the financial crisis, mirroring the overall movement in global assets under management (AuM). After falling sharply in 2008, it soared by 16 percent in 2009, to $20.2 trillion. It grew by nearly 30 percent in Asia (ex Japan) and by 24 percent in Australia and New Zealand. In other regions, it increased by anywhere from 13 to 18 percent, except in Japan, where it grew by only 2 percent.

BCG projects that the amount of wealth controlled by women will grow at an average annual rate of 8 percent from year-end 2009 through 2014, slightly above the 7 percent rate from year-end 2004 through 2009. Emerging markets are expected to lead the growth over the next several years.

An Uneven Playing Field

According to the survey, conducted in early 2010, 55 percent of respondents said that wealth managers could do a better job of meeting the advisory needs of women; 24 percent said that private banks could significantly improve how they serve women.

“The dissatisfaction stems from the unshakable perception that men get more attention, better advice, and sometimes even better terms and deals,” said Peter Damisch, a BCG partner and a coauthor of the study. “We

heard this sense of subordination time and again in our interviews.”

The problems that cause women to feel like second-class clients are deep-seated. They stem from experiences in the advisory process as well as the communication style of private banks and relationship managers (RMs).

• Many women said that their RMs assume that they have a low risk tolerance and thus provide only a narrow range of investment solutions

• Some said that they were given “dumbed down” versions of the standard offering

• Several said that their advisors do not take them seriously, which made for off-putting and sometimes humiliating interactions

The problems are compounded by the superficial strategies that some wealth managers use to target women. “Some of the most common approaches revolve around products, pitches, or promotions that can easily come across as patronizing or contrived,” said Monish Kumar, a BCG senior partner and a coauthor of the study. “They can alienate the very people they’re meant to attract.”

Wealth managers need to understand that there are material differences between men and women clients. Women, for example, often seek holistic advice to fulfill long-term goals. Most want their banking relationships grounded in empathy and personalized advice, while men tend to view their banking relationships through a business-oriented lens.

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“These generalizations should not be taken as holy writ,” cautioned Anna Zakrzewski, a BCG principal and a coauthor of the study, “but they do shed some light on why so many private banks—despite targeting other groups of clients, such as doctors or lawyers—still have a service gap between male and female clients.

“For example, many women feel that their advisors focus too much on short-term results and disregard their long-term goals, which often revolve around major milestones in a woman’s life, such as the birth of a child. This is in part a function of incentive systems and company cultures that are focused on near-term performance, but it is also a shortcut and a symptom of superficial advisor-client relationships.”

Upgrading the Client Experience for Women

Wealth managers can attract new clients and reinforce relationships by fine-tuning, rather than reinventing, their approach. “Most banks will find that the problems are less about what they provide for women, in terms of products, and more about how they deliver their service,” Kumar said.

Wealth managers can put their RMs in a better position to initiate or strengthen relationships simply by calling attention to areas where women generally feel undervalued or overlooked. More ambitious wealth managers can develop robust training programs and incentive systems to ensure that they are serving women effectively.

Most important, wealth managers should recognize that the necessary changes are likely to be subtle rather than sweeping. “As critical as it is for wealth managers to improve how they serve women, it is equally important that they understand the cost of artless overtures,” Damisch noted. “Overreacting to the problem with graceless ‘solutions’ will do more harm than good.”

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Back to Basics with Client Service Three Rock-Solid Principles by Rick Telberg

It shouldn’t take an economic downturn and cutthroat competition for accounting firms to rekindle their interest in optimizing client service, satisfaction and retention.

“It should be at the top of the agenda all the time,” Sandra Wiley, COO at Boomer Consulting was telling me.

But with the economy of the new normal, client service has become a hot topic.

It doesn’t take a rocket scientist to see how critical client service is to success or failure for an accounting practice, not to mention any business. Just do the math. By some widely accepted measures cited by Wiley, unhappy clients will tell 10 people and happy clients may tell four. Unfortunately, too many accounting firms go to market as if their motto was, “We’re no worse than anyone else,” Wiley says.

What should you do about it? Wiley starts with a few basic principles:

1. The customer is always right. They may not be able to prepare their own tax return or run their own P&L. But you can’t argue with their opinion of you, your firm or the way they’re treated. It starts with listening, listening hard and listening systematically. Sometimes that may require an outside consultant with objectivity and independence. And if you hear something you don’t agree with, go back to the beginning of this paragraph.

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2. Every person in the firm is responsible for delivering — in Wiley’s term — “amazing” service. Everything a firm does must be predicated on client service and satisfaction — delivering value that clients understand. It really doesn’t matter how many hours you put in on that audit. The client just wants the unqualified opinion and your ideas on what you found while doing the audit. Clients really don’t want to pay taxes; they want to have paid taxes. And your job is to make that as painless as possible.

3. And, finally, you can’t treat your clients any better than you treat your staff and each other. So start by looking at ways to make sure your staff is happy, satisfied and fully engaged in the work of the firm.

To put the principles into action, start here:

Understand who your best clients are. These are the clients you’d like to clone. Start ranking your book of business by criteria like revenue, referrals, the number of your services they use, “share of wallet,” risk and how big a pleasure (or a headache) they are to work with. With that, you’ll probably discover that 20 percent of your client list is producing 80 percent of your income. Now you know on whom to focus.

You’ll also find out who your problem-clients are. With tight staffing and the need to make every billable hour count, few firms can afford to waste time on marginal clients. Start weeding out the bottom 10 percent. Some firms simply raise rates or cut service. But that can be a mistake, creating a whole new category of disgruntled ex-clients. Better: You can send them a “Dear John” letter

saying, essentially, “it’s not you, it’s me” — explaining that the firm is moving in a new direction. It’s best if you can refer them to another firm or practitioner who may be better geared to take them on.

Relieved of the time sinks, you now have time to deliver the kind of service and value to your best clients. These are clients for whom you build a client newsletter, from whom you request candid feedback, to whom you send holiday invitations and with whom you build a thriving new firm.

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The 3 Big How-To’s for Client Satisfaction Surveys What you need to know to get started today.

Jean Caragher

A record number of accounting firm professionals are joining the webinars on client service, satisfaction and retention, produced by The Seven Keys to Successful CPA Firm Management.

Co-presenter Jean Caragher of Capstone Marketing sums it up, saying, “The bottom line: Every CPA firm claims to deliver excellent client service.”

But, she added, “How does your firm support that claim? Do you have a formal client satisfaction and retention program?”

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If not, today is the day to start. Here’s how:

1. How to ask:

• Written surveys (mail, online). • Interviews. • Clients panels, focus groups. • Short surveys after completion of engagements. • Events: Seminars, social events (golf, theater, etc.). • Communication: Newsletters, e-newsletters.

2. What to ask:

• How you were selected: Competitive fees, Industry expertise, Location, Integrity and ethics, Personal relationships, Professionalism, Range of services, Reputation, Size of the firm, Technical expertise.

• What do you enjoy most about working with us? • What are you dissatisfied about with your

relationship with? • What do you think differentiates (your firm) from

other accounting firms? • In the past year have you considered changing

CPA firms? If yes, why? • Questions regarding referral activity,

quality/timeliness of services, frequency/quality of communications, their engagement team.

• Cross-selling questions: You are currently providing, Another Company is Currently Providing, Planning to Purchase in the Next 12 Months.

• Rate value for fees paid.

3. When to outsource:

• When you don’t have the internal resources. • When you are interested in obtaining more

unbiased feedback.

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Five Ways to Shift from Cross-Selling to Cross-Serving Your Clients How to embrace a new advisory role and really deliver value.

Tracy Crevar Warren, CEO, The Crevar Group

In the new book, “Bull’s-Eye! The Ultimate How-to Marketing and Sales Guide for CPAs,” business development veteran Russ Molinar discusses a concept he calls “cross-serving.” According to Tracy Crevar Warren, cross-serving offers an alternative to cross-selling, while highlighting the importance that the trusted advisory role plays in serving clients.

She cites the Bay Street Group research showing 63% of clients indicate that proactive advice and consultation is an important criterion in selecting a CPA firm. However, 44% noted problem-solving ability as a top factor.

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And then she lays out five steps to shift from cross-selling to cross-serving:

1. Change your mind-set. Embrace an expanded advisory role. Know that your clients rely on you to bring new opportunities their way and that includes new services that you can help them with.

2. Make it a part of each engagement. One of the easiest ways to put your expanded role into action is to bring this new focus into each client engagement. This is the time when you will be working most closely with your clients so you have the best opportunity to observe potential problems or areas for improvement. Make notes of your discoveries along the way.

3. Share your findings with your clients. Many practitioners have good intentions of bringing new ideas to their clients, but often don’t because they feel it’s too aggressive or forceful. Own your expanded role by sharing your money-saving and profit-making solutions with them.

4. Meet regularly with your clients beyond the engagement to discuss new ideas. Don’t stop at client engagements. Take this new responsibility a step further. Initiate meetings with your clients throughout the year to find out what’s new, and what they are struggling with or working toward. Take the time to match firm offerings with their needs. They will appreciate your efforts to help them.

5. Keep in touch with clients in between meetings by sharing additional ideas. One of the best ways to

reinforce the new ideas you share with your clients is to keep those messages coming to them long after your meetings are over. Reach out to them at least once every month. Many practitioners are experiencing great success with simple, inexpensive tools such as e-newsletters, blogs and social media networking sites like LinkedIn, Facebook and Twitter. Don’t forget about the power of a good old-fashioned handwritten note with an article attached.

According to Bay Street Group’s findings, 35% of clients indicate that the primary reason they would change CPA firms is because their CPA was not proactive enough. “Like it or not, your competitors are calling on your clients regularly,” Warren says. And, they are offering up new ideas and insights targeted at helping your clients solve problems or achieve goals like making more money, operating more efficiently and reducing expenses.

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Question: What’s Great Client Service Worth? Answer: 10% to 25% more.

More than 70% of potential clients say they’d be willing to pay as much as 10% more for a product or service if a company exceeded their expectations. And more than a third of buyers would be willing to pay as much as 25% more if the company provided superior service after the sale.

Also, according to a Strativity Group study of 2,000 people’s buying habits:

• satisfied customers are three times more likely to continue doing business with the same company for 10 years or more

• those who’ve had a negative buyer experience are 10 times more likely to stop doing business with a company within a year, and

• once jilted, 52 percent of respondents said they’d only be willing to continue their business if a discount of 5 percent or more was offered.

The three things customers value most in a sales rep are:

1. the ability to resolve problems effectively, 2. common sense and 3. the ability to consistently exceed expectations.

“The initial assumption that we had was that customer loyalty is dead, that the only loyalty is to price,” said Strativity CEO Lior Arussy. “But it’s not only about price sensitivity. The verdict from the consumers is very clear: if we see an exceptional customer experience, we’ll pay more for it, we’ll stay longer, and we’re going to give you more business.” via BusinessBrief.com

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Do Your Clients Really Want to Talk to You? Or would they rather text?

It may depend on their age. Or yours.

New data from Nielsen suggests that today’s Twenty-somethings text more than they talk on the phone.

Maybe it’s time to redefine the rules of office communications and client relations.

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Four Tough Client Service Problems And dozens of possible solutions from staffers…

At a staff workshop, there was a brainstorming session to answer some key questions about what constitutes excellence in client service.

Four questions were placed on the table:

1. How can we make it easier for our clients to do business with us?

2. How do we meet and exceed expectations?

3. How do we overcome an attitude of indifference on our part towards the customer?

4. How do we make the workplace a more positive place to work?

Here are the results from the attendees.

How many of these items could you deploy in your office?

1. How can we make it easier for our clients to do business with us?

• Online message board to better communicate calls that are received

• Questions and answers online – online help • Instant chat lines set up to answer customers

concerns • Increase one stop shopping – get call answered • Technical staff should get out and meet customers • Have a profile and complete record of each

customer.

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• Checklist for people who are at help desk for answers to frequently asked questions and for what questions to ask the customers

• Customer rep for each floor • Focus groups/Brainstorming sessions with

customers • Very clear instructions for customers. (i.e. little

card for instructions) • Effective service level agreements • Call back after assistance to see if problem was

solved • Pleasing personality – work on SOFTEN and

phone personality • Have 800 telephone numbers • Support off hours and weekends 24/7 • Onsite support for each floor and field office • Develop a pamphlet and online directions on how

things work – step by step • Be accessible to customers

2. How do we meet and exceed expectations?

• Good timely response • Have meeting with staff to outline and discuss

what excellent customer service means. (Can’t just say quality, but explain what exactly quality means)

• Go beyond solving to explaining and educating the customer

• Acknowledge customers – give full attention and listen

• Contact after the problem has been solved – follow up

• Customer advisory board

• Underpromise and overdeliver • Do what you say you are going to do • Do it when you say you are going to do it • Do it right the first time • Keep it simple • Train and educate customer base • Think outside of the box • Customer surveys/focus groups • Reward exceptional performance for meeting and

exceeding expectations • Determine customer expectations • Set guidelines for being more reliable, responsive

and credible

3. How do we overcome an attitude of indifference on our part towards the customer?

• Listen to them • Follow up • Empower customers – Give them the tools to do

things themselves • Get more customer involvement • More educational opportunities • Incentives • Prompt assistance • Ask the right questions to find real problems and

concerns • Customer focus groups • If cannot resolve customers problem direct it to

the right place • One stop shop – one person should know answers

or manage the response to make sure customer gets an answer and is not “tossed around”

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• Be sincere and genuine – not just insincere “smiles”

• Be respectful • Don’t add burden to customers frustration • Don’t take it personally • Incentives for the staff • Customer relations training for everyone at all

levels • Make everyone feel like part of the organization –

connecting to the core mission • Take a break – Don’t treat like a nuisance

4. How do we make the workplace a more positive place to work?

• Improve managers knowledge about the real work environment

• Empowerment for employees to make decisions • Rewards and strokes – appreciation • Teambuilding sessions with the whole team • Open communication • Clear guidelines • Say “NO” less often • More recognition for both internal and external

customers • More open door policy • Showing the flag – get in front of the customer

more often – visit • Less duplication of effort • Help manage customer expectations – educate the

customer • More training

Via Arnold Sanow. For more information on Sanow’s programs go to www.arnoldsanow.com.

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Is Your Firm’s Corporate Culture Getting in the Way of Great Client Service?

Developing excellence in client service requires a change in organizational culture.

Kevin Phillips, director of consulting services, ProHorizons Network Inc.

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And culture change is very difficult.

As valuable as a brainstorming session might be in shaking loose new ideas, Kevin Phillips, director of consulting services at ProHorizons Network Inc. says it’s even better to identify just one or two behaviors that will move the entire organization in a new direction.

“If the firm is profitable, it is probably doing a lot of things right,” he says. “If the firm is human, there is probable one or two adjustments one could make to make it even more profitable. The trick is to identify them.”

To get at culture, Phillips recommends ask these questions:

1. What behaviors do we repeat over and over again out of habit that limits the quality of our customer service?

2. In what ways to do each staff member feel constrained, limited or shut down? Where do these experiences overlap?

3. Who sets the cultural norm around here? And what benefit does the norm-setter gain at the expense of better customer service?

So before brainstorming begins, it might be helpful to invest some energy in really understanding the firm’s culture.

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Can Your Clients Tell if You Are Faking It? Take this quick, 10-question quiz to find out. Do you seek out opportunities to learn new things that will help your clients overcome their most difficult challenges?

Selling value-creation advisory services is truly a slam dunk with most modern business owners, according to Edi Osborne of MentorPlus. The bad news is that, although most CPAs would say they are their clients’ most trusted advisor, few could answer the following questions in the affirmative.

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How well do you do on this quiz?

1. Can you name your clients’ biggest competitors and outline their key differentiators?

2. Have you ever accompanied your clients to one of their industry conferences?

3. Have you ever signed up for a business seminar for you and your clients to attend together?

4. Do you routinely read your clients’ trade publications?

5. Do you routinely read business publications, such as Inc., Fast Company, or Fortune?

6. Do you monitor the activities of your clients and their industry with Google Alerts, and send them a note or pick

up the phone to acknowledge the press they have received?

7. Have you ever come across an article that speaks to your clients’ issues and sent it to them with a personal note?

8. Have you ever sent them a personal note? Maybe a birthday card? Maybe an anniversary card of the day they became a client?

9. Have you ever conducted an employee exit interview on behalf of your client?

10. Do you have a copy of your client’s strategic plan? Are you included in meetings where the client discusses overall business strategy?

If you haven’t scored a perfect “10,” clip and save this list in your pocket. You might be able to use it sooner than you think.

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Client Service:

The Only Thing That Matters Today

Steve Erickson, national consultant to CPA firms

Four ways to prove you’re serious about customer satisfaction. by Steve Erickson www.SteveEricksonLLC.com

Most partners in CPA firms tell me that client service is one of their primary concerns as work is often delivered at the 11th hour before a deadline or they have failed to meet their client’s expectations.

Extraordinary client service is achieved by communicating and agreeing on the mutual responsibilities of both the client and the accounting firm and then meeting or exceeding those expectations.

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Too often these agreements and expectations are not defined and as a result clients develop expectations that are not realistic or understood by their accountants.

I continue to be amazed at how few accountants ask their clients how they could provide them with better service and better value for fear of what they might hear.

If accountants are really serious about client service they need to:

1. Make sure the client understands and agrees to the engagement plan and timing before starting the work.

2. Communicate early and often as to the status of the engagement.

3. Make staff aware of the engagement plan and their responsibilities to make sure it is accomplished.

4. Maintain your “great place to work” culture. Happy employees give much better service and greater value to your clients.

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15 Reasons to Dump a Client You know the type.

They’re the clients that keep you awake at night, bother you on weekends, and drive your staff crazy. They’re the clients you’d rather you didn’t have. Wouldn’t it be great to dump them and make them some other accountant’s problem?

But how do you spot a problem client before they swell into a catastrophe? Arvid Mostad, president of Mostad & Christensen, a supplier of marketing materials to accounting firms, outlines…

The 15 habits of bad clients:

1. Slow paying or non-payment of fees.

2. Write-downs always exceed write-ups.

3. Client frequently complains about billings.

4. Client is unwilling to pay for added services.

5. Not profitable when compared to other clients.

6. Personality conflict with partners and staff.

7. Client conduct makes staff uncomfortable.

8. Client is abusive to staff, even if civil to partners.

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9. Client fails to cooperate or provide information on a timely basis.

10. Client doesn’t listen to advice given, then complains about results.

11. Client projects are always on a crisis time schedule.

12. Client expresses lack of trust in the firm’s work.

13. Client is less than truthful.

14. Client has taken on new ventures outside the firm’s area of expertise.

15. Client’s activities expose the firm to liability.

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Eight Essentials for Measuring Client Service Don’t wait until the end of the year to find out how well you are serving clients.

by August Aquila AquilaAdvisors.com

You can ask clients at the end of the year about how well you met their expectations, but that does not give you any time to change your current modus operandi before year-end.

A better way is to have leading measures that tell you how you are doing during the course of the year.

Let’s look at eight.

1. Number of personal meetings with clients. If you meet if your key clients on a regular basis you will gather the necessary information to improve service and increase client satisfaction. Each partner should have specific goals to meet with clients. Feedback should be shared with all partners and changes and improvement in your service delivery system should be made during the year.

2. Number of client complaints. This could be a key indicator of how well you are serving clients. Just because clients don’t say anything, doesn’t mean that they are ecstatic or even happy. Most clients don’t complain, that just walk away. That is why, one-on-one meetings with clients are so important to gage a client’s satisfaction with your firm.

3. Client service guarantees implemented. If your firm has a client service guarantee, how many of your clients are actually requiring you to honor it. Again, this would be an indicator of how well you are serving clients.

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4. Accounts receivable. Happy clients usually pay their bills faster. There are two measures that you should be tracking here.

4a. First, the number and amount of A/R adjustments. The more adjustments you or a particular partner are making, the more problems you may be having with clients. This may be an indicator that you are not spending enough time with clients discussing fees and your value proposition.

4b. The second indicator is A/R aging. There are two potential issues with aging. One you don’t have an effective collection process in place. Two, service to clients is poor and this is the clients’ way of letting you know. It’s important to know which of the two issues your firm is facing.

5. Percent of client rating firm a 5. When you do a client satisfaction survey, you will want to know what percent of your clients really think you are doing a great job. These are the fives. You need to work on the fours and the threes. These clients are satisfied with your services, but there is a service gap between what they are getting and what your service goal is.

6. Client turnover. This measure definitely indicates how well you are serving clients. A high turnover ratio (the number of clients lost divided by the number of clients gained) may be a sign of serious trouble in the firm, or it may just mean that you are culling your client list in order to get rid of unprofitable clients.

7. Client referrals. This is another gauge of how well the firm is doing in meeting its service objectives. This should be measured monthly. A decline in client referrals over a period of several months is a sure indicator that service quality is suffering in the firm.

8. Share of the client’s wallet. While you may not be able to do everything for a particular client, it is important track the percentage the firm derives from each client’s budget for professional services. Over the life of the client this amount should be increasing. Be particularly weary if clients begin to use other service providers for work that your firm does.

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Client-Centric CPA?

It’s Not Just Numbers Helping a retailer client by looking beyond accounting.

[Editor's note: We've been asking accountants what "client-centric" means to them. Here's one of the many pithy answers we're getting. ]

by June Ball, CPA Owner, North Star Accounting

Many of my business clients are new and very small. They know their own industry, but don’t know who to turn to for things like branding, marketing, signage, health care and business insurance, etc.

I keep what I call a “referral rolodex” in my office. Say a client needs some signs made. I will retrieve from my Rolodex some cards of reputable sign shops in the area that I know well. I make sure the client knows that I know the owners, but by giving them the cards, I am not endorsing any of them. It’s a way I help my clients find good, reputable people they can depend on.

I meet with my business clients about once a quarter to go over their numbers and see if there are any trends developing. Many times business owners get caught up in day to day activities and don’t take the time to step back. We sit down and look at ratios and discuss the problems they are encountering. Then we work to problem solve.

One example, I have a retail client with a shop in a strip mall. Her business was breaking even. Slowly she was building a good reputation. But, all of a sudden, her sales started shrinking. She wasn’t getting many “drive by” clients. It was like people forgot where she was.

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We recognized two problems that needed fixed:

1) Her sign matched the color of the header of the mall where the merchant signage is displayed, and

2) The out lots of the strip mall had new store fronts, blocking her visibility.

Since her lease was almost up, she looked for a new location where there was a strip mall with no out lots. After the move, her sales started to climb back to where they were and now, she’s beyond breakeven; she’s becoming quite profitable. It was a case where the answer wasn’t in the numbers, but in the environment.

Those are my examples of client centric service.

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Eight Ways the Smallest Accounting Firms Compete and Win What Big Firms Can Learn from Sole Practitioners and Small Firms.

“The best independent practitioners have a singular focus on helping their clients achieve their goals,” according to Andrew Sobel, author of the exemplary “All for One: Ten Strategies for Building Trusted Client Relationships.”

“They deliver value at every stage of their work, and they do so as quickly as possible and with ruthless efficiency,” he says.

The most successful independent professionals:

1. Create personal brands by building individual market renown.

They create notoriety for themselves through publishing, speaking, and networking, and by focusing on a core specialty for which they become well known. All too often, professionals in large firms spend years sheltered under their firm’s brand.

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2. Regularly develop and disseminate intellectual capital.

Often, there are just a handful of partners in large professional firms who create all of the intellectual capital, and everyone else feeds off of it.

3. Focus on conversations, not on PowerPoint.

While it is always a good idea to outline your thoughts in writing, creating so many PowerPoint presentations takes a huge amount of time and energy. The best independents lower their threshold for a client meeting. They talk often to their clients, and they have learned how to hold an engaging conversation.

4. Try to achieve success, not perfection.

When you lack resources, you have to focus on delivering a solution that is good enough and works — not on the one that is most comprehensive and elegant.

5. Have learned to eliminate non-value-added activities.

For a solo practitioner, every single activity has to contribute directly to the project’s goals and deliver value to the client — otherwise you work yourself to death and/or end up seriously diluting the time and effort.

6. Take responsibility for their personal development.

Without mandatory training seminars or meetings, independents must really think about the skills they want to develop.

7. Organize around clients.

Large firms must reconcile geography, practice groups, industry sectors, and functional expertise within the same organization structure. Independents are always organized around one simple and essential dimension: the client.

8. Truly act like it’s their money.

For independents, every cent they spend on expenses is a cent that doesn’t go into their pockets (after taxes, of course). It’s a good mindset and a good discipline — often neglected in large organizations.

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The Big Mistake CPAs Make in Client Service How to find new success by shifting your firm’s focus from service-centric silos to client-centric goal-setting. by Rick Telberg

Most accounting firms believe they provide pretty good client service. And most of them are probably right.

But there are other firms that strive to deliver more than just satisfactory service. They are seeking to go a step further, something beyond merely satisfying clients,

something akin to wowing clients. Perhaps they know what Bain & Co. consultant Fred Reichheld discovered in 1995: Even among clients who say they are perfectly “satisfied,” half will change providers anyway. Clearly, customer satisfaction is not enough. Something more is needed.

To be sure, more accountants today are focused on pushing fresh tax returns out the door than on esoteric discussions of client service. But it’s exactly when you have the client’s most ardent attention that you have a real opportunity to vault past mere satisfaction.

Osborne

Most firms are service centric, meaning they focus on the services they provide, i.e. tax, assurance or estate planning. But in too many firms, that means the client becomes fixed in one silo. In other words, if they came in as a tax client, the tax department probably “owns” them.

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Of course, if the client needs an audit, the tax department “refers” them to the audit department.

To completely embrace the client, Edi Osborne of MentorPlus in Carmel Valley, Calif., is telling CPA firms to “stop looking at the client through your services and instead start looking at the client like a client. They have all sorts of needs and desires, challenges and goals. And it’s not all about finance.”

You may already know Osborne from her work with the AICPA — a few years ago — bringing performance-management techniques to CPA firms. Today she’s not saying that taxes and accounting aren’t important, but she is saying CPAs have an under-leveraged opportunity to work with clients to improve operations, strategy, processes and even hiring.

“Everything in business comes down to numbers. That’s how you run a business,” she says. “It’s just not all measured in dollars.”

Many key performance indicators are familiar to accountants, such as receivables days outstanding, inventory turns or return on equity. But accountants can also help clients “drill down to what’s important, to what drives those KPIs (key performance indicators),” Osborne says. Accountants can ask, what are the behaviors and processes that drive the KPIs? They can help clients connect the employee or customer actions that determine the KPI outcomes.

For instance, are orders getting out late because of data entry errors? An accountant informed in process

management can tell. And an accountant can bring a fresh perspective.

In one case, an ambulance company was trying to accelerate its collections. “You’d think that getting the billing out fast would do the trick,” Osborne says. “But that wasn’t the problem. In fact, faster billing actually delayed collections.” The reason? The bills were going to the patient’s address. Not only was the patient in the hospital and not picking up their mail, but the patient wasn’t even the linchpin in getting paid. It was the hospital. So the ambulance company started billing the hospital instead and collections improved.

In a service-centric approach, the tax accountant or the audit partner may never have asked the questions that led to finding the right problem. But with a client-centric philosophy, any accountant working on the account could be observing, listening, questioning and analyzing.

In the end, the approach can lead to greater revenue per client at higher fees with better margins. It may sound like rainmaking, but it’s not about rainmaking. It’s about understanding the client as a whole, not just as numbers in a spreadsheet. With some basic skills and tools, Osborne says, “anyone can be a rainmaker. You don’t need to be a superstar.”

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Five Secrets to Dealing with Unhappy Clients Unhappy clients won’t tell you they have a problem; they’ll simply move their business elsewhere.

So, if a client gives you a chance to repair a bad situation, take it.

Here are a few tips from Maribeth Kuzmeski, author of “The Connectors: How the World’s Most Successful Businesspeople Build Relationships and Win Clients for

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Life,” to keep your business relationships from going bad — and rescue those that have started to sour:

1. Extend a peace offering. Don’t succumb to the temptation to avoid clients when hard feelings are present. Offer an apology and make things right with a gesture as simple as a handwritten note, refund or coupon.

2. Don’t strike back. Your first reaction may be to explain why you are right or why the client is over-reacting. But your chances of keeping that client are much greater if you instead work toward a resolution. Smile, take responsibility (even if you haven’t done anything wrong) and offer solutions.

3. Listen. Clients will listen to reason if you respectfully listen to what they have to say first. Knowing that you are truly listening to their concerns can make clients agree with your suggestions much more quickly.

4. Have a standard service protocol.

Creating standards, procedures and methods of dealing with clients and servicing their needs can really help. Effectively resolving problems with clients makes them more loyal because they see you care about their business.

5. Get feedback. Ask what you can do better or how you can improve. And when a problem has been solved, ask if you handled it to their satisfaction or if there is anything they would like you to have done differently.

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The Secrets of Happy Clients? How to battle client retention problems with client satisfaction strategies. But how do you dazzle a customer these days? by Rick Telberg

With client retention replacing the staffing shortage as the most troublesome issue facing CPA firms, it may be surprising that that so few firms are taking a high-profile, proactive approach to the problem.

Certainly, many firms are stepping up client service levels. Some are creating specialty practices to handle the critical emergency needs of clients in crisis. For example

a number of New York and Palm Beach, Fla., firms have established teams tasked with caring for the needs of clients affected by the Bernie Madoff Ponzi scheme. Many other firms are establishing bankruptcy or restructuring task forces to deal with business clients overwhelmed by the recession.

Still other firms are handling the challenge in everyday ways, with a little more TLC, an extra phone call, a little more analysis into a problem. Yet more are allowing their receivables to age as clients take longer to pay.

Nevertheless, many firms either don’t see the need to react to the client retention issues other firms face, or are choosing to operate as if it’s business as usual.

To be sure, many firms are unfazed. They say they stand to lose clients only to insolvency or dissolution — situations they deem beyond their control. But many might well be advised to worry about client satisfaction because competitive CPA firms are fighting hard for every good, new client they can get.

That’s why some may be astonished about how few CPA firms actually have formal systems in place to gauge client satisfaction issues. According to Bay Street Group’s latest soundings, six in 10 firms have no formal client satisfaction monitoring program. Even more, seven in 10, rely on “real-time feedback” from clients, which, to me, sounds a little like “we don’t ask, they don’t tell.” But two in 10 firms report to me that they do, indeed, wish they had a better system in place for tracking client satisfaction.

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But if you really want to know what clients are thinking, you have to ask them, which is exactly what I’ve been doing. I’ve heard from thousands of CPAs and financial managers on the private side of accounting in business and industry. They may be the toughest critics a public accountant, bookkeeper or auditor could ever run up against. But they are also the most understanding and knowledgeable. Their suggestions and guidance on what makes a CPA-client relationship prosper or fail should be heeded.

“We’re a small company in terms of our industry,” explains a senior finance manager at a mid-sized company. “What we really want is an attentive, service-oriented, reasonably priced firm that appreciates our business. We don’t have that because our parent organization has dictated that we must use the same firm that they use.”

Clearly, this finance manager would not recommend her current CPA firm. She wants a “better quality product,” adding, “At Big Four prices, I shouldn’t have to review in detail to find their errors.” She’s tired of playing second fiddle and wants a firm that “appreciates the business of even the smaller clients and makes sure the smaller clients don’t feel they are taking a back seat to the larger clients.”

Or listen to this Midwestern CFO whose company is fighting for its life. He wants a CPA who can provide “survival skills for a tough economy and market.” This CFO provides only a lukewarm recommendation for his current accounting firm, but he still needs advisers who

can “provide objective insights during these tough economic times.”

CPA Mike Harnish has been on both sides of the table. Today, he is senior vice president and chief operating officer at Portland, Ore.-based Fios Inc., IT evidence sleuths for lawyers. But I’ve known him since the 1990s, when he was a partner at what was then Crowe Chizek.

He says today he’s “fairly likely” to recommend the Big Four firm that services his company, but “I think it depends on the people that get assigned and the complexity of one’s needs.” If you’re a CPA firm who wants Mike’s business, you’re going to have to work for it. For one thing, he says, he’s not easily swayed by traditional marketing and sales. He wants to see real expertise that’s relevant to his business and his challenges. Do your homework and get your “research results published.”

In addition, he’ll compare your proposition based on “affordability, breadth of capability and service” and you’ll need to be ready to point out specific areas in which his company’s compliance procedures can be improved, or where you can help him trim costs or save money on taxes. That’s a tall order. And Harnish may be an exemplary financial executive.

But he’s the type of client every CPA firm should be looking for. You can be sure Harnish’s CPA firm is working hard for the business.

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How Smart Phones Help CPAs Compete A smartphone — like a BlackBerry, iPhone, or Android — handles more than just phone calls.

Accounting firms are finding that a well-managed mobile strategy adds competitive advantage, improves client service and satisfaction, and even helps maintain a sensible work/life balance.

A CPA Trendlines research project is yielding some interesting and useful early results.

For instance, we’ve been asking: “What’s the single most important thing that a smartphone helps accomplish for your firm?”

Here are a few snippets from the comments:

• Expands productivity beyond the normal “8-to-5″—both a blessing…and a curse.

• Allows us to maintain real-time communications. • Client service and responsiveness. • Reduces backlog of phone and email requiring

attention upon return to office. • Can be away from office & stay in touch • Communication with clients • Access to the firm’s lifeline of contacts and

stockpiled emails and voicemails. Keeping those in check allow me to stay on top of them or they are like an unruly haircut.

• Saves time in getting information needed to manage client service

• Access to Outlook calender, email & tasks for improved time management & organization

• Constant communication with co-workers to maintain productivity.

• client response time

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• email and schedule • be in contact with clients and staff • Manage email, be accessible • Faster response time for e-mail questions from

clients • Allows us to be in contact with our clients outside

of the office. • help balance life and work • Stay in touch with office and clients while out for

field work. • Manage and monitor my networks.

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Have You Fired a Client Lately? Why you can’t afford that difficult client — and what to do about it.

by Rick Telberg

Invoices that are paid late or not at all, phone calls on Christmas day to calculate year-end numbers, unrealistic demands and even fraud… Most every accountant has their own story of clients who are more than just difficult.

Let’s face it. We love our clients. That’s why most accountants are in the business. But some clients are just, honestly, nightmares. Accountants have a name for them. They are the clients from hell.

Difficult clients are a problem to firms of all sizes. To be sure, small firms can be most vulnerable to one or two difficult clients. Larger firms generally have procedures in place to manage client acceptance and grading. But I’m also seeing firms of all sizes that are tightening up their

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client acceptance processes and systematically shedding their “D” clients so they can focus on their “A” clients.

Spotting a problem client may not be easy at first glance but when they become a source of nothing but anguish and stress it is time to reevaluate the relationship. In fact, it’s sometimes professional protocol.

“It was a nightmare. Definitely not worth the fees even if they were 10 times the amount I eventually ended up collecting,” said Bryan Kisiel of Connellsville, Pa., when asked about his “client from hell.”

Unfortunately, Kisiel’s experience is all too common. In fact, our research indicates that 93% percent of 153 public accountants surveyed have at least “a few” clients they would like to fire.

The tough part, however, is actually finding the strength or the best way to sever such dysfunctional relationships. Still, 9 in 10 accountants have terminated a client and many have done so at least once in the last year.

Often, the grief just isn’t worth the money. In fact, too many accountants probably worry too much about losing and replacing the revenue than the more intangible costs of stress, aggravation and distraction of maintaining problematic clients. Savvy practitioners focus instead on the peace of mind that can come from simplifying their professional lives.

“Do not focus on the lost revenue from firing a bad customer,” advises accountant Wayne Davies. “Focus on

the simple fact that you’ll feel so much better knowing that you won’t have to deal with this jerk any more.”

“You end up spending so much time and energy putting out the fires they cause,” Davies says. “Do you really make money on them when you factor in the value of your time?”

That’s the situation Jon Herberg of Billings, Mont., found himself in with a small business client from hell: “The wife is a woman from hell. The biggest complaint I have is that she never hears what I have to say. “Whether it is tax planning or any conversation, we seem to be unable to communicate. “I take good notes at our meetings and there has not been a time when something is misunderstood and she has not been afraid to tell me I screwed up because, no matter what I have in my notes, she could not be wrong. I dread every meeting with her. During tax season, I know I should fire her but hate to do so when they have not had time to find another accountant. “The rest of the year I keep hoping she has changed and think I need to try harder to get along. “Their annual fees come to less than $400 a year, not a big account.”

“I once had a client that was a very mean old lady,” said Marc C. Phelps, CPA, of El Segundo, Calif., with no offense meant to the old or the lady-like – just the very mean. “She used to yell at her accountants for every little mistake and any misunderstanding. “Picture a little old 82-year-old lady that speaks like a sailor.” (And no offense to sailors.)

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And then there’s the client who just didn’t understand personal boundaries or even common courtesy. “He was “handsie’ with his bookkeeping staff in front of me, discussed his extra marital affairs around me and bragged about sleeping with his son’s girlfriend,” said Teri Ann Kruse of Portland, Ore. “He wouldn’t give me signed copies of documents and I had a hard time getting him to sign engagement letters.”Â They parted ways in less than six months, but, Kruse continued, “My client from hell had residuals.”

“After getting rid of him,” Kruse said, “his records were subpoenaed and I was visited twice by IRS agents and attorneys from the U.S Antitrust Division of the Department of Justice.”

Sherry Craighill, of Oakhill, Va., described her client from hell as a “type A on steroids.”

“The narcissistic micro-managing “˜I can do your job better, faster, smarter than you,’ ” Craighill explained. They “demanded constant and immediate attention by phone, email and frequent unscheduled visits.”

A problem client may not be easy to spot at first glance. But here are a few types of clients that are sure to cause trouble:

• The bargainer: Wants to negotiate price on everything. And then they question every detail in the invoice.

• The needy: Constantly makes new demands, and then drowns you in e-mail, phone calls and office

visits. And it doesn’t stop on evenings or weekends.

• The whiner: This client is a chronic complainer and may even get aggressive or abusive.

• The unreliable: This client is always late to meetings, cancels meetings at the last minute or even fails to show up at all.

I’m sure you’ve met at least one of those characters.

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Survey Results: Clients From Hell

Some new polling data indicates that 93% percent of accountants surveyed have at least “a few” clients they would like to fire. How many of your clients would you like to fire?

• Most of them: 1% • Some of them:13% • A few of them: 77% • None of them: 7%

Still, 9 in 10 accountants have terminated a client and many have done so at least once in the last year.

When was the last time you fired a client?

• Never: 10% • More than a year ago: 28% • Within the last 12 months: 33% • Within the last 30 days: 22% • Within the last week: 7%

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Winning a New Client at “The Hot Chick Accounting Firm” What are you known for?

Great businesses start with great positioning. Think: Coke is “the real thing.” Avis, “We try harder.” New York Times, “all the news that’s fit to print.”

What do you do if you’re a firm of women accountants of a certain age?

How do you compete against bigger firms with fresher faces?

Here’s how, from Betty, an accountant in Cincinnati, Ohio, who tells the story of a big client win on her blog.

It’s a fun and useful story…

One of my staff and I sat in front of a roomful of white haired gentlemen and charmed them into hiring us. We were explaining to them that one of the reasons they should hire us is because every person in our firm is over the age of 35 and would be able to focus on their work instead of worrying about their fantasy football pics or their MySpace page. One of them joked and said, “Oh, so you’re the senior citizen accounting firm.” To which I

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countered, “Actually, we like to think of ourselves as the Hot Chick accounting firm.” They all laughed and at that point, I think their decision was made. It might also have had something to do with the fact that we are respected specialists in their industry, are just 15 minutes away, and the other firms were out of town and not as focused on affordable housing.

But I really think it was the flirting. I do well with older men.

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3 Reasons to Define Your Ideal Client

Defining your ideal client is key to success as a CPA. According to Joey Brannon, CPA, EA, here are the top three reasons why it’s so important:

1. Having a clearly defined customer helps you understand what products and services you should be offering.

2. Having a clearly defined customer allows you to be profitable when pricing your goods or services.

3. Having a clearly defined customer allows you to feel that you’re making the right decision when you turn down the wrong kind of sales.

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The 10 Basic Ways to Boost Profits at an Accounting Firm The new practice management discipline. by August Aquila aquilaadvisors.com

No profits no mission, as one of my partners is fond of saying.

While leadership, balanced life, outstanding client service and efficient processes are critical for success, they mean nothing if the firm is not sufficiently profitable to make investments for the future and compensate performers.

I want to focus on ten ways to make your practice more profitable.

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These ten areas form the basis of my Practice Operational Review.

1. Enhance revenue.

There are several ways to boost the firm’s revenues. Obviously raising rates is the easiest. Rates should be adjusted for inflation at least yearly and whenever someone is promoted. Another way to increase revenue is to provide more valuable work to clients. This requires that you and your people develop new skills and perhaps move into new or different niches. For example, firms that have gotten into litigation services or business valuations have been able to augment revenues because they can charge more for these services. Finally, start doing more true value billing – i.e., throw away your timesheets and bill on what the value is to the client.

2. Control engagement cost.

An important element in your profitability is engagement management – having the right people on the job, giving everyone budgets, having efficient systems to move the work through and monitoring the entire process. Write downs usually point out how well you are managing an engagement. There is nothing wrong with a planned writedown; it’s the unplanned ones that suck the profitability out of a firm.

3. Deal with unprofitable clients and services.

You must know which clients and services are profitable. The last thing you want is to go after more unprofitable work. There is an old joke in the retail industry that goes

like this. Salesperson: “Sir, I believe we are losing a $1 on each shirt that we sell.” Manager: “Well then, we will just have to make it up in volume.” Take each one of your clients (or client family) and determine the gross profit margin. For each client that has a gross margin of less than 65%-70%, ask yourself the following questions:

• How can we raise the margins on this client? (Higher fees or reduce cost)

• Is there another person in the firm who can service this client for efficiently?

• Is there another reason to keep this client?

4. Address under-performing partners and staff.

Under-performers take time and energy away from more important activities in the firm. That’s why it’s critical to have a proper performance management and evaluation program in place. Don’t accept non conformance or mediocrity.

5. Examine your marketing efforts and marketing ROI.

Is your marketing targeting the right clients? Too many firms think that anyone who breathes is a potential client. No matter what size firm you have, it’s important to know what your ideal client or clients look like. If you have a tax practice that works with high net worth individuals, than someone with an adjusted gross income of $75,000 probably is not a target for your firm. And don’t use the excuse that young professionals can learn on these clients. It’s better that they learn from you. Do you think

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that blue chip investment banking companies take small clients just to have their people develop skills?

6. Improve utilization.

Productivity or utilization is still a key to firm profitability. One way to increase productivity is by assigning weekly goals to everyone in the firm. Utilization has a lot to do with firm management. Higher the utilization usually means that the firm is doing a better job of managing its personnel.

7. Reduce overhead expenses.

Expenses always have a way of creeping up. Every two years or so, re-examine your overall expense structure. What are you getting in return for each expense? Rather than just adding an inflationary amount to your expenses, do next year’s budgeting using a zero base approach.

8. Invest in technology.

While technology is a major expense item in most firms, it can also be a number one driver of profitability. The more you can move towards a digital office the more efficient your processes become and the more you will save on each engagement.

9. Focus.

We have found that firms that focus on fewer goals each year are more profitable than those that have many goals. The reason is simple. Fewer goals mean that you can achieve more of them with excellence. Achieving goals –

client service, profitability, systems, etc.- with excellence drives profitability.

10. Keep Score.

Finally, those firms that are more profitable are those that keep score and let everyone in the firm know how they are doing. Here’s what to track – revenue and profits, number of new clients, number of employees who have developed new competencies and number of implemented client service plans.

Become disciplined about running your firm. It’s usually the basic things that you need to do, day in and day out to put more on the bottom line. Remember no profits, no mission.

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In War for Clients: Knowledge Alone Isn’t Enough CPAs must provide wisdom. [This was submitted by a director-level professional at a mid-sized West Coast CPA firm.]

In our experience, it’s all about niches and specialized expertise.

The deeper and the broader our knowledge in the industry/services/critical issues that are RELEVANT to the client or potential client, the more attractive we are as an advisor.

It’s not just about compliance services, or about knowledge of facts and rules and regulations. It’s about applying that relevant knowledge in ways that help to avoid pitfalls, and provide opportunities and value to the client as a result of the wisdom we can bring to the relationship.

Some of this is about out messaging. If you have depth in real estate, for example, refer to your “real estate practice” and package the services you provide with a focus on the needs, issues, and terminology that are RELEVANT to a real estate client.

If I had to sum it up on one word, it would be RELEVANCE.

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SURVEY RESULTS: Clients Make the Difference The recession may be the single biggest factor affecting professionals But, in the end, it’s all about clients. Ask a CPA, “What the biggest difference this year?”

And, collectively, they’ll draw you a picture that looks like this:

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No doubt, the deepening recession is the biggest problem for CPAs this year.

By comparison, last year at this time, the economy was a major problem for only about 26% of professionals.

Clients are coming in later than usual, usually more disorganized and worried about covering the fees. Professionals are racing to stay up to date with all the breaking news and worrying about billing and collections.

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What’s in Your Firm’s Stimulus Plan? Practical steps to move you beyond the crisis.

Practice consultant Tracy Crevar Warren says in the key components for your firm’s stimulus plan should include:

• Strengthened client service o More contact o Do a better job of being a “trusted advisor” o Provide additional counsel/services to meet

needs resulting from economic downturn o Reduce commodity threat o More educational offerings – seminars,

Webcasts, podcasts o “Crisis center” resources and Web sites

• Expanded/reallocated service offerings o Outsourcing o Turnaround o Bankruptcy o Debt restructuring o Forensic accounting o Cash management & budgeting

• Staffing o Retaining new talent, while others are

eliminating it and/or not filling empty positions

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• Continued/enhanced niche development

• Better analysis and litmus tests for spending o This includes marketing

• Creative, less-expensive alternatives for traditional marketing tools

o Electronic versus paper o Webinars o Podcasts o Blogs o Search Engine Optimization (SEO)

• Proactive business development initiatives o Retaining business development

professionals o More focused initiatives o More face-to-face meetings o Continued referral development o Better tracking

Tracy Crevar Warren, president and founder of The Crevar Group, advises professional services firms striving to grow and maximize performance. She is an author and frequent speaker on various growth, business development, and marketing topics for local, regional, national, and international audiences. Warren can be reached at 336-889-GROW (4769).

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Delighting Clients What do accountants talk about when they talk about…? When CPA Trendlines asks practicing accountants how they “delight” clients, one word pops up more than any other: “personal.”

Clearly, clients respond to “financial” “planning” “service” with “questions” answered about their tax “return” using the “personal” touch.

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About CPA Trendlines CPA Trendlines at http://cpatrendlines.com is the online home of the freshest research and analysis in the tax, accounting and finance professions. Here you'll find the data and analysis you can use for your practice and your career, plus exclusive research, insights and commentary on the most pressing issues and fastest-changing trends.

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About Bay Street Group Bay Street Group LLC provides custom research, marketing, communications, strategic consulting, publishing and digital media for the professional tax, accounting and finance community.

Delivering state of the art services:

> Research > Analysis > Communications > Strategic Planning > Lead Generation > Alliances > Business Development

With know-how and resources: > Experience, Insight, and Execution

Strategic Planning

Bay Street Group’s unique and powerful perspective examines the finance and accounting profession from all angles providing unique insights sought after by:

> CPA firms > Professional associations > Financial executives > Partners and suppliers to the profession

Marketing Communications

Bay Street Group’s expertise cuts across multiple media platforms and a wide array of industries, associations and products. Bay Street Group consults to world-class brands… international, national and state associations… as well as local, independent CPA firms.

> Print and electronic newsletter assessment, enhancement and management > Product launches > Direct marketing sales strategy and support > New media properties > Website architecture and content

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About Rick Telberg Rick Telberg is a veteran analyst, advisor, commentator, editor and publisher. He brings a unique background and perspective to research and advisory services for the professional services community. Mr. Telberg may well be the accounting profession’s most widely-known commentator through his long associations with the American Institute of Certified Public Accountants, Accounting Today magazine, and today, CPA Trendlines.

As an expert in management, marketing, media and e-commerce, Mr. Telberg has served as Senior Editorial Director of Pro2Net Corp., now www.smartpros.com, and as Director of Online Content at CPA2Biz, www.cpa2biz.com.

Previously, Mr. Telberg served as the early Editor-in-Chief of Accounting Today, and as Vice President/Group Publisher at Thomson Financial (now SourceMedia), overseeing Practical Accountant, Accounting Technology, and what is now www.AccountingToday.com.

Mr. Telberg was presented with a special citation by the National Society of Accountants for service to the profession and has served on a variety of boards and steering committees, including BKR International and the IBM Small Business Advisory Council. He is a graduate of New York University.

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Contact

Rick Telberg Bay Street Group LLC PO Box 5139 E. Hampton, N.Y. 11937

Phone: (631) 604-1651 (U.S./Eastern Time) On the West Coast: (818) 835-2374 Fax: (425) 988-7736 Skype: rick_telberg

Email: [email protected]

Documents

Client Service Idea Book...Client Service Idea Book Guidance, Tips, Strategies, Tactics, ... • Go the extra mile on the current engagement • Increase the amount of client contact