As 2012 dawns here are 10 New Year resolutions that I would encourage ambitious accountants to make. This list has already appeared on AccountingWeb where I included links to articles on that site that explain each of the ideas in more detail. In the list below I have replaced those links with references to related posts on this blog:

1. Reducing the January rush

I will take responsibility for allowing so many of my clients to delay sending me all the information I need until January. I have had enough and will start planning now to stop this continuing year-after-year. (See ‘The January tax return rush is your own fault‘).

2. Billing

I will release cash by reducing my lock-up to 60 days through more prompt billing and applying my standard credit terms whenever clients fail to pay on time. (See ‘10 key actions you need to take when starting an accountancy firm’)

3. Services

I will be more open-minded and introduce one new service for my clients this year – over and above the recurring compliance services I have always provided. This will enable me to help my clients with their businesses and, at the same time, to become more profitable myself. (See ‘Not all Accountants are business advisers’)

4. LinkedIn profile

I will add a photo and an up-to-date summary of my current experience and abilities to my LinkedIn profile. This could make all the difference whenever someone is checking me out online: e.g. a prospective client, a prospective referrer or advocate, an ex-colleague or ex-client. (See ‘LinkedIn for accountants (part three)’).

5. Twitter

I will look into whether tweeting might be useful or fun. If I decide to give it a go I will check out how to make Twitter work for me. I will avoid posting puerile and self-promotional messages as these will not help me or my practice.  (See ‘Is twitter for me?’)

6. Alliances

I will establish a business alliance that will help my practice and my clients. Possible alliances could relate to any area of specialist expertise that some of my clients might need or I could form an alliance with a complementary service provider. We would learn how we can help each other’s clients and then agree to refer clients to each other. (See ‘Do you ensure your clients get the best advice or just your advice?’)

7. Plan

I will create a one-page marketing and business plan setting out what I want to achieve in the practice over the next year and what I will do to make this happen. (See ‘10 key actions you need to take when starting an accountancy firm’)

8. Talk with clients

I will make appointments to speak with all of my best clients within the next three months, just to see how things are going for them. Many of these calls and meetings will lead to those clients asking me to provide additional advice and services – that I can bill them for.  (See ‘What do you say when you ‘Keep in touch’?’)

9. Dump the duff clients

I will stop complaining about my three worst clients and will encourage them to find new accountants within the next few months. I will replace them with three new clients as I deserve to work only with people who appreciate what I do for them.  (See ‘Ditch the duff clients’)

10. Mentoring group

I will join a local mentoring group for ambitious accountants where I can learn from my peers and enhance my business and personal (non-technical skills). The group will help motivate me to keep all of my New Year resolutions. I also know I don’t have a monopoly on good ideas and I want to make 2012 the year that I learn to become more effective. (See ‘ What does CPD really mean?’)

What resolutions are you making as regards your practice this year?

What do the initials SME mean to you? Do they refer to small local businesses? The official Government definition, drawn from the EU definition and used for determining which businesses need an audit for example, is clear. Small and Medium-sized Enterprises account for over 99.9% of all UK businesses*

Any initiative that purports to focus on SMEs is not focused at all – unless everyone involved understands the initials to mean something more specific and all agree on what this is.

So I am a touch disappointed to read that the new ICAEW Business Advice Service is branded as being for SMEs.  That apart it’s a great move by the ICAEW to help fill the ‘advice gap’ left by the government’s decision to close Business Link.

It highlights the services available from Chartered Accountant members of the ICAEW, and demonstrates their commitment to economic growth by offering one initial consultation at no charge to SMEs and start-ups on the full range of business issues. It is intended to clearly differentiate ICAEW members from unqualified accountants, to highlight the services offered to SMEs by member firms and help introduce new business to members. Full details here: businessadviceservice.com

If I were still in practice I’d register to be included. It’s a branding exercise more than anything else as most member firms have long been willing to hold the initial no-obligation meeting with prospective clients – of whatever size.  There doesn’t seem to be any obligation on members to do anything different from the past.  So it’s a simple win:win for everyone.  Especially as ICAEW is launching a new advertising campaign promoting ICAEW Chartered Accountants and promotion of the Business Advice Service will run alongside this. This will include national and local media to ensure coverage across the UK.

What do you think?

*SME statistics from the Dept for Business Innovation and Skills

 

I’ve just seen a report from the  Chartered Accountants’ Benevolent Association (CABA). It claims that three emerging trends in debt among accountants have became more prevalent during the first half of 2011. These patterns have been noted by CABA’s debt advice team, who provide guidance and practical help to accountants with financial difficulties, over the last two years but have become noticeably more common in recent months:

They are:

• People aged 65 with debt problems due to insufficient retirement planning. Many of these accountants have large mortgages or unsecured debt and are having to continue, or restart, work.
• Those who have debt problems – even though they are asset rich – because they are reluctant to realise the value of those assets. For example, by selling a large house and moving to a smaller one.
• In the newest development, accountants with their own practices who are using their personal finances to prop up the business, even though it is effectively insolvent. Many of the people in this group are facing action from the HMRC for VAT and PAYE.

That first point chimes with one of my most recent articles for AccountingWeb: Will you be able to afford to retire?

I can’t ask if any of these 3 points resonate with readers of this blog as I wouldn’t expect anyone would want to admit it. But just in case let me remind you that one of CABA’s roles is to provide help and advice to chartered accountants suffering from debt issues and to empower them to manage their own debt. In addition, CABA can make payments to individuals and their dependants in cases where debt is causing genuine hardship. However, they are at pains to stress that:

“We are a benevolent association and it is not our place to simply write cheques. Our role is more to help accountants uncover a way out of the very difficult situations in which they sometimes find themselves.”

More details can be found at www.caba.org.uk

How many online directory services can there be for accountants?

I’m aware of three new ones about to launch:

www.ask-an-accountant.co.uk - Providing people with “direct access to great accountants free of charge”. Invites users to post a question and promises that a real accountant will respond in under 30 minutes. There’s also a listing service for accountants – £125 per month with  a maximum of 5 accountants per postcode.

www.switchmyaccountant.com - Offers people the facility to complete a ‘switch form’ and to be “matched with an accountant in your area”. The listing facility costs accountants £75 per month.

www.getaccountant.co.uk - Offers people the opportunity to find local accountants by ref to their postcode. Accountants can obtain exclusivity of promotion for upto 4 specific postcodes. Accountants are encouraged to offer fixed fee quotes.  Special discounted facility for first 200 licencees £27 per month.

Others that have been around a while include:

www.choose-your-accountant.co.uk – A different model. Businesses looking for an accountant place an ad describing their needs.  Any registered accountant can submit a tender for the work. A maximum of 4 tenders are allowed per lead. Accountants are automatically alerted to leads which fit their stated preferences and only pay for leads they want to puruse.

www.accountantlocal.co.uk – Local directory listings of accountants. Appears as a paid for result above the natural search results in Google. Seems to be no charge for being listed. I assume accountants later get invited to pay extra to be ‘featured’ in the local search results.

www.searchaccountant.co.uk - Allows users to search for accountants in their postcode area. Results will show upto max of 7 who have paid to be listed. Launched 2001 but only 4 of the areas have max 7 accountants in them. Unclear what accountants have to pay to be included and to add their own articles and news items. FAQs page is “coming soon”.

www.find-uk-accountant.co.uk – Directory listing. Basic listing is free for accountants who then pay £14.99 per lead. Alternative is a premium listing for £10 a month with added benefits – leads then cost only £9.99. The site contains a comparison with 4 other sites that are not accountant focused (ie: none of those listed above). Users of ClearBooks get a special deal.

www.find-me-an-accountant.com – Claims to be more of a dating agency approach than a directory. Users identify their needs and are matched with accountants who have registered and shared their info. Accountants then pay for targetted leads that are passed to them.

www.uk.servicestart.com/accountant.do – User is required to enter post code, answer 10 simple questions and provide summary of their enquiry. Accountant only pays anything if they decide to contact the customer. “You never risk competition from more than 4 other providers on any job.”

www.uk.servicestart.com/Tax-return-assistance.do – As above but there are only 6 questions this time.

www.unbiased.co.uk – This “the leading consumer search” site operates a directory service for IFAs, mortgage advisers, solicitors and accountants. There is no charge for advertising and users choose who to approach from the adverts they see when they enter their postcode. Enhanced ads, which make it more likely that users will choose you and easier for them to get in touch, are £29pm

Also popping up in the search results when someone searches for accountants are a couple of standard directory listings showing accountants in the local area:

www.yell.com

www.thomsonlocal.com

And, for tax specific advice and support from vetted experts in their fields I should also mention my own: www.TaxAdviceNetwork.co.uk

Each of the sites that require payment to list accountants claims to be highly rated by Google. The sites reference ‘Search Engine Optimisation’ (SEO) – as justification for this. It means that the directory site is optimised to be attractive to Google (and often to other search engines too). In theory this means that the directory site appears high up on page one of the results whenever anyone in the UK searches for a new accountant. That’s the theory anyway. Some of these sites appear more often when the search for a new accountant includes words that also appear in the directory’s name.

Are there any others to add to the above list? Beyond the Institute member listing services that do not appear to have been Google optimised.

[Edit: Chartered Accountant members of the ICAEW also have the facility to receive referrals through the new ICAEW Business Advice Service being launched in Autumn 2011. See: BusinessAdviceService.com ]

I’ve written a separate blog post highlighting what I think are the 6 factors that will determine whether it is worth paying to be included on any of the paid for directory listings.

I’d love to know what degree of success accountants have been getting from their directory entries and whether they favour any in particular. If you’d rather tell me privately so as to not to publicise your success to others do contact me direct. Many thanks

Feel free to check out any of the links below. These are taken from my twitter feed over the last week. Each item is something I found of use, interest or value and am happy to share:

From #accountingwebuk Why we won’t be seeing the rise of ‘Accounticitors’: http://bit.ly/mbMIiL // ie: Accountant/Solicitor firms

An article I wrote explaining why, despite the Legal Services Act permitting the formation of Multi-disciplinary firms, accountants are unlikely to rush into bed with solicitors.

Social Media for accountants, Tax-Buzz plus tips/advice and … http://conta.cc/jnJ97C via #constantcontact The supplementary weekly newsletter from Tax Advice Network Feel my views are being misrepresented: Note to Mark Lee: Twitter works for professionals http://dld.bz/aead4 I agree it can do @dahowlett Referencing a blog post by Dennis Howlett and a rude video that misrepresent my views on twitter – as will be apparent from my articles and posts on this site! Come and see the founders of #tonic choirs in: Life, love and laughter – in Harrow 8pm on Sat 2 July http://bit.ly/m6XvZ8 I’m a great fan of Philip Barnett who founded Tonic and recommend this event unreservedly. Financial advisers. Do you want a better relationship with #HMRC ? Read ‘Why tax agent enrolment matters’ on #citywire http://dld.bz/adTRF Article of mine in New Model Adviser magazine (and online) – addresses issues for IFAs drawn from HMRC’s con doc: Establishing the future relationship between the tax agent community and HMRC RT @TheTaxBuzz: Ed Balls does an Alan Johnson…. http://bit.ly/jsyHjv // Of course – it was a Balls-up! Highlighting the way that Ed Balls revealed he doesn’t understand how VAT works for businesses Appreciate the invitations I get to industry seminars and dinners. Wondering if it ever has to do with my inclination to tweet about them? Just musing RT @AGreenTax: …..not all companies are into tax avoidance; http://bit.ly/lLOGr0 // Sage words Andrew – and thanks for the quote Referencing an interesting blog post from an ex-big firm tax partner Love this idea from @DuaneJackson – Business Owners: Give some advice to accountants: http://bit.ly/lFvywg via @AddThis Referencing a blog post where business owners say what they want from their accountants Heard a fab idea for getting referrals from bad debts. If they really can’t pay then tell them the least they can do is to refer you on... Passing on a tip picked up recently from David Oliver of Insight marketing RT @philipcalvert: On Days You Don’t Feel Like Marketing http://6sen.se/jjAvz3 // Great advice. Thanks for sharing that Phil Another good blog post I was happy to share RT means I have ReTweeted someone else’s tweet (the person whose twitter name follows the @ sign after the RT). Where there is room I have added // followed by my comment at the end. Remember tweets are limited to 140 characters.

I loved a recent blog post written by Paul Simister on his ‘Differentiate your business‘ blog.

He explains that Yellow Pages Bingo is a game for checking that your marketing hasn’t fallen into the trap of being too similar to your competitors. And he then reveals the results of playing the game with accountants in central Birmingham.

Paul’s game shows the high level of similarity when comparing accountants’ adverts in Yellow Pages. He looks at descriptions of firms, services and offers. I suspect the results would be the same across the country and that the content of accountants’ websites are also pretty similar.

Paul’s concludes by answering his own question:

What happens when every supplier looks the same?

The choice comes to either the cheapest or the most convenient.

I agree, but I’m not sure it’s a bad thing as it’s what most people want and those are pretty much the two most important factors determining how they will choose their first accountant. Cost and convenience.

Paul notes that the latest edition of his Yellow Pages has fewer adverts for accountants than previously. I suspect this is due to an awareness that most people now use the  web to find a new accountant. Back in 2009 I wrote a related piece:  Accountants’ adverts are not working any more

And here’s the rub. To be found on the web when someone searches for a new accountant you need to use the same words as everyone else – in so far as visitors may be searching for those terms.  Of course you have the facility to make your website stand out in other ways, beyond the words you use. But that’s a subject for another day although I have previously provided objective advice here on ‘websites for accountants‘.

What do you think about yellow pages bingo for accountants?

Readers may be interested in this Radio 4 series starting tomorrow Monday 8 March. There are ten episodes to the series so thank goodness it’s only a ‘brief history’!

1. 8 Mar 2010 15:45–16:00 BBC Radio 4 Episode 1 1/10. Jolyon Jenkins traces the religious roots of some accounting practices.
2. 9 Mar 2010 15:45–16:00 BBC Radio 4 Episode 2 2/10. Jolyon Jenkins goes back 5,000 years to see how accountants invented writing.
3. 10 Mar 2010 15:45–16:00 BBC Radio 4 Episode 3 3/10. How a corrupt Roman governor was tried in court using his own forged account books.
4. 11 Mar 2010 15:45–16:00 BBC Radio 4 Episode 4 4/10. The rise of double entry book-keeping in medieval Italy.
5. 12 Mar 2010 15:45–16:00 BBC Radio 4 Episode 5 5/10. Jolyon Jenkins examines accountancy fraud in the Middle Ages.

It will also be available on BBC iplayer Radio for those who cannot listen live.

This is a first. A friend of mine, Tom Ball, is the brains behind a unique idea that could be of use and interest to many professional firms. Hence the reason I’m blogging about it.

AllABoardroom is a meeting room and bar aboard a customised bus. They removed the seats and put in a proper boardroom for 8 people and a bar – and a fireplace.  It’s an inspired idea and provides an innovative working environment for upto 8 people. A boardroom and an executive bar so you can work together and have fun as you travel.

I think it could work well for small team away days so you can work while you travel to your eventual destination. It can also be used for meetings on the go between clients, meetings with prospects – you take the boardroom to them, touring offices and at an exhibition. I’m sure there are many more uses too.

They’ve got a competition to win a free day for your team. Have a look if the idea intrigues you: www.allaboardroom.com

This blog has been a labour of love for well over 3 years now and contains in excess of 300 posts. Many have either come from my talks or have been incorporated into my talks and seminars. As 2009 draws to a close, you may be interested to see this personal choice of my posts over the last 12 months.  This has been an interesting review for me as it’s revealed a different way of categorising the subjects I have enjoyed writing about.

Summary

My output here dropped significantly as I only managed 60 posts in 2009.  I don’t feel bad about that though as I’ve also written well over 100 pieces for the TaxBuzz blog and posted almost 150 items to the Accountant jokes and fun blog.

Commenting on news items

The year started with me questioning whether it was true that “One in four firms expects to lose clients” and that there would be “A flood of mergers in 2009″ I also suggested that Clients WANT more support in these trying times.

Other such posts in 2009 have addressed:

• The future of compliance services for accountants
• The future of auditing and assurance services
• Two new accountancy consolidators by 2011? I don’t think so

Conventional wisdom

Another theme on the blog this year was to challenge conventional wisdom:

• Why bigger isn’t always best;
• Are your fees high enough?
• What do accountants sell? The answer is NOT ‘time’; 
• Do you offer a service guarantee? I bet you do;
• Limited Liability Partnerships – additional protection?
• Do your timesheet procedures reduce new fees?
• Accountants’ adverts are not working any more
• “Added value” – what do you mean?
• Not all Accountants are business advisers

Professional negligence

One of the most popular and frequent talks I’ve presented to groups of accountants over the last few years has been on the risks accountants run and how they can reduce these without tying themselves in knots. Among the related items I’ve posted to the  blog this year have been posts titled:

• Do you treat clients like lab rats?
• What is it that can go wrong?

Face to face networking

The importance of effective networking skills is generally recognised but how do we improve our skills in this area? Here’s a selection of my posts offering tips and advice on this subject in 2009:

• Networking strategies for accountants
• Networking strategy – plan your follow up beforehand
• What does Networking have in common with inheritance tax planning?

Social networking

A year ago I wrote a piece explaining why, in my view, Twitter is not for accountants. What I was saying was that accountants need not bother with twitter especially if they think of it as a route to securing new clients. Since then twitter’s popularity has increased and I’ve noted more and more accountants are experimenting with it. As a result I then wrote a number of more positive and helpful pieces which are summarised on the twitter page of this site.

Other related posts this year included:

• “Social” vs anti-social networking
• Is it worth the time it takes to learn how to use social media?

Top tips

I’ll complete this review of blog posts in 2009 with these reminders of key tips for accountants who are keen to be more productive and more successful:

• Expect more clients to seek advice on Tax Credits
• Why your clients are indifferent and don’t recommend you
• 7 ways to ensure your pitch is not a waste of time
• Why aren’t more accountants talking about LLPs with clients?
• Advising your most important client
• 3 time management tips
• Two top interview tips
• Bookkeeping services and options
• Do as you would be done by….

With all best wishes for the New Year.

The facility to operate as an LLP became a reality in the UK on 6 April 2003. That’s more than 6 years ago. Whilst an increasing number of professional service firms are migrating to an LLP structure the concept it still relatively unknown to most clients.

Why is that?

Given how many presentations that I and others have given at seminars and training sessions for accountants I am sure that most of them understand the key issues, differences and benefits of LLPs.  When I lectured on this subject from around 2001-2007 I used a matrix to highlight the key distinctions as between the 4 principal alternative business structures in the UK:

• a sole trader; • a conventional partnership (where the individual works with one or more partners in the business); • a limited liability partnership – LLP – (this provides the individual and their partners with the protection of limited liability, just as with a company); or • a limited company. There is also a fifth option – the Limited Partnership (as distinct from LLP) – but this is rarely an attractive or feasible choice for smaller businesses. These old style Limited Partnerships were very restrictive, required at least one partner to have unlimited liability and precluded the limited partners from being involved with the management of the business. The LLP is a very different animal.

So why the apparent reluctance to discuss LLPs with clients?

I think it has much to do with something I never had cause to fully understand or to speak about. But it is a critical issue for accountants in practice. And until and unless they are clear on this issue I entirely understand why they don’t advocate LLP structures as an option when talking with their clients.

Quite simply it’s How do you prepare LLP accounts? Do the accounts prep software packages include an LLP option? Does the accountant fully understand the issues so as to be able to anticipate the accounting issues that are especially relevant? And so on.

In this connection I was inspired to write this piece after noting a CPD seminar “LLP Accounts Preparation” being promoted by Tolley in a flyer that arrived this morning. Sadly the event took place on 11 May and 1 June so it’s too late for now. If the content matches the title then this seminar could be very useful and deserves to be well attended if it is rerun.

If you’re already an advocate of LLPs, are aware of other sources of information on this subject or of accounts prep software that facilitates the preparation of LLP accounts, please add your comments below.

(If you want more on this subject I wrote an outline piece on another blog here: Limited Liability Partnerships (LLPs) – a better business structure than a limited company?)