Do your timesheet procedures reduce new fees?

Over the years I’ve noted that accountants typically devote more time to networking with contacts and strangers (effectively) than they spend helping existing clients.

We’ve all heard the marketing gurus explain that it’s easier to generate additional fees from existing clients than it is to secure new fees from new clients – people with whom we have no prior working relationship. And this makes sense doesn’t it?

All other things being equal, a client who already knows us, likes us and trusts us is more likely to agree to pay for additional services if we take time to find out their needs and problems, than is a stranger.

So why do so many accountants spend so little time ‘networking’ with existing clients? Instead they spend time at marketing meetings and networking with contacts and prospective clients.  Much of this happens outside of the recorded timesheet day of course.

In my experience this happens because of an edict (or simply a perception) that:

• all time spent with client must be recorded on the timesheet; and
• all time charged to clients on timesheets should be recovered.

Quite rightly accountants don’t want to be pressured into billing clients for ‘marketing and networking’ time. Equally the accountant wants to avoid having to justify write-offs or unbillable client time.

Such attitudes are ingrained in the way that many firms of accountants are structured. As a result existing clients feel that no one cares about them, that the clock is always ticking and that they might as well talk to someone else about new issues, problems and challenges.  In effect the accountant misses out on additional fees as he or she misses opportunities to find new ways to help their clients. And the accountant literally wastes time networking with strangers because this is more acceptable within the partnership than spending prospecting time with existing clients (without putting time on the clock).

I suspect this is less of an issue in the case of sole practitioners – unless their timesheet habits have simply been carried over from when they used to work in a larger firm.

Incidentally – when you spend time with clients – it’s best to focus on finding out from them what’s troubling them at the moment rather than trying to sell to them. Find ways in which you could help them and whether they would like that.

What else could you do to reduce the downsides of your timesheet procedures?

Networking strategies for accountants

Many accountants attend numerous formal networking events on a regular basis.  This can be very time consuming and it will be a waste of time if you set out with the intention of winning new clients and securing new leads from every event that you attend.

Effective networking involves developing profitable relationships and that takes time.

Do you have a networking strategy?

One approach is to find ways that can help speed up the process whereby new acquaintances move up the tree from simply knowing you, to liking you and trusting you.

And one way to do this is to focus on securing just a small piece of one-off work whereby you can prove yourself before seeking to establish a longer term relationship built around recurring compliance work.

What’s your networking strategy?

10 top networking tips

To commemorate the fact that this has been International Networking Week I thought I’d share my ten top networking tips for accountants. I’ve addressed the subject many times before on this blog – most recently in the context of online networking websites such as Twitter, facebook and LinkedIn.

You can access all of the earlier posts, tips, observations and advice here by clicking on this link re: Networking and scrolling down the page.

Networking is not something covered by our professional training. But it has become a crucial part of professional life – other than for those lucky people who have a constant stream of high value work referrals of course.

Networking is one of the key elements of being a good ‘finder’ of new work so it forms a key part of my mentoring programme for ambitious accountants. I have extracted the following tips from that programme and hope that you will find them useful.

1 – Get in the right state, not in a right state. Keep in mind that you want to gain some value and benefit from the time you are committing to attending the networking event. You’ll need to look friendly and relaxed if you want people to be comfortable talking to you.

2 – You will be more interesting if you are more interested. We have two ears and one mouth so we should aim to listen for twice as long as we speak. The people you meet will be more comfortable talking about themselves than listening to you.

3 – Networking is about building relationships not about ‘getting work’. People buy professional services from people they know, like and trust. You’re unlikely to meet someone who just happens to need your services that day. You will need to keep in touch and to demonstrate that you can be trusted. For example by promising to follow up with an email or supplying some valuable information in the next day or so. Then ensure you keep your promise and create further opportunities to keep in touch thereafter.

4 – “What do you do?” Don’t pigeon hole yourself as yet another accountant who acts for small businesses. Practice answering the question in such a way that ensures you are remembered specifically and distinctly from all of the rest of your profession.

5 – Focus on a niche not a list. Even those new acquaintances who are genuinely interested in you will quickly switch off if you try to identify all of the things you do or could do for clients. Equally they won’t remember the list so you’ll be in danger of making yourself more forgettable. In the first instance you need to focus on a key area/topic no matter how broad your expertise and experience.

6 – Flirt as you network
F is for FUN
L is for LAUGHTER or at least having a smile on your face
I is being INTERESTED in what other people have to say
R is RESPONDING to what other people are saying through conversation
T is TALKING appropriately not extensively about yourself.

7 – You’re not alone if you feel alone. There will always be someone else standing alone who will be so pleased and relieved if you go over and start a conversation with them. The chances of rejection are tiny. Simply introduce yourself, ask them their name and what do they do.

8 – Listen to what people say; don’t try to sell. You can only solve people’s problems or help them make the most of opportunities if you know what these are. That means listening and absorbing, not talking. If you listen well they’ll trust you and if you ask the right questions, you’ll uncover all the clues you’ll need in order to decide if you have something to offer them.

9 – Get the other person’s name and business card. Don’t offer your card until you’ve got theirs; this avoids you seeming pushy. If you didn’t catch their name when first introduced, ask again. No one objects to repeating their name to someone who evidently wants to remember them.

10 – Follow up afterwards. Having given up your time to attend the event make sure it is worthwhile by keeping your promise to follow up with each of the people you met. Even if you think that they may not be the most valuable contact remember that you don’t know who they know who could be interested in what you do.

These are just ten of the many issues that are commonly misunderstood when professional service providers go to networking events. Most of the points may well be common sense – but that doesn’t mean they are always common practice.

Social Networking for Accountants (part one)

This is the inevitable follow up to my recent posts: Twitter is not for accountants, If you’re not on Facebook you need to be on LinkedIn and Blogging myths for accountants.

I am probably one of the most active UK accountants on what are commonly referred to as ’social networks’.  I prefer the term ‘online communities’. Some have more of a social than business focus. Others are evidently only for business related networking. And some of these miss the fact that professional services (such as accountancy services and tax advice) are provided by INDIVIDUALS, not by businesses.  And People buy People.  The brand message, especially of the bigger firms, MAY provide a degree of comfort and reassurance but in the main the ’sale’, the engagement and the services will be attributed to individual advisers.   RELATIONSHIPS are not built up overnight – whether in a business or a social context.

That’s one of the reasons why I am so excited by the developments in online communities. It’s also one of the reasons why I started my own in 2007 (The Tax Advice Network) although it’s not as sophisticated as the more mainstream communities.  That’s deliberate as I’d like to think that I know and understand my main target audience (accountants in practice in the UK).  I speak to thousands of them at conferences and seminars around the UK each year. I don’t sense very much real interest (yet) in online networking and online communities.  When it happens I’ll be ready for it – or maybe I will inspire it?!

For the moment there are a few sites that facilitate and encourage accountants to post blogs  (but see my expose of Blogging myths for accountants), to comment on current news threads and to ask and answer technical questions.

I’ll write about these in a subsequent blog. I’ll also discuss and highlight some of the non-accountant specific business and social online networks and how accountants could benefit from becoming more involved with these – and how to do so without wasting loads of time.  But there’s no rush. None  will become mainstream for accountants in practice in the UK in 2009 (for much the same reason as to why Twitter is not for accountants.

What else would you suggest that I address on this subject?

Twitter is not for accountants

A friend suggested I should write a piece about Twitter for accountants as I’m increasingly active on Twitter. Surely then I’m well placed to explain what Twitter is and how accountants can benefit from it.

Instead let me explain why I think that Accountants really don’t need to bother with Twitter.  This is much the same approach as I adopted recently when I wrote about Blogging myths for accountants.

Let’s be clear I am NOT against any of these new communication techniques. Far from it. I love blogging (this is one of three that I write regularly – see links in right hand column of this page). I’m enjoying Twitter and have benefited in a number of intangible ways as a result thereof. I’ve explained how I use it on a separate page of this blog.  I know dozens of people who tweet regularly and I have over 300 followers on Twitter (at the time of writing).[edit: Now 600 at 29 April]

But I also understand the accountancy profession.

Accountants

Whilst other commentators may seek to encourage accountants to try new technology, to experiment and to explore new forms of communication I adopt a different approach. I accept that the vast majority of accountants do not apsire to try out these new ideas. They don’t think many (any?) of their clients or target clients are using such tools. They don’t have the time to experiment and to test new ways of doing things.  They don’t perceive the need to do these things.

And actually – I think they’re right. There is no pressing need for them to do so.

Yes, there are ways that accountants COULD use and benefit from Twitter .  Yes, they MAY find ways to use Twitter to help them build their practice and Yes, to do so would put them ahead of the field.

But, will being on Twitter help them avoid client losses? No.

Will it help them to provide pro-active advice to clients? Unlikely

Will it help them to secure more profitable clients of the type they seek?  No faster than any other marketing activity and it’s even less area specific than blogging.

Will it help them to make more money or to increase their profits? No.

Will it help them solve their succession issues? No

The bottom line is that Twitter will not do any of the things that accountants are most concerned about at the moment. As such I cannot advocate the idea that they should explore Twitter as a business tool.

What is Twitter?

I should explain that Twitter is a free online social networking and micro-blogging service that allows its users to send and read other users’ updates (otherwise known as ‘tweets’). Each post or ‘tweet’ is limited to 140 characters in length.

Updates are displayed on the user’s profile page and delivered to other users who have signed up to receive them by ‘following’ people in who they are interested.  Users can also send and receive tweets through third party web based applications, iphones and Blackberry devices.  Many tweets contain links to web pages and blog posts.

Anyone with access to Twitter (and one of the third party applications that make it easier to use and understand) can follow the flow of messages and comments, contribute, reply or simply keep up to date.

Regular readers will recall that i recently posted an item: If you’re not on Facebook you need to be on LinkedIn. It’s worth noting that, unlike the Facebook status updates, tweets can be directed at specific twitter users, people tweet much more often than they update their Facebook status, and it is much more acceptable to follow people you have never met on Twitter than it is on Facebook.

For more on Twitter (which is only 2 years old), have a look at this recent article from the Times by Sathnam Sanghera.

So why do I use Twitter?

For the same reason as many other people. I’m experimenting, testing, having fun. I’m not in practice as an accountant. I use it to promote my business activities, blog posts and seminars. I use it to keep in touch with people, to learn from others and to find interesting people with whom to connect.

Twitter has a number of potential business benefits to me. But none that I think would justify me spending time on Twitter if I were still in practice. I have explained my approach on the special Twitter page of this blog.

Conclusion

I have a number of ideas as to who does and can gain most benefit from Twitter but none of them are remotely connected with accountants in a business capacity so I won’t post them here.

If you are an accountant and you’re experimenting with Twitter do please get in touch, equally if (despite the tenor of this piece) if you decide to try it out. And of course if you disagree with my perspective please add your views as comments to this piece.

If you’re not on Facebook you need to be on LinkedIn

This is my advice to all accountants in business and to those in practice who could face redundancy at some stage in the future.

My reasoning for such advice became clear when talking to my son and his friends on their return from University for the holidays.

A significant majority of the current twenty-something generation have Facebook accounts. When they bump into old friends or meet new people they don’t exchange phone numbers, addresses or business cards(!). They simply undertake to link up on Facebook. This generation instinctively understand how to maintain and build networks. They are networking before they need to do so for business purposes. In the 21st century your network is your key to the future.

Through Facebook the younger generation has the facility to remain in touch with or to get back in touch with all their friends from school, from college, from Uni and their colleagues when they start work.  I have written a number of posts previously on this blog about Facebook which is principally a ‘social’ networking website.  It’s not the exclusive domain of the younger generation and a significant proportion of ‘users’ are over 35 (or even over 50 as I am!).

LinkedIn, unlike Facebook is largely a ‘Business’ networking website. I’m always amused when commentators describe them both as ‘social’ networks.  I think this confuses people who are unfamiliar with them and assume that they are very similar.  A more accurate collective noun is ‘online networks’.

I heard about an accountant today who is between jobs. The company he used to work for as FD has been sold and he’s now looking for a new role. He may have a strong offline network of business contacts on whom he can rely to help him find a new job/opportunity. In the current economic climate this may not be sufficient.

I would encourage him and anyone else without the perfect offline network to register on LinkedIn for the following reasons:

• You can put your generic CV ‘out there’ showing your career history and key skills;
• This will make it easy for you to be found by the recruiters who use LinkedIn to source candidates to fill vacancies;
• You can reconnect (online) and remain in contact with ex colleagues and other business contacts – ie: build and enhance his network;
• You will have a business environment in which you can communicate without using an unprofessional ‘personal’ email address and as distinct from the Facebook ‘fun’ environment;
• You can be found online by new contacts who you meet on a day to day basis;
• New contacts can get in touch with you without having to rely on a scrap of paper containing your scribbled phone number and email address.

Better than this would be to register on LinkedIn before your job/role goes. The additional reasons for doing this are:

• Your profile can include reference to your current role as your current role;
• You can get to grips with the LinkedIn website and features before you NEED to use them;
• You can build your reputation as a helpful person before you start needing help;
• Those who try to use any online network solely for what they can get out of it will be less successful than those who seek first to contribute to the network.

Readers of this blog who are registered on Facebook or LinkedIn – or who register on them are welcome to look me up and connect with me on those networks.

And if you are on LinkedIn and feel there are other reasons for our fellow professionals to register a profile there, please add your comments below. Equally if you disagree, please provide a contrary view.

How accountants can beat the recession

Some readers of this blog will be aware that I recently created a new seminar for accountants:  Mastering the credit crunch – Your practice, your advice, your future.

During what was a highly practical and commercial half day I suggested that the credit crunch (or recession as now seems to be accepted as a more accurate description of the economic climate) presents new challenges and new opportunities for accountants.

Simply stated, if we carry on doing what we’ve always done we will probably be LESS successful than in the past. Why? Because more of our clients will be suffering financially and this will impact on their willingness and ability to pay us and to stay in business. Our fee incomes and profits will fall unless we do things differently.

Feedback from the hundreds of accountants who attended the seminar was more positive than I had previously dared hope.  And I will shortly start sharing with the attendees the follow up feedback that is still being collated.

In the meantime I have no plans to repeat the seminar so am now  making the slides and notes available for download through the Tax Advice Network website.

Referral marketing for accountants (part two)

In a recent post I introduced the concept of referral marketing for accountants and set out the main reasons why many accountants don’t explore this low cost marketing technique. In this post I’ll highlight some of the key issues and in part three I’ll address explain ways to overcome any reluctance to adopt this approach to seeking new clients.

So – why is that so few accountants have embraced the concept of referral marketing? By which I don’t simply mean asking clients who they can think of from amongst their friends, colleagues and others they know who might be worthwhile prospects for the accountant. No, I’m more focusing here on encouraging happy clients to know that you encourage and value referrals. In the final part of this series I’ll suggest that there are other people who could support your efforts to secure more clients through referral marketing – other professionals and suppliers to your target clients who will pass on your name (refer you) when the opportunity presents itself.

Some people undertake referral marketing without a specific plan or focus. I’m also seeing an increasing number of accountants who include a reminder that they grow through referrals as a ‘ps’ at the end of letters and emails. This can work well but it’s best if both the accountant and the recipients of the message are clear as to what sort of referrals are sought. Does your firm have a focus? A specialism? Something that will help people to refer to you as being distinct from all of the other accountants they know.

Which of the following 3 firms would you want to be with if clients from each of them were talking about you and two others to a friend who wants a recommendation to a new accountant?

“I’m pleased to recommend my accountants, ‘Wee Count Alot & Co’ who’ve looked after me for years”

“My accountants are great as they’re always saving me tax”

“I just let my accountants sort everything out for me, they save me tax and seem really focused on issues that matter to [businesses like mine]”

At least the first one knew their accountants’ name but the endorsement (referral) wasn’t particularly strong as compared with the other two, was it?

So one key action is to consider how you want to be described, what you can do to influence that and also to consider whether you intend to focus on a specific client type or service area. Until you are clear as to what you’re seeking in terms of referrals you are unlikely to get them. Much the same as shooting an arrow in the air is unlikely to secure you a bullseye if you have no target it mind.

Referral marketing for accountants ( part one)

Many accountants like to think that they secure most of their new clients through ‘word of mouth’ recommendations – often from existing clients.

I wonder how much of that is what I might suggest is ‘accidental’ word of mouth marketing. It happens at a sufficient rate to balance out the odd client loss. But it’s rarely part of an organised marketing strategy. For example do your clients know that you look to them to refer new clients to you? Do they know the sort of clients you are specifically targeting? Do YOU know what you’d like your clients to say when they talk about your firm (beyond relaying their positive views about the service, people and fees)?

I’ve been collecting reasons as to why many accountants don’t ask clients for referrals. Could it be because the accountant:

• thinks their clients won’t know anyone suitable to be a client;
• doubts that their clients will ever meet anyone who would be a good client;
• hasn’t thought about it?
• prefers to deal with complete strangers who have no preconceptions about the firms;
• thinks it’s unprofessional to ask clients for referrals;
• is afraid that clients might refuse to refer anyone as they don’t rate the accountant.

I was talking to an accountant in Cardiff yesterday who ONLY takes on new clients who are introduced by existing clients. If you don’t know one of his clients you won’t become a client. He spends nothing on adverts – although he does have a simple website to support his client’s referrals for when prospective clients want to know more about him and his firm. He has ten staff by the way.

I’ll address some of the reasons listed above in a subsequent blog post. In the meantime, let me ask – Are there any reasons I’ve missed?

Being the ‘value add’ at someone else’s seminar

This is something that I did last week and it occurred to me that ambitious accountants could probably do much the same thing too.

Let me explain.

I was invited by Amitabh Natekar to be the guest speaker at a seminar he was organising for an audience of accountants.  The other speakers were William Parker, of AccountsIQ and Anant Govande of Offshore Accounting and Taxation Services Private Limited. (OATS). They were speaking about the benefits of online financial accounting software and of outsourcing accounting and related services to India. I was simply asked (and paid) to attend as an independent industry figure and to share my views as to the concepts generally. If possible to help remove fears and doubts. I was very impressed that I was not pressured or expected to endorse either of the services as I knew nothing about them before the event.

At the start of the seminar the audience (who knew I had been invited to speak) were reminded that I was there as the ‘value add’ to ensure that they benefited from their attendance even if they had no interest in either of the services that were being explained and promoted.

All seemed to go well. I received positive feedback and thanks for my talk. It ended up being partly what I had prepared beforehand and partly inspired by what I had heard from the earlier speakers. By all accounts the audience and my sponsors (for want of a better word) were all very pleased and we chatted for a while afterwards.

So, do think about your clients and especially those who present seminars and promotional events to increase awareness of their products and services. Could you offer to assist in some way? Maybe by making your office premises available for an event. This is a great way of enhancing awareness of your firm, of getting value from any large open space that is suitable for such events, and of getting in front of people who could be prospective clients.

Do you have free newsletters you could provide? Promotional postcards that attendees could use to indicate a desire to be added to your mailing list? Would you be up for an opening welcome speech? Could you act as host/MC to introduce the event and add a touch of gravitas?  Could you offer some headline tax and business advice relevant to the audience?

This is one of those business promotion ideas for accountants that you don’t often come across.  It’s low cost and potentially very worthwhile.  If you give it a try, do let me know how you get on.